BIR Ruling

December 10, 1971 Mrs. Juana O. Lago Office of the Auditor Budget Commission Manila M a d a m : This is in reply to your letter dated October 21, 1971 requesting information on the following queries: "(1) If Filipino citizens working in the United States or in other countries have paid their income taxes in the country they are working in, are they still required to pay income tax in the Philippines? "(2) If so, do they have to pay in the Philippine Embassy abroad or do they have to pay direct to the Philippines? "(3) What schedule of payment will be followed and where can we get such schedule?" Filipinos residing abroad who have already paid their taxes to any foreign country are still required to file their Philippine income tax returns with the Philippines Government, because under Section 45(1)(A) of the Tax Code, as amended by Republic Act No. 6110, it is provided that every Filipino citizens whether residing in the Philippines or abroad are required to file income tax returns even if their income were earned abroad and to pay the tax thereon. Filipinos working abroad may file their Philippine income tax returns at the nearest Philippine foreign service establishment located in the country where they are working. The income tax due from them may be paid to the Revenue Attache assigned at the post, or to the finance officer/cashier thereof, in the absence of a regularly assigned Revenue Attache. (Sec. 2 & 6, Department of Foreign Affairs). The schedule of payment of the income tax is that prescribed in Section 51 of the Tax Code which states that said tax shall be paid at the time of the filing of the return but not later than April 15 of the year. Filipinos working abroad may, however, claim as deduction from their Philippine income tax any income, war-profits and/or excess-profit tax paid by them to any foreign country, or claim such payment as tax credit, provided they signify in their Philippine income tax return their desire to avail of such credit. (Sec. 30(c)(1),(B) & (3) (B), N.I.R.C.) Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue