Tax for remote workers in the Philippines
A plain overview of how income from a foreign business is treated for taxpayers in the Philippines. Not advice, but a good starting point.
This is a plain overview, not tax advice. Rules change and everyone's situation differs, so confirm with the BIR or an accountant before you rely on it.
The short version
A resident citizen of the Philippines is generally taxed on worldwide income, including money earned from a business abroad. Being paid into a foreign or local account does not remove the obligation.
What to do
- Register. Register with the BIR as self-employed or a professional and get your Certificate of Registration.
- Keep records. Official receipts and books of accounts, with amounts converted to pesos at the right rate.
- File and pay. Self-employed taxpayers file quarterly and annually. Look into whether the 8% flat option on gross income suits you better than the graduated rates.
- Expenses. Genuine costs of the work may be deductible under the graduated route. Keep the receipts.
Where to get help
The BIR publishes guides, and an accountant is worth the fee once your income is regular. Set it up properly early and it stays simple.