Tax & Accounting
CST Tax Advisors
CST Tax Advisors offers professional accounting and tax services to business and individual expats in Manila.
Due to their wealth of knowledge in cross-border tax affairs and strong global network, the highly qualified team at CST Tax Advisors will be your loyal partner in Manila ensuring your international tax position is effectively managed.
CST Tax Advisors assists expats in:
- Accounting and financial services
- Personal and business tax
- Cross-border taxation advice
Tax & Accounting for Expats in Manila
The robust growing economy of Manila attracts a high number of expats and businesses every year from all corners of the world looking to benefit from the booming South Asian market in the Philippines. Most expats in Manila are classified as resident aliens and are taxed on their worldwide income.
Key Tax & Accounting tips you should know as an expat in Manila
- You become a resident of the Philippines if your aggregate length of stay in any calendar year exceeds 180 days.
- As a citizen of the Philippines, you are taxed on all income derived from sources within and outside the country.
- Non-residents are taxable only on their income within the Philippines.
- This income is taxed at progressive rates ranging from 5% to 32%
- Capital gains in Manila are generally subject to the ordinary income tax rates, although gains from the sale of certain shares and real property are subject to specified tax rates.
- You are required to file your tax return before 15 April after the close of the tax year. Tax on your income is generally withheld monthly by your employer.
Tax & Accounting for expats establishing a business in Manila
- As a Philippines corporation, your business is required to pay taxes on all income within and outside the country.
- Foreign corporations, whether engaged or not in trade or business in the Philippines, are taxed only on income derived from sources within the country.
- Your company is required to publish an annual financial report and submit it to the Securities and Exchange Commission (SEC). Your firm may also be required to have its books of account and other financial statements audited. It’s best to engage the services of a trusted tax and accounting advisor to make sure you complete all of your financial obligations in Manila.
- The dividends paid to shareholders are not subject to tax.
- Companies in the Philippines are taxed at a rate of 30%. The rate for regional operating headquarters is 10%. There is also an alternative minimum tax rate which is applicable for certain circumstances. It’s best to get professional advice to learn if you’re eligible for lower tax rates or other tax benefits.
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