FAST FACTS: Avoiding double taxation for nonresidents

Sofia Tomacruz

This is AI generated summarization, which may have errors. For context, always refer to the full article.

FAST FACTS: Avoiding double taxation for nonresidents
The Philippines is currently a signatory to 41 tax treaties that address double taxation situations

MANILA, Philippines – According to Philippine law, nonresidents with income sources in the Philippines are required to file taxes.

For these individuals who reside in a different country but receive income from the Philippines, double taxation could occur. 

The Philippines is, however, currently a signatory to 41 tax treaties, that address double taxation situations.

These treaties outline provisions for nonresidents with income sources in the Philippines, and specify certain types of income that may be subject to tax relief.

Under these specific agreements, tax relief can come in the form of tax exemption or lower preferential tax rates.

Tax exempt sources may include income for:

  • Teachers
  • Artists
  • Athletes
  • Trainees
  • Students
  • Researchers
  • Director’s fees
  • Government services
  • Personal services
  • Pensions
  • Gains from sales of shares or alienation of property
  • Independent personal services not rendered for more than 183 days

Preferential tax rates may also be applied on: 

  • Dividends
  • Interests
  • Royalties
  • Shipping and air transport 

The following is a list of countries with double taxation agreements with the Philippines, according to the Bureau of Internal Revenue (BIR). Click on each country to find out what specific taxes may be subject to relief: 

 Australia  January 1, 1980
 Austria  January 1, 1983
 Bahrain   January 1, 2004
 Bangladesh   January 1, 2004
 Belgium   January 1, 1981
 Brazil   January 1, 1992
 Canada   January 1, 1977
 China  January 1, 2002
 Czech Republic  January 1, 2004
 Denmark  January 1, 1998
 Finland   January 1, 1982
 France  January 1, 1978
 Germany  January 1, 2016
 Hungary   January 1, 1998
 India  January 1, 1995
 Indonesia  January 1, 1983
 Israel   January 1, 1997
 Italy   January 1, 1990
 Japan   January 1, 1981
 Korea   January 1, 1987
 Kuwait  January 1, 2014
 Malaysia  January 1, 1985
 Netherlands  January 1, 1992
 New Zealand  January 1, 1981
 Nigeria   January 1, 2014
 Norway   January 1, 1998
 Pakistan  January 1, 1979
 Poland   January 1, 1998
 Qatar   January 1, 2016
 Romania   January 1, 1998
 Russia  January 1, 1998
 Singapore  January 1, 1997
 Spain   January 1, 1994
 Sweden   January 1, 2004
 Switzerland   January 1, 2002
 Thailand  January 1, 1983
 Turkey   January 1, 2016
 United Arab Emirates  January 1, 2009
 United Kingdom of Great Britain and Northern Ireland  January 1, 1979
 United States of America  January 1, 1983
 Vietnam  January 1, 2004

Tax relief is not automatic. Tax treaty relief applications must be submitted to the International Tax Affairs Division of the BIR.

Guidelines and procedures from the BIR can be found here. – 


Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!
Sleeve, Clothing, Apparel


Sofia Tomacruz

Sofia Tomacruz covers defense and foreign affairs. Follow her on Twitter via @sofiatomacruz.