Philippines tax
Tax residence: More than 180 days in calendar year. Foreign-source income of residents: Territorial (non-residents). Special regime for new residents: Exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000.
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Tax residence
- More than 180 days in calendar year · A non-resident alien who stays in the Philippines for an aggregate of more than 180 days during a calendar year is deemed to be doing business in the Philippines and is taxed at the graduated rates instead of the flat 25%.
- Residence status follows the National Internal Revenue Code classification of the individual, not the visa category.
- Residence status follows the National Internal Revenue Code classification of the individual; the SIRV and SRRV do not change it.
Special regimes for new residents
Special regime
Philippines SRRV holders: exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000
Tax relief
Details
- On: Pensions and annuities of SRRV holders
- Limit: $7,000
The Philippine Retirement Authority lists SRRV holders as exempt from tax on pensions and annuities, from customs duties and taxes on one-time importation of household goods and personal effects up to USD 7,000, and from travel tax. Executive Order 1037 section 9 is the legal basis for the customs exemption. 5 6
Taxed on
Pensions and annuities of SRRV holders; customs duties and import taxes on a one-time shipment of household goods and personal effects up to USD 7,000; travel tax.
Who it applies to
- Holder of a Special Resident Retiree's Visa issued under the Philippine Retirement Authority retirement programme (SRRV Classic, SRRV Courtesy and the other options listed on the PRA page).
- Executive Order 1037 section 9(e): exemption from customs duties and other import taxes, one time only, up to USD 7,000 for household furniture; if transferred to another person within three years of entry, the exempted taxes become payable.
Exclusions
- Income other than pensions and annuities is taxed under the ordinary resident alien rules.
- The same section 9 of Executive Order 1037 allows one automotive vehicle to be imported free of import, customs and sales taxes.
Limits
- $7,000 · Maximum value of household goods and personal effects imported duty and tax free, once only
Tax residence
The PRA exemption is listed as a visa privilege; the source rule for resident aliens is in “Philippines: resident aliens taxed on Philippine-source income only”.
Visas
The exemptions attach to holding an SRRV.
Other taxes
Other taxes such as VAT, real property tax and income tax on Philippine-source income apply as for other resident aliens.
Checked against official sources on Change log
Which visas the regimes apply to
- Exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000: SRRV Classic, SRRV Courtesy, SRRV Courtesy · Ex-Filipino. The exemptions attach to holding an SRRV.
Standard rules and foreign-source income
Standard rules
Philippines: non-resident aliens taxed on Philippine-source income only
Territorial (non-residents)
Details
- On: Income derived from sources within the Philippines
Non-resident aliens are taxed only on income from sources within the Philippines (NIRC section 23). A non-resident alien who stays more than 180 days in a calendar year is treated as doing business in the Philippines and pays the same graduated rates as residents on that income; one who is not engaged in trade or business pays a flat 25% on gross Philippine-source income (section 25). 1 2 3
Taxed on
Income derived from sources within the Philippines.
Who it applies to
- Individual is a non-resident alien for Philippine tax purposes.
- Engaged in trade or business in the Philippines, which includes anyone who comes to the Philippines and stays for an aggregate of more than 180 days during a calendar year: taxed in the same manner as a citizen or resident alien on taxable income from sources within the Philippines (section 25(A)(1)).
- Not engaged in trade or business in the Philippines: 25% of the entire income received from sources within the Philippines, including salaries, interest, dividends, rents and other periodic or casual gains (section 25(B)).
Exclusions
- Resident citizens are taxed on worldwide income.
- For a non-resident alien not engaged in trade or business, capital gains on shares of a domestic corporation and on real property follow the capital gains tax rules of section 24(C) and (D), not the 25% rate.
Days in the country
- More than 180 days in calendar year · A non-resident alien who stays in the Philippines for an aggregate of more than 180 days during a calendar year is deemed to be doing business in the Philippines and is taxed at the graduated rates instead of the flat 25%.
Tax residence
Residence status follows the National Internal Revenue Code classification of the individual, not the visa category.
Visas
The SIRV or SRRV does not itself establish tax residence or exempt income.
Other taxes
VAT, withholding and social contributions are separate.
Checked against official sources on Change log
Standard rules
Philippines: resident aliens taxed on Philippine-source income only
Worldwide income
Details
- On: Income derived from sources within the Philippines for resident aliens
- Limit: ₱250k/yr ≈ $3,980
Under NIRC section 23, resident aliens (like non-resident aliens and non-resident citizens) are taxed only on income from sources within the Philippines; resident citizens are taxed on worldwide income. 1 3
Taxed on
Income derived from sources within the Philippines for resident aliens. Income from outside the Philippines is outside the base, but the burden of proving a non-Philippine source lies on the resident alien and income is presumed Philippine-source absent proof.
Who it applies to
- Alien individual who is a resident of the Philippines.
Exclusions
- Citizens residing in the Philippines are taxed on income from within and outside the Philippines.
- Philippine-based content income of a resident alien is generally taxable.
Limits
- PHP 250,000 a year (≈ $3,980) · Self-employed individuals under the PHP 3,000,000 (≈ $47,800) VAT threshold may opt for 8% on gross receipts above this amount instead of graduated rates and percentage tax
- PHP 3,000,000 a year (≈ $47,800) · VAT threshold for gross sales or receipts
Tax residence
Residence status follows the National Internal Revenue Code classification of the individual; the SIRV and SRRV do not change it.
Visas
Tax scope follows the NIRC classification of the individual, not the visa category.
Other taxes
Graduated schedular rates under NIRC section 24(A)(2)(a), percentage tax or VAT, and social contributions apply separately.
Checked against official sources on Change log
Standard rules
Philippines resident aliens: graduated income tax 0-35% on Philippine-source income (from 1 January 2023)
35% tax
Details
- Limit: ₱250k/yr ≈ $3,980
A resident alien pays graduated income tax of 0% up to PHP 250,000 (≈ $3,980) and 15% to 35% above that on income from Philippine sources; the schedule applies from taxable year 2023. Self-employed individuals with gross receipts up to PHP 3,000,000 (≈ $47,800) may elect 8% on receipts above PHP 250,000 (≈ $3,980) instead. 4 3
Taxed on
Philippine-source taxable income of the individual (compensation less non-taxable benefits and employee social contributions, or business and professional income). Schedule from 1 January 2023: PHP 0 to 250,000 nil; over 250,000 to 400,000 15% of the excess; over 400,000 to 800,000 PHP (≈ $12,700) 22,500 plus 20%; over 800,000 to 2,000,000 PHP (≈ $31,900) 102,500 plus 25%; over 2,000,000 to 8,000,000 PHP (≈ $127,000) 402,500 plus 30%; over 8,000,000 PHP (≈ $127,000) 2,202,500 plus 35%. Top marginal rate shown as ratePercent.
Who it applies to
- Individuals earning purely from self-employment or profession whose gross sales or receipts do not exceed the VAT threshold of PHP 3,000,000 (≈ $47,800) may elect, irrevocably for the year, 8% of gross sales or receipts in excess of PHP 250,000 (≈ $3,980) in place of the graduated rates and percentage tax (RR 8-2018).
- Resident aliens are taxed only on income from sources within the Philippines (see “Philippines: resident aliens taxed on Philippine-source income only”); the schedule applies to that income.
- Husband and wife compute their individual income tax separately on their respective taxable income.
Exclusions
- The 8% option is not available to a VAT-registered taxpayer or to partners of a general professional partnership on their distributive share.
- Foreign-source income of a resident alien is outside the Philippine base, with the burden of proving a foreign source on the taxpayer (see “Philippines: resident aliens taxed on Philippine-source income only”).
Limits
- PHP 250,000 a year (≈ $3,980) · Taxable income at or below which no income tax is due
- PHP 400,000 a year (≈ $6,370) · 15% band ends; 20% applies from PHP 400,001 (≈ $6,370) to PHP 800,000 (≈ $12,700)
- PHP 2,000,000 a year (≈ $31,900) · 25% band ends; 30% applies from PHP 2,000,001 (≈ $31,900) to PHP 8,000,000 (≈ $127,000)
- PHP 8,000,000 a year (≈ $127,000) · 35% applies to taxable income above PHP 8,000,000 (≈ $127,000)
- PHP 3,000,000 a year (≈ $47,800) · VAT threshold: gross receipts ceiling for the optional 8% income tax
Tax residence
The schedule is the graduated rate in Section 24(A)(2)(a) of the Tax Code as amended by RA 10963 (TRAIN), applied to resident aliens engaged in trade, business or profession and to compensation income within the Philippines.
Visas
Tax treatment follows resident or non-resident alien status and source of income, not the visa category; SRRV holders have the pension exemption in “Philippines SRRV holders: exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000”.
Other taxes
VAT, percentage tax, and Social Security System, PhilHealth and Pag-IBIG contributions apply separately.
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VAT, social security and other taxes
- VAT, withholding and social contributions are separate.
- Graduated schedular rates under NIRC section 24(A)(2)(a), percentage tax or VAT, and social contributions apply separately.
- VAT, percentage tax, and Social Security System, PhilHealth and Pag-IBIG contributions apply separately.
- Other taxes such as VAT, real property tax and income tax on Philippine-source income apply as for other resident aliens.
Questions people ask
When do you become a tax resident in Philippines?
More than 180 days in calendar year (A non-resident alien who stays in the Philippines for an aggregate of more than 180 days during a calendar year is deemed to be doing business in the Philippines and is taxed at the graduated rates instead of the flat 25%). Residence status follows the National Internal Revenue Code classification of the individual, not the visa category.
Is foreign-source income taxed in Philippines?
Territorial (non-residents). Non-resident aliens are taxed only on income from sources within the Philippines (NIRC section 23). A non-resident alien who stays more than 180 days in a calendar year is treated as doing business in the Philippines and pays the same graduated rates as residents on that income; one who is not engaged in trade or business pays a flat 25% on gross Philippine-source income (section 25).
Who qualifies for Exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000?
Holder of a Special Resident Retiree's Visa issued under the Philippine Retirement Authority retirement programme (SRRV Classic, SRRV Courtesy and the other options listed on the PRA page). The exemptions attach to holding an SRRV.
How are Digital Nomad Visa holders taxed in Philippines?
No special regime in our records is tied to the Digital Nomad Visa. The standard rules apply: Non-resident aliens are taxed only on income from sources within the Philippines (NIRC section 23). A non-resident alien who stays more than 180 days in a calendar year is treated as doing business in the Philippines and pays the same graduated rates as residents on that income; one who is not engaged in trade or business pays a flat 25% on gross Philippine-source income (section 25).
Is there a tax break for SRRV Classic holders in Philippines?
Philippines SRRV holders: exemption from tax on pensions and annuities and from customs duties on one-time household importation up to USD 7,000: The Philippine Retirement Authority lists SRRV holders as exempt from tax on pensions and annuities, from customs duties and taxes on one-time importation of household goods and personal effects up to USD 7,000, and from travel tax. It's separate from the visa and has its own conditions.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (6)
Official sources
- Republic Act No. 8424, National Internal Revenue Code of 1997 (Sections 23 and 25) · Supreme Court of the Philippines E-Library · checked 2026-10-12 · published 1997-12-11
- Republic Act No. 10963, Tax Reform for Acceleration and Inclusion (Section 6, amending NIRC Section 25) · Supreme Court of the Philippines E-Library · checked 2026-10-12 · published 2017-12-19
- Revenue Memorandum Circular No. 97-2021 (tax obligations of social media influencers, restating NIRC section 23) · Bureau of Internal Revenue, Philippines · checked 2026-10-10 · published 2021-08-16
- Digest of Revenue Regulations No. 8-2018 (TRAIN Law): graduated income tax schedules from 1 January 2018 and from 1 January 2023 · Bureau of Internal Revenue · checked 2026-10-10 · published 2018-02-20
- Special Resident Retiree's Visa (SRRV): benefits and exemptions · Philippine Retirement Authority · checked 2026-10-12
- Executive Order No. 1037, s. 1985 (Philippine Retirement Authority; Section 9 incentives and benefits) · LawPhil Project (Official Gazette text) · checked 2026-10-10 · published 1985-07-04