Resident Citizen Subject to Income Tax on His Taxable Net Income

July 13, 1981 BIR RULING NO. 158-81 021-00 000-00 158-81 The Regional Director Revenue Region No. 4-A Manila S i r : This refers to your letter dated April 14, 1981 requesting a ruling as to whether a citizen who works part time abroad and for which he is being paid in foreign currency can be considered as non-resident citizen. It is represented that a citizen of the Philippines who is an officer and/or director of a Philippine corporation, is at the same time a managing director, operations manager or an officer of its branch or subsidiary corporation abroad; as such director, manager or officer, he remains abroad for only a certain number of months a year to look after the business operations of the office, after which he returns to the Philippines; that for services rendered in favor of said corporation abroad, he receives compensation in foreign currency; and that said individual has been granted a permanent resident status in the country where he works. In reply, please be informed that under the foregoing facts, if the individual having permanent resident status in a foreign country, is an immigrant for which a foreign visa has been secured, then he is considered a non-resident citizen. In the absence of said foreign visa, the individual concerned has not established to the satisfaction of the Bureau of Internal Revenue the fact of his physical presence abroad with definite intention to reside therein, in which case, he is still considered a resident citizen subject to income tax on his taxable net income from sources within and without the Philippines pursuant to Section 21 of the Tax Code, as amended. The aforesaid taxpayer whether a resident citizen or non-resident citizen, can avail of the administrative tax amnesty prescribed by Presidential Decree No. 1740 as implemented by Revenue Regulations No. 9-80 dated November 12, 1980. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner