Working Legally In The Philippines?

[Cypa]

Hi,

I am wondering if anyone knows and can share what kind of visa qualifies a foreigner to work legally in the Philippines? Not about working for international or foreign corporation operating there, rather to work in own business without all this "my wife's business" stuff.

It is not about if it is worth to have a business there and how much a foreigner can make competing with Filipinos, I am wondering about legal aspect of being able to work there.

Would it be 13A, SRRV or other? Tried myself to figure it out, didn't find solid answers yet.

If you know some of it, please share. Better yet, if possible, with links to official government or administration documents.

[jon1]

Cypa,

 

To work in the Philippines as a foreigner you will need a 9A or 13G visa. The Immigration Bureau's web site http://www.immigration.gov.ph/ is quite the cluster now and no longer spells out the different ones by number/letter. Even with a 9A or 13G you cannot own the business 100% unless it is within a Freeport (if I am not mistaken). 

 

The 9A visa is going to be under "Prearranged Employment Visas". I am not sure where to find the 13G requirements now. Since you are in Chicago, I would visit the Philippine consulate there http://www.philippineschicago.org/ to get some better info.

 

Doing business legally is the first challenge here, the next is not getting killed by your competition. You need to do a lot of business climate research before you jump into it.

Edited April 25, 2014 by jon1

[Cypa]

Thanks Jon1,

Since you mentioned this, is it really truth that if you a legal resident and permitted to work, you still can not own 100% of a business? I am aware about real estate not available for foreigners, but had no idea about a business being treated the same way. For example, if I am a CPA and allowed to work as CPA in the Philippines, my office would have to be owned at least 60% by a Filipino?

[Dave Hounddriver]

Since you mentioned this, is it really truth that if you a legal resident and permitted to work, you still can not own 100% of a business?

 

This thread does not seem to be about 'working' in the Philippines but more about 'owning a business' in the Philppines.  I thought of changing the thread title but will wait a bit to see what you think.

 

Working here is not hard.  A married visa entitles you to work at many jobs.  In other cases a normal work visa can be obtained fairly easily by an employer on your behalf (for some jobs).  Owning a business here (not in wife's name) is much more complicated.  There are some businesses foreigners can own outright, some that need 60% filipino ownership, some that you cannot own any part of.  As it is a quagmire best left to professionals I shall not go any further in this post but you will need to do a lot of research beginning at this Department of Trade and Industry site.

[Thomas]

Since you mentioned this, is it really truth that if you a legal resident and permitted to work, you still can not own 100% of a business?

One of the sponsors to this forum have informed us concerning maximum ownership in different types of businesses

Not at this address /prohibited-and-restricted-ownership-businesses-for-foreigners.php

It become much easier to get a work permit if it's a business, which employ at least 10 Filipins full time with at least minimum wages. (SVEG)

Even with a 9A or 13G you cannot own the business 100% unless it is within a Freeport (if I am not mistaken).

Is that a demand?   I hope not, because I want to have my business faaaar from cities with Freeport zones   :)   (Although there are other advantages in Freeport zones e g concerning using imported equipment and raw material.)

In the places I have read it just say "export business" and define it as "exporting at least 60% of the revenue".

 

 

I am aware about real estate not available for foreigners

Actualy foreigners CAN own:

/condo (some conditions)

/whole house on leased land

/Max 40 % of land THROUGH COMPANY IF the company need the land for the business.

Edited April 25, 2014 by Thomas

[Cypa]

Thanks. I got all I needed to know.

[Call me bubba]

perhaps off topic. but what kind of work can one do if they "work under the table"?

 is it mostly at home?online? teaching?

 had to ask

[Dave Hounddriver]

what kind of work can one do if they "work under the table"?

 

I cannot think of a case where "working under the table" is legal.  Shall we suggest that you mean legally working in Philippines but not being subjected to Philippine laws on that income?

 

I suspect that an author, for example, from USA could come here to write his book and then sell it in the US legally and claim the income as a US resident.  That is not "under the table".  Any portable job can be done here.  Some people are supervisors in their US job and communicate daily while visiting here.  They are considered to be working in the US and telecommuting.

 

So there are grey areas, but you will have to follow the laws of at least one country to be considered legal.

[chris49]

perhaps off topic. but what kind of work can one do if they "work under the table"?

 is it mostly at home?online? teaching?

 had to ask

 

Gets down to a definition of what is work? It seems innocuous, but what if down the line someone has a grudge and files a complaint. It would not be worth the risk.

[Thomas]

 

what kind of work can one do if they "work under the table"?

 

I cannot think of a case where "working under the table" is legal.  Shall we suggest that you mean legally working in Philippines but not being subjected to Philippine laws on that income?

 

I suspect that an author, for example, from USA could come here to write his book and then sell it in the US legally and claim the income as a US resident.  That is not "under the table".  Any portable job can be done here.  Some people are supervisors in their US job and communicate daily while visiting here.  They are considered to be working in the US and telecommuting.

 

So there are grey areas, but you will have to follow the laws of at least one country to be considered legal.

Don't Bubba mean jobs not told to the officials?   (Compare "paying under the table"  = no reciept).

Such are COMMON (concerning Filipinos.)  Many employers DON'T follow the laws even if the workers want to, paying less than the minimum salary according to the law, and don't pay the social security fees.  (SSS, PhilHealth and Pag-Ibig)   :bash: 

 

Concerning the green marked text, it DON'T follow the main law  (= Works done in Phils are taxed in Phils.)  BUT it CAN be legal IF the involved countries have a suiting double tax agreement.

 

Btw - writing a book, I suppouse would get APPROVED work permit.

NOTE! My interpretion of the law about BMBE (=Barangay micro business) is it DON'T tell CLEAR if such writing business can be classified as BMBE. Your barangay can tell how they interpret it, it's them who decide such anyway.

IF approved, it's INCOME TAX FREE for the OWNER, but not for employees. (Other taxes as e g VAT are PAID. I don't know about the social fees for the OWNER, but some of them are worth geting ANYWAY.)

Register BMBE is some work, but much simpler than for other businesses and cost almost nothing. Don't miss to tell BIR it's a BMBE.

And even if it isn't approved as BMBE, the Philippines has (rather) low tax for incomes from books. (A static percentage undepending of income size. I have forgot if it's 10 % or 20 % for book writers.)