If you register a business in the Philippines and you are American, and you own 10+% of the company, you will need to do tons of filings with the IRS or possibly face a massive fine. And you will likely need a specialist accountant who knows how do these particular filings which can be expensive (like $1800 USD each year). How America taxes its citizens living overseas is outrageous.
If you're smart open a llc in Arizona. You get some one to sign as a 10% silent partner. Then you don't pay state tax on income, you don't file taxes and just pay money in the philippines. Bro the fact I had to put this up is stupid. I have a friend who is a computer programmer he hasn't paid taxes in 20 year's I love the dude. But if it's capital gains or corporate tax their are so many deductions you could make it so the government owes you. I am not kidding be small do some research.
Excellent research and analysis! But at less than 5 minutes in, I simply got lost in the details. What would really help is if the facts, figures, and topics were written so we could keep track of what you are talking about. You probably had to write it all down to keep it straight yourself, right? : )
Very informative and confirms much of what I understand as well. One thing that I'm unclear on; it's my understanding that 'foreigners' are not allowed to own a business in the Philippines, or work without appropriate VISA/Permits. Would be interested in your insights on that. I subbed and liked.
It’s more advantageous to have your company based elsewhere unless you’re doing a local trade in the country- regardless, there are ways to do both for anyone who is determined to do so.
Hey @@itsJustinSpencer, 😄ok, so, you said "It’s more advantageous to have your company based elsewhere unless you’re doing a local trade in the country" and yes, that's true, but had nothing to do with my question. Then you said "regardless, there are ways to do both for anyone who is determined to do so." and I'm like, yep, you're absolutely right, there are ways to do both for anyone who is determined to do so. 😄 that's a very nicely worded non-answer to my question. It's ok if you don't know the answer, just say you don't know. I'm not trying to be a smart alec, but you have to admit, you didn't even try to answer the question, and no worries, thats cool. In the meantime, I spoke with a Filipino attorney that understands these laws, and was advised that foreigners can own certain percentages of companies, but it has to be a minor share, one of the attorney's mentioned up to 40%. They recommended that in my particular situation that I consider listing the business in my Filipina wife's name, so we're looking in to that option. As for permits, I learned that with my 13A VISA, there may not be a need for a permit, but I asked them to verify that specifically and I am waiting back for the answer. It's really looking like for my particular business situation, I may need a consulting permit, and the process isn't terribly difficult. We shall see. I really appreciated your information on income taxation here in the Philippines, I am not nearly as concerned about that process as I was before. I hope you will continue producing videos. Thanks!
Hello Justin, The info you gave regarding income made outside of the country was really valuable. i actually went through the same course as you did asking google and ChatGPT. didn`t get to the point i get in touch with a local CPA. finally, i got to your video, trying my luck to search the same question on UA-cam. i have a dividend income from the investing in US stocks, which i pay taxes for in my home country in the middle east. i can suppose from what your suggesting is that as long as i am still a resident in my home country and paying taxes for my foreign dividend income there, i don't need to pay taxes in the Philippians aswell. even tough i have passed my 183 days stay. however, what i am trying to further understand is should i even file in the Philippians, assuming i stayed there that long?
Interesting that income from overseas is not taxable as a foreigner, if living in the phils over 183 days in a year. As you say, whatever is available on the internet implies otherwise. I have always been advised verbally by knowledgable people not to worry about taxes in that regard, but have never seen it in writing. I have no interest in earning money in the philippines, but I like that you have really attempted to do a deep dive into the subject, that has is not otherwise covered on yt.
Hi Justin, Thanks for this great video and well-presented information. I read somewhere that foreigners married to Filipino citizens would automatically be classified as "Resident Citizens" if living in the Philippines. This would mean that the territorial taxes applied to Resident Aliens would no longer apply, and the foreign spouse of a Filipino citizen would have to pay taxes on worldwide income. It doesn't seem logical or fair (without Filipino citizenship), yet I could not find any information to contradict or confirm that. Please share your knowledge on the matter or refer me to someone who may be able to help (BIR isn't helpful on the matter). Thank you.
I don’t know the answer but I would theorize that you cannot be taxed if you are not a citizen, resident and citizen are not the same and only the US and one other country taxes citizens on worldwide income (Philippines only taxes their citizens on goods and services sold locally in Philippines but not on foreign customers that buy digital goods or services who don’t live in the Philippines)
Hi Justin, if I stay in philippines over 183 days, my customers are in USA and my home country is in Europe. Do I pay the taxes in my home country even after the 183 days?
Generally, any money earned after the 183rd day should not be able to be taxed (indefinitely), any money earned on the first 183 days is a maybe (pertaining to your home country), but you can/should double check on both parts of my answers.
hey Justin, Nice video. Does the Phillipines tax foreign capital gains and dividends? Im from Australia and im about to retire age 29, these will be my only income sources. I will likely apply for the SIRV
@@itsJustinSpencer Thanks man. Very interesting. I originally was going to incorporate in Romania and spend 6 months there, and the rest in Philippines but that clears a lot of things up. Thanks again.
wait wait.. you're telling me if im british and go to philippines and remotely work for my company based here.. i don't pay tax? :O i can just keep extending my visa.. ?
Hi, Justin. I live in California and am investing in fish pond in Philippines. When I move money from my bank account in Philippines to my US account, are there tax implications?
I am an italian content creator and have e-commerce business. I have a company but this year live more of 7 month in Philippines during the year. If I close my Italian company and I am fiscal residence in Philippines and all my income arrive in my bank account in Europe by all transactions everywhere in the world. I pay 0% tax in the Philippines?
love the video love how you say tho if you make more then 1M it's only 50% tax so small lol I feel like that's a lot cuzs now you pay 50% of all your hard work away and you still have to pay for your workers the stuff at work and everything and yet you also need money I don't know how you have the balls to say 50% tax is small? good video tho I'm still going to try.
Not only that, if all you earn and live off of is Social Security, you don't even have to file. As long as your income is below the standard deduction, you owe nothing and do not have to file. ua-cam.com/video/FSo0kjrqOzk/v-deo.html
If you register a business in the Philippines and you are American, and you own 10+% of the company, you will need to do tons of filings with the IRS or possibly face a massive fine. And you will likely need a specialist accountant who knows how do these particular filings which can be expensive (like $1800 USD each year). How America taxes its citizens living overseas is outrageous.
Interesting perspective
If you're smart open a llc in Arizona. You get some one to sign as a 10% silent partner. Then you don't pay state tax on income, you don't file taxes and just pay money in the philippines. Bro the fact I had to put this up is stupid. I have a friend who is a computer programmer he hasn't paid taxes in 20 year's I love the dude.
But if it's capital gains or corporate tax their are so many deductions you could make it so the government owes you. I am not kidding be small do some research.
Thanks for sharing ❤
Thanks for watching!
tnx for the info sir
Excellent research and analysis! But at less than 5 minutes in, I simply got lost in the details. What would really help is if the facts, figures, and topics were written so we could keep track of what you are talking about. You probably had to write it all down to keep it straight yourself, right? : )
Very informative and confirms much of what I understand as well. One thing that I'm unclear on; it's my understanding that 'foreigners' are not allowed to own a business in the Philippines, or work without appropriate VISA/Permits. Would be interested in your insights on that. I subbed and liked.
It’s more advantageous to have your company based elsewhere unless you’re doing a local trade in the country- regardless, there are ways to do both for anyone who is determined to do so.
Hey @@itsJustinSpencer, 😄ok, so, you said "It’s more advantageous to have your company based elsewhere unless you’re doing a local trade in the country" and yes, that's true, but had nothing to do with my question. Then you said "regardless, there are ways to do both for anyone who is determined to do so." and I'm like, yep, you're absolutely right, there are ways to do both for anyone who is determined to do so. 😄 that's a very nicely worded non-answer to my question. It's ok if you don't know the answer, just say you don't know. I'm not trying to be a smart alec, but you have to admit, you didn't even try to answer the question, and no worries, thats cool.
In the meantime, I spoke with a Filipino attorney that understands these laws, and was advised that foreigners can own certain percentages of companies, but it has to be a minor share, one of the attorney's mentioned up to 40%. They recommended that in my particular situation that I consider listing the business in my Filipina wife's name, so we're looking in to that option. As for permits, I learned that with my 13A VISA, there may not be a need for a permit, but I asked them to verify that specifically and I am waiting back for the answer. It's really looking like for my particular business situation, I may need a consulting permit, and the process isn't terribly difficult. We shall see.
I really appreciated your information on income taxation here in the Philippines, I am not nearly as concerned about that process as I was before. I hope you will continue producing videos. Thanks!
Hello Justin, The info you gave regarding income made outside of the country was really valuable. i actually went through the same course as you did asking google and ChatGPT. didn`t get to the point i get in touch with a local CPA. finally, i got to your video, trying my luck to search the same question on UA-cam. i have a dividend income from the investing in US stocks, which i pay taxes for in my home country in the middle east. i can suppose from what your suggesting is that as long as i am still a resident in my home country and paying taxes for my foreign dividend income there, i don't need to pay taxes in the Philippians aswell. even tough i have passed my 183 days stay. however, what i am trying to further understand is should i even file in the Philippians, assuming i stayed there that long?
Can you please go over CRYPTO TAXES as an American wanting to retire in the Philippines? Super interested in this and miss your videos!
Crypto tax law for an American is simply generally subject to the American laws, they are a topic still being discussed and developed
Interesting that income from overseas is not taxable as a foreigner, if living in the phils over 183 days in a year. As you say, whatever is available on the internet implies otherwise. I have always been advised verbally by knowledgable people not to worry about taxes in that regard, but have never seen it in writing.
I have no interest in earning money in the philippines, but I like that you have really attempted to do a deep dive into the subject, that has is not otherwise covered on yt.
Thanks!
Always a pleasure ❤
Thanks!
👍👍👍
Hi, great content. Do you have to pay taxes if you have crypto investments from the US? Capital gains is a killer and probably worse in this case.
Please follow up on this!
thank you so much
Your welcome
Useful info for locals thanks
If I get a cash gift from a Austrailian who is a non resident of the Philippines, am I subject to income tax?
Hi Justin, Thanks for this great video and well-presented information. I read somewhere that foreigners married to Filipino citizens would automatically be classified as "Resident Citizens" if living in the Philippines. This would mean that the territorial taxes applied to Resident Aliens would no longer apply, and the foreign spouse of a Filipino citizen would have to pay taxes on worldwide income. It doesn't seem logical or fair (without Filipino citizenship), yet I could not find any information to contradict or confirm that. Please share your knowledge on the matter or refer me to someone who may be able to help (BIR isn't helpful on the matter). Thank you.
I don’t know the answer but I would theorize that you cannot be taxed if you are not a citizen, resident and citizen are not the same and only the US and one other country taxes citizens on worldwide income (Philippines only taxes their citizens on goods and services sold locally in Philippines but not on foreign customers that buy digital goods or services who don’t live in the Philippines)
Hi Justin, if I stay in philippines over 183 days, my customers are in USA and my home country is in Europe. Do I pay the taxes in my home country even after the 183 days?
Generally, any money earned after the 183rd day should not be able to be taxed (indefinitely), any money earned on the first 183 days is a maybe (pertaining to your home country), but you can/should double check on both parts of my answers.
hey Justin, Nice video.
Does the Phillipines tax foreign capital gains and dividends? Im from Australia and im about to retire age 29, these will be my only income sources. I will likely apply for the SIRV
Philippines does not tax your type of foreign income since it’s derived outside of the country
@@itsJustinSpencer so it's like in Malta? But better climate and much cheaper living... I'm coming baby 😂
What about place of effective management? Also do you have to declare your foreign income anyway to get the tax certificate?
I sell on Amazon FBA in the USA, so I don't need to pay tax to the Filipino Government since my business is all in the USA?
As long as your customers are not living in the Philippines you are exempt
@@itsJustinSpencer Thanks man. Very interesting. I originally was going to incorporate in Romania and spend 6 months there, and the rest in Philippines but that clears a lot of things up. Thanks again.
No problem Glen
wait wait.. you're telling me if im british and go to philippines and remotely work for my company based here.. i don't pay tax? :O i can just keep extending my visa.. ?
Correct
@@itsJustinSpencer packing my bags.. going to cebu now.. :D You sir may have saved me...
You pay taxes in the country you are working.
Hi, Justin. I live in California and am investing in fish pond in Philippines. When I move money from my bank account in Philippines to my US account, are there tax implications?
Only if the money moved was untaxed income
I am an italian content creator and have e-commerce business. I have a company but this year live more of 7 month in Philippines during the year. If I close my Italian company and I am fiscal residence in Philippines and all my income arrive in my bank account in Europe by all transactions everywhere in the world. I pay 0% tax in the Philippines?
generally, if your customers do not live in the Philippines, then you are not subject to taxation while residing in the Philippines
Do i have to pay taxes if i make my money online? Thanks in advance.
It depends upon how much profit you make
love the video love how you say tho if you make more then 1M it's only 50% tax so small lol I feel like that's a lot cuzs now you pay 50% of all your hard work away and you still have to pay for your workers the stuff at work and everything and yet you also need money I don't know how you have the balls to say 50% tax is small?
good video tho I'm still going to try.
Man o man ..no wonder there is no foreign investment in the Philippines .,,,,f. ,, me
You're a nerd haha... very informative.
Haha, Thanks!
Next how to avoid taxes in the Philippines 😂
Not only that, if all you earn and live off of is Social Security, you don't even have to file. As long as your income is below the standard deduction, you owe nothing and do not have to file. ua-cam.com/video/FSo0kjrqOzk/v-deo.html