Jump to content
Sign in to follow this  
davaodavao

Dividend from Australian business to non-resident Australian citizen, what are the Philippine tax implications?

Recommended Posts

Apologies if this is the wrong category.

I'm trying to find out what tax I would need to be paying if I receive a franked or Unfranked dividend from an Australian company. It seems a franked dividend has already had 27.5-30% tax already paid before it's received and the tax treaty seems to mention 25% cap on tax paid on the gross value but I can't figure out what that means, is it gross value received after Australian tax taken out or does the Australian tax get considered when Philippine tax is calculated.

Considering the question is fairly specific and might be complicated perhaps a better question is where can I find a tax accountant/lawyer that can help me with this? 

Share this post


Link to post
Share on other sites

Hi Davao.

I am not a lawyer or accountant, but I was married to one (accountant) for many years. Your question is a bit vague about where you receive your dividend. Were it me, I would receive it in the country where it is issued. Just have it deposited in a bank or investment institution there. It looks like Australia? Then it is done and settled and you pay whatever tax is owed there.

After that, you can forward those funds anywhere in the world without further tax being applied. You do not owe income tax in the Philippines unless it is earned here. Or is that too simplistic an answer?

Edited by Tommy T.
  • Like 1
  • Thanks 1
  • Hmm thinking 1

Share this post


Link to post
Share on other sites
1 hour ago, Tommy T. said:

You do not owe income tax in the Philippines unless it is earned here. Or is that too simplistic an answer?

I think it may be, Tom - if davaodavao happened to be a Filipina wouldn't he be subject to taxes here based on global income?  As a foreigner he would be taxed only on income earned here but is he? I know his flag shows Australia but...

Share this post


Link to post
Share on other sites
8 minutes ago, hk blues said:

I think it may be, Tom - if davaodavao happened to be a Filipina wouldn't he be subject to taxes here based on global income?  As a foreigner he would be taxed only on income earned here but is he? I know his flag shows Australia but...

Yeah... I agree, HK. That's why I couched my reply with the comment that his question was a bit vague. Perhaps I made a mistake by assuming from the country of birth flag that Australia is the home country?

Share this post


Link to post
Share on other sites
5 minutes ago, Tommy T. said:

Yeah... I agree, HK. That's why I couched my reply with the comment that his question was a bit vague. Perhaps I made a mistake by assuming from the country of birth flag that Australia is the home country?

It's a reasonable enough assumption, Tom.  But, it wouldn't be the 1st time there was a difference.

Share this post


Link to post
Share on other sites
2 minutes ago, hk blues said:

It's a reasonable enough assumption, Tom.  But, it wouldn't be the 1st time there was a difference.

Yep! So we will see if he replies and what he says... 

Edited by Tommy T.

Share this post


Link to post
Share on other sites

I know many many years ago the Philippines taxed globally as my wife needed to pay tax on her UK earnings, just said she wasa housewife so never paid any tax. A few years later the requirement was drop so perhaps the Philippines no longer taxes globally.

Share this post


Link to post
Share on other sites
15 hours ago, Gary D said:

I know many many years ago the Philippines taxed globally as my wife needed to pay tax on her UK earnings, just said she wasa housewife so never paid any tax. A few years later the requirement was drop so perhaps the Philippines no longer taxes globally.

If PH taxed global income of non-citizens no foreigners would move here to retire.  Most have pensions or investments that they live on when retired.

If the OP is not a Filipino citizen, he does not have to worry about Philippines taxes.  Even if it is deposited directly in a PH bank like some have their U.S. Social Security direct deposited to a PH bank.  Once in the PH bank, PH taxes will be due on any interest earned and will be deducted by the bank.

  • Like 2

Share this post


Link to post
Share on other sites
16 hours ago, Gary D said:

I know many many years ago the Philippines taxed globally as my wife needed to pay tax on her UK earnings, just said she wasa housewife so never paid any tax. A few years later the requirement was drop so perhaps the Philippines no longer taxes globally.

I checked this again - the Philippines taxes resident citizens on global income, non-resident citizens and non-citizens on income earned in the Philippines only. 

  • Like 1

Share this post


Link to post
Share on other sites
1 hour ago, OnMyWay said:

If PH taxed global income of non-citizens no foreigners would move here to retire.  Most have pensions or investments that they live on when retired.

If the OP is not a Filipino citizen, he does not have to worry about Philippines taxes.  Even if it is deposited directly in a PH bank like some have their U.S. Social Security direct deposited to a PH bank.  Once in the PH bank, PH taxes will be due on any interest earned and will be deducted by the bank.

The Philippines doesn't tax non-citizens on global income - only on income earned here in the Philippines.  

I'm not sure it's totally correct to say the OP doesn't need to worry about Philippines taxes if he's not a Filipino citizen.  IF the Philippines is like the UK, the bank will deduct standard rate tax from interest but the individual may be subject to higher rate taxes if he has other income here.  

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...