BIR Ruling

July 10, 1967 Mr. Howard Goforth 17 Agno Street Quezon City S i r : This refers to your letter dated May 8, 1967 requesting information as to whether or not, for income tax purposes, you are a resident or non-resident alien under the following circumstances: "I am an American citizen and I came to the Philippines last year with my wife and daughter as a pre-arranged employee. My contract of employment with a domestic corporation was executed on January 7, 1967 and was duly submitted and approved by the Department of Labor. Among other things, my contract of employment provides as follows: prll 'The First Party shall employ the Second Party (myself) as a Plant Manager in the former's food processing factory located at Marilao, Bulacan, for the minimum term of two (2) years to take effect upon the approval of the Bureau of Immigration and/or the Department of Labor, of the latter's application for the status of a pre-arranged employee; "As additional information, I am submitting herewith a photostatic copy of my Certificate of Residence (Temporary) issued to me by the Bureau of Immigration." In reply thereto, I have the honor to inform you that, as shown in your certificate of residence issued by the Bureau of Immigration, your stay in the Philippines is temporary, and limited for 2 years under the contract of employment approved by the Department of Labor. Accordingly, being an alien pre-arranged employee temporarily residing in the Philippines as Plant Manager in a domestic Corporation, you are considered a non-resident alien engaged in trade or business within the Philippines, subject to tax imposed by Section 21 of the Tax Code, as amended, on your entire net income received from all sources within the Philippines. (Sec. 22, NIRC. See also BIR Ruling, October 8, 1958). Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue