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Basergo, Lovers Mae B. General Classification of Individual Taxpayers
Basergo, Lovers Mae B. General Classification of Individual Taxpayers
1. Resident Citizens.
A citizen of the Philippines residing therein. Under the 1987 Constitution, the following are
citizens of the Philippines.
● Those who are citizens of the Philippines at the time of the adoption of this
Constitution;
● Those whose fathers or mothers are citizens of the Philippines;
● Those born before January 17, 1973, of Filipino mothers, who elect Philippine
citizenship upon reaching the age of majority; and
● Those who are naturalized in accordance with the law.
2. Non-resident Citizen.
● A citizen of the Philippines whose physical presence abroad is with a definite
intention to reside therein – to the satisfaction of the Commissioner of Internal
Revenue;
● A citizen of the Philippines who leaves the Philippines during the taxable year to
reside abroad, either as an immigrant or for employment on a permanent basis. A
good example would be Overseas Contract Workers (OCW) or Overseas Filipino
Workers (OFW) who were issued an overseas employment permit. For purposes of
income tax, a seaman is considered an OCW;
● A citizen of the Philippines who works and derives income from abroad and whose
employment there requires him to be physically present abroad most of the time
during the taxable year. “Most of the time” means at least 183 days;
● A citizen who has been previously considered as a non-resident citizen and who
arrives in the Philippines at any time during the taxable year to reside permanently in
the Philippines shall likewise be treated as a non- resident citizen for the taxable year
with respect to his income derived from sources abroad until the date of his arrival in
the Philippines. So, if the taxpayer, who is previously considered a non-resident
citizen arrived in the Philippines on July 1, 2016 with the intention of residing
permanently in the Philippines, he/she shall be considered a non-resident citizen for
his income from January 1 to June 30, 2016 (prior to his date of arrival) and a
resident citizen for the rest of the year.
3. Resident Alien.
● An alien who lives in the Philippines with no definite intention as to his stay (floating
intention);
● One who comes to the Philippines for a definite purpose which in its nature would
require an extended stay and to that end makes his home temporarily in the
Philippines;
● An alien who has acquired a residence in the Philippines and retains his status as
such until he abandons the same and actually departs from the Philippines.
4. Nonresident Alien (NRA).
● An alien who comes to the Philippines for a definite purpose which in its nature may
be promptly accomplished;
● One who may either be a: (a) NRA engaged in a trade or business (NRAETB) in the
Philippines or (b) NRA not engaged in trade or business (NRANETB) in the
Philippines. A NRA who shall come to the Philippines and stay for an aggregate of
more than 180 days shall be deemed a NRAETB.
EXAMPLES:
1. Juan, a filipino citizen, left the philippines and stay abroad from march 15,2019 to
april 1,2020
2. Mamoud Jibril, A libyan national arrived in the country on Nov. 4, 2019. Mr jibril
stayed in the Philippines since then without any working visa or work permit.