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No Tax Credit on Income Derived by Non-Resident Filipino Citizens from Abroad

BIR Ruling No. 015-73 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 26, 1973

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April 26, 1973 BIR RULING NO. 015-73 No tax credit on income derived by non-resident Filipino citizens from abroad . Section 21 of the Tax Code, as amended by Presidential Decree No. 69, imposes a tax on the gross income of non-resident citizens from all sources without the Philippines determined as follows: On the first $6000 1% On the amount exceeding $6000 but not exceeding $20,000 2% On the amount exceeding $20,000 3% In other words, the Philippine income tax due on the income derived from abroad by non-resident Filipino citizens is now based on the gross amount of said income, and precludes the deduction from gross income, or personal exemptions, and the application of credit for foreign taxes.

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