Tax Liability of an Alien Residing in the Philippines

April 19, 1988 BIR RULING NO. 148-88 44 (a) (1) (B) 136-87 148-88 M a d a m : This refers to your letter dated March 30, 1988 requesting a ruling on the following queries: "1) Am I to file Philippine income tax returns? "2) Does my husband have to file Philippine income tax returns? "3) If so, how should I report my income? What forms should I use? "4) How should my employer in Singapore report the funds deposited in my bank account? It is represented that you are an expatriate Seventh-Day Adventist missionary serving in the Philippines with a 9-G Visa until you are called to another country; that your salary comes entirely from foreign sources and is transferred to your Manila bank account from Singapore; that in no way, either financially or administratively, do you spend on the Seventh-Day Adventist Church in the Philippines, which is administered by Filipinos; that you do not receive funds from any Filipino entity; that the funds you receive for your work as a professor are intended to cover all your expenses; that included in said expenses are living expenses, contributions, charities, as well as professional expenses, such as journal subscriptions, books, associations dues, and others without which it would be impossible for your to do your work and maintain yourself as a professional and that your husband who is an ordained minister, is also an expatriate Seventh-Day Adventist missionary. In reply, please be informed that every alien residing in the Philippines, regardless of whether the gross income was derived from sources within or without the Philippines are required to file income tax returns. [Sec. 44(a)(1)(B), Tax Code, as amended] Accordingly, as a professor and a foreign missionary residing here in the Philippines, you as well as your husband are required to file income tax returns on both your salaries and the funds intended to cover all your expenses as well as that of your husband which are considered income pursuant to Section 28 of the same Code using BIR Form No. 1701-A. Moreover, the income tax return shall be filed in duplicate, and shall set forth specifically the gross amount of income from all sources. [Sec. 44(a)(3) Tax Code, as amended] Finally, it is suggested that your last question be referred to the taxing authority of Singapore which has jurisdiction over the same. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner