JJReyes Posted February 3, 2012 Posted February 3, 2012 Americans pay federal taxes on their global income. Florida, Texas, Nevada, etc. have no state taxes on income, while others like Hawaii and Oregon, it could be as high as 11%. If you are a foreign national with no personal income derived from the Philippines, are you subject to their income tax? If I live in the Philippines six months plus one day; obtain a driver's license; buy or rent a condo; etc., I could change my state tax residency. Some may argue there is no benefit in the Philippines because of the Value Added Tax. We pay in Hawaii 4.715% in General Excise Tax at the retail level and .5% at the wholesale level. This is for everything except prescription medication. The pyramiding effect is equal to a 15% to 20% sales tax. Many Hawaii residents think VAT & GET are one and the same. It isn't. If you have a 13a spousal visa, Balikbayan privileges or renew your visa for an additional 59 days, are you subject to Philippine income tax? In other words, is your retirement income from the United States taxable in the Philippines? 1 Link to comment Share on other sites More sharing options...
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