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INCOME TAXATION IN THE PHILIPPINES

Types of citizen:

Citizen - Taxable on all income derived from sources within and without the philippines.

Non-resident citizen - Taxable only on income derived from sources within the philippines.

Types of aliens:

Resident aliens - Taxable on all income derived from sources within and without the philippines.

Non-resident Alien - Taxable only on income derived from sources within the philippines.

Types of non-resident Aline:

Engage in business or trade in the philippines

Not engage in business or trade in the philippines

Residence status of aliens: An alien is considered a resident or non-resident depending on his


intention with regard to the length and nature of his stay.

Residence -

Non-residence alien - engaged in business or trade in the philippines are subject to tax same
manner as citizen and resident aliens on taxable income recieved from the philippines sources.

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