Filipina Dual Citizens and Income Tax

[Dave Hounddriver]

My wife has spent too much time watching Filipino bloggers to get her information.  I gave her the link to the Canada - Philippines tax treaty but she said "That is why I watch videos, because I don't want to read."

The situation is this, she is ready to become a Canadian citizen and wonders whether she wants to re-acquire her Philippine citizenship.  Some blogger said that means she has to pay tax to both countries.  I told her its all about where she makes the money and where she resides, nothing to do with Citizenship.  But of course I know nothing as I am not a Filipino.  TBH, the Can/Phil tax treaty is too long, didn't read but its really common sense.  Isn't it?

Anyone else come across this?

[Mike J]

Per google "do dual citizen pay taxes in the philippines". 

<snip>

Do dual citizens pay taxes in Philippines?

 

Dual citizens whose stay in the Philippines exceed one (1) year will pay the travel tax irrespective of which passport they use for travel. Will I be required to pay Income Tax/Other Taxes in the Philippines? Answer: Only Income/s earned in the Philippines will be subject to Philippine Income Tax.

 

<end snip>

 

[OnMyWay]

8 hours ago, Dave Hounddriver said:

and wonders whether she wants to re-acquire her Philippine citizenship.

Regardless of taxes, why would she be want the dual citizenship?  Not much need unless she wants to buy some land or vote.  She can obtain it in the future if needed.

I think you are correct in that the "where" money is earned is the important factor.

[Old55]

Income earned in US by my dual citizen wife is taxed by US IRS only. Philippines has no rights to tax income earned outside Philippines. 

 

Edited April 16, 2023 by Old55

[OnMyWay]

1 hour ago, Old55 said:

Income earned in US by my dual citizen wife is taxed by US IRS only. Philippines has no rights to tax income earned outside Philippines. 

 

Yes, but for the opposite scenario, the U.S. will tax money made in the Philippines, even if you don't live there.  E.g., dividends and interest on PH investments or savings.

[Old55]

25 minutes ago, OnMyWay said:

Yes, but for the opposite scenario, the U.S. will tax money made in the Philippines, even if you don't live there.  E.g., dividends and interest on PH investments or savings.

Yes. Earned income is taxable.

[Dave Hounddriver]

2 hours ago, OnMyWay said:

why would she be want the dual citizenship?

Good question.  Only answers I can think of are:  Everybody does it.  Or dreaming about going back there to retire some day.  Are there other reasons?

[Old55]

21 minutes ago, Dave Hounddriver said:

Good question.  Only answers I can think of are:  Everybody does it.  Or dreaming about going back there to retire some day.  Are there other reasons?

Pinoy Pride.

Balikbayan Visa, we find this useful. 

 

Below is from PHILIPPINE CONSULATE GENERAL

Balikbayan Visa-Free Privilege

BALIKBAYAN VISA-FREE PRIVILEGE

The following shall be covered under the Balikbayan Visa-Free Privilege:

Filipino citizens’ foreign spouses and children, regardless of age, who are traveling with them; and

Former Filipino citizens, together with their foreign spouses and children, regardless of age, who are traveling with them;

The entry of the above-mentioned foreign nationals shall be subject to the following condition:

They must be nationals permitted/allowed to enter the country visa-free under Executive Order No. 408[1], series of 1960;

Who are eligible under the Balikbayan Program?

The following are considered Balikbayan (returning Filipino) travelers to the Philippines:

A Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year;

A Filipino overseas worker;

A former Filipino citizen; or

Alien spouse and children of Balikbayan who are traveling together with the Balikbayan.

Who are not entitled to the Balikbayan privilege?

Former Filipinos and their immediate family members (spouse and children) who are visa-required nationals (nationals of countries NOT listed in the List of Countries Whose Nationals are Allowed 30 Day Visa-Free under EO 408). They must secure entry visas prior to their travel to the Philippines.

Nationals who are subjects of deportation/blacklist orders of the Department of Foreign Affairs and the Bureau of Immigration shall not be admitted to the Philippines.

What are the privileges of a Balikbayan?

Those who are admitted as Balikbayans are given an initial stay of one (1) year.

They may extend their stay for another one (1), two (2) or six (6) months provided they apply for an extension of stay at the Bureau of Immigration (BI) Main Office or any BI field office nationwide.

Other privileges that the Balikbayan can avail themselves of under Republic Act 9174 “Balikbayan Law” are:

Exemption from travel tax.

Duty-free shopping privilege of up to US$2,000.00, provided that shopping must be done within two (2) days upon arrival and purchases must be made personally by the balikbayan.

What do I need to present to the Philippine Immigration Officer to avail myself of the visa-free privilege for Balikbayan?

Returning Balikbayans or former Filipinos may enter the Philippines without a visa and stay for a period of one (1) year, provided that they have the following:

Passport valid for 6 months beyond the intended stay in the Philippines;

Round-trip ticket;

Proof of former Philippine citizenship (e.g., old Philippine passport or PSA-authenticated birth certificate). Please note that a foreign passport indicating “Philippines” as your place of birth is not sufficient proof of your previous Filipino citizenship;

Proof of full vaccination; and

A negative RT-PCR Test Result taken 48 hours or negative laboratory based Antigen-Test taken within 24 hours prior to the date of departure from the country of origin, in a continuous travel to the Philippines, excluding lay-overs, provided that the traveler has not left the airport premises or has not been admitted into another country during the lay-over.

[OnMyWay]

3 hours ago, Old55 said:

Balikbayan Visa, we find this useful. 

Don't need to citizenship for Balikbayan.  Former citizens may avail.

3 hours ago, Old55 said:

Proof of former Philippine citizenship (e.g., old Philippine passport or PSA-authenticated birth certificate). Please note that a foreign passport indicating “Philippines” as your place of birth is not sufficient proof of your previous Filipino citizenship;

 

[Joey G]

10 hours ago, OnMyWay said:

Please note that a foreign passport indicating “Philippines” as your place of birth is not sufficient proof of your previous Filipino citizenship;

 My wife has used nothing but her USA passport since 1992 several entries as late as Jan 2020.... never questioned her... or me for that matter (no marriage certificate) for BB stamp.

Maybe her ability to still talk Waray in circles around everyone at immigration gets her some leeway.