Tax Status of Mr. Angel Romero

April 1, 1986 BIR RULING NO. 026-86 21 (f) 000-00 026-86 Gentlemen : This refers to your letters dated August 15, and October 15, stating that your client Angel Romero, a Filipino citizen was employed by a Regional Technical Headquarters in the Philippines; that he was appointed subsequently by the Head Office of the Regional Technical Headquarters in HongKong of Mondial Orient Limited, a multinational company organized and existing under the laws of HongKong as Area Supervisor Accounting effective May 1, 1985; that since the start of 1985, he was required to report for work in HongKong from Monday to Friday and comes back to Manila on weekends; that his compensation is paid in foreign currency; that his work schedule for the rest of the year would be the same; and that he is entitled to six weeks vacation leave in the Philippines annually including this year. Based on the foregoing representations, you now request a ruling as to the tax status of Mr. Romero. In reply thereto, I have the honor to inform you that pursuant to Section 20(e)(1) of the Tax Code a "non-resident citizen" means one who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein. Moreover, a citizen leaving the Philippines during the taxable year to reside abroad, either as an immigrant or for on a more or less permanent basis , shall be considered as a non-resident citizen for such taxable year with respect to the income derived from foreign sources from the date he actually departed in the Philippines. (Section 20(e) (2), Tax Code) Accordingly, your client is considered a non-resident citizen as of May 1, 1985, subject to tax on his adjusted gross income derived from all sources without the Philippines during each taxable year, computed in accordance with Section 21(f) of the Tax Code, as amended. This ruling is issued on the basis of the foregoing facts as presented. However, if upon investigation it will be disclosed that said facts are incorrect then this ruling shall be considered as null and void. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner