CLASSIFICATION OF TAX PAYERS

CITIZEN
– Those who are citizens of the Philippines at the
time of the adoption of the Feb. 2, 1987
Constitution.

– Those whose fathers or mothers are citizens of

the Philippines

– Those born before Jan. 17, 1973, the date of the

adoption of the 1973 Constitution, of Filipino
mothers, who elect Philippine citizenship upon
reaching the age of majority

– Those who are naturalized in accordance with law

 CLASSIFICATION OF TAX PAYERS
• RESIDENT CITIZEN

• NON-RESIDENT CITIZEN

• RESIDENT ALIEN

• NON-RESIDENT ALIEN ENGAGED IN TRADE/BUSINESS

• NON-RESIDENT ALIEN NOT ENGAGED IN BUSINESS

• NON-RESIDENT ALIEN EMPLOYED BY RHQs, OBU &

PETROLEUM CONTRACTORS
 RESIDENT CITIZEN

• A Filipino citizen who permanently resides in

the Philippines
 NON-RESIDENT CITIZEN
• A citizen of the Philippines who establishes to the satisfaction of
the Commissioner the fact of his physical presence abroad with
a definite intention to reside therein.
• 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 citizen of the Philippines who works and derives income from
abroad and whose employment thereat requires him to be
physically present abroad most of the time (at least 183 days)
during the taxable year.
• A citizen who has been previously considered as 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
in which he arrives in the Philippines with respect to his income
derived from sources abroad until the date of his arrival in the
 RESIDENT ALIEN

• An individual whose residence is within the

Philippines and who is not a citizen thereof.
 NON-RESIDENT ALIEN ENGAGED IN
TRADE/BUSINESS
• The alien is carrying on a business in the
Philippines.
• The term business does not include
performance of services by the taxpayer as an
employee but it includes the performance of
the functions of a public office.
• An alien who stayed in the Philippines for more
than 180 days during any calendar year shall be
deemed doing business in the Philippines.
 NON-RESIDENT ALIEN NOT ENGAGED IN
BUSINESS

• An alien who stayed in the Philippines for 180

days or less.
ILLUSTRATION
• A British computer expert was hired by a
Philippine Corporation to assist in its
computer system installation for which he
had to stay in the Philippines for 6 months. Is
he a resident alien?
• YES
• A British cultural performer was engaged to
perform in the Philippines for two weeks
after which he returned to his country. Is he
a resident alien?
• no
• An alien owns shares of stock in the
Philippines. Is he considered as engaged in
business or trade in the Philippines?
• no
• An alien temporarily serves as executive
manager of an airline in Manila. Is he
considered engaged in trade or business in
the Philippines?
• Yes
• A resident alien left the Philippines and
abandoned his residency thereof without any
intention of returning. May he still be
considered a resident alien?
• no
• A resident alien left the Philippines with a re-
entry permit. Is he still a resident alien?
• yes
• A non-resident citizen went to Manila under
the Balikbayan program. Does his return to
Manila interrupt his residence abroad?
• No
INDIVIDUAL SOURCES OF INCOME
WITHIN
WITHOUT
RC √ √
NRC √
RA √
NRAETB √
NRANEB √