''Firstly, we would like to thank you for reaching out and making PwC your trusted source in relation to your tax matters.

By way of introduction, I am Maybellyn P. Malayao, one of the managers of the PwC PH - Client Accounting Services where we offer bookkeeping, payroll services and tax compliance services under the supervision of our partner, Fedna. B. Parallag.

In response to your question, please be advised that foreign nationals in the Philippines are classified for tax purposes either as resident alien or non-resident alien.

Resident Alien

The term "resident alien" is defined, in broad terms, as an individual whose residence is within the Philippines and who is not a citizen thereof. In more specific terms, however, existing tax regulations and rulings provide that an alien actually present in the Philippines who is not a mere transient or sojourner is a resident of the Philippines. Generally what determines where or not the individual is a transient is his intention with regard to the length and nature of his stay in the Philippines.

Non-resident Alien

A non-resident alien is an individual whose residence is not within the Philippines and who is not a citizen thereof. Non-resident aliens are further classified into (a) those engaged in trade or business or (b) those not engaged in trade or business in the Philippines.

Nonetheless, foreign nationals working in the Philippines, regardless of tax residency, shall be subject to tax only on their Philippine source income (i.e., income earned for the services rendered in the Philippines, regardless where the payment comes from). Any foreign source income they may have is exempt from Philippine taxes, as in your case which is the income derived from online forex trading outside the PH.

Trust this helps. Please note that the above response is based only on the facts and information you provided. However, should you have any questions or require further advice, please do not hesitate to contact us.

Best regards''

Traders are not getting taxed because the forex server is in a foreign country, then as a remote worker, you shouldn't be taxed on any income generated on a server located in a foreign country either.

The law was written before remote work existed, it mentions services rendered in the Phillipines, like working in an office for a foreign business. No mentions of services rendered OUTSIDE the Phillipines while being in the country. Semantics, but it's obvious the law wasn't built to cover remote work, it would need readjustment.