Disclaimer: This is for information purposes only. Always consult a tax professional.

Foreign-Sourced Income

Generally, resident aliens (expats living in the PH) are taxed only on income derived from sources within the Philippines. This means your pension or online income from abroad is usually tax-exempt in the Philippines (though you may still owe taxes in your home country).

Local Income

If you work for a Philippine company or own a business here, you are subject to graduated income tax rates. VAT (Value Added Tax) is 12% and is included in the price of most goods and services.

US Citizens

The US is one of the few countries that taxes based on citizenship, not residency. You still need to file with the IRS, though the Foreign Earned Income Exclusion often mitigates double taxation.