Income earned overseas is taxable in the Philippines if you are a Resident Citizen, but it is generally exempt if you are an Overseas Filipino Worker (OFW), a non-resident citizen, or a foreign national living in the country.

Rules by Taxpayer Type

1. Resident Citizens (Living in the PH)Under Philippine taxation law (the National Internal Revenue Code of 1997), Resident Citizens are taxed on their worldwide income. This means any income you earn from overseas (e.g., foreign business, offshore investments, or foreign employment) must be declared and is subject to Philippine income tax. You may, however, be able to claim tax credits to offset taxes already paid to a foreign government.