Working outside the Philippines.

A.What do I need to know about my taxation if I am working outside the Philippines?

Taxation of Foreign-Source Income

B.  What is the taxation on income derived from sources outside the Philippines?

A resident citizen is taxable on all income derived from worldwide sources and it is not unlikely that the foreign-source income may also be subject to taxation in the country from which it was derived. To minimize the possibility of double taxation, the taxpayer may avail of the benefits provided under the applicable and effective tax treaty, which may either be in the form of tax exemption or a preferential tax rate. The amount of income taxes paid during the taxable year to any foreign country may be used as credits against Philippine income taxes.

To avail of this benefit, the resident taxpayer must submit a Certificate of Residency (COR) to the tax authority of the foreign jurisdiction to prove that he is a resident of the tax treaty partner of the said foreign country.

C. How do I apply for a Certificate of Residency?

A COR shall only be issued to resident taxpayer with an existing Tax Identification Number (TIN) who has complied with the following documentary requirements:

For Individual

For Corporation