Guide to Global Payroll Management - 2020 - C-47
Payroll Tax Summaries for Selected Countries
PHILIPPINES
PHILIPPINES
Basis for tax
Residents who are citizens or aliens are subject to tax on their worldwide income.
Resident and nonresident aliens are subject to tax on Philippines-source income.
Residence rules
Residence is determined by the length of and reason for the stay. Individuals arriving in
the Philippines for a definite purpose that can be promptly accomplished are not considered
residents. However, individuals arriving in the country for a definite purpose requiring an
extended stay and that establish a temporary home there are considered residents. Aliens
who live in the country for an indefinite period are considered residents even if they intend to
return to another country. Resident aliens remain residents until they leave the country with
the intent to abandon residence.
Taxable employment income
Taxable employment income consists of gross compensation arising from an employment
relationship, minus personal and additional exemptions, and includes all remuneration such
as salaries, wages, emoluments and honoraria, bonuses, allowances, taxable pensions and
cash and noncash fringe benefits.
Taxable fringe benefits in a typical expatriate compensation package are subject to tax at
15% of the grossed-up monetary value of the benefits. These benefits include (but are not
limited to):
*
employer-provided vehicles;
*
employer-provided housing;
*
expense accounts;
*
employer-provided domestics (e.g., maids, drivers, cooks, etc.);
*
low-interest loans;
*
fees and memberships for social, athletic and other kinds of clubs paid for
by the employer;
*
foreign travel expenses;
*
vacation and holiday expenses;
*
tuition assistance for the employee or dependents; and
*
premiums for life or health insurance in amounts exceeding the legal limit.
Taxable fringe benefits for nonresident aliens not engaged in a trade or business within
the Philippines are subject to tax at 25% of the grossed-up monetary value of the benefits.
Taxable fringe benefits for managerial and supervisory-level employees are subject to tax at
35% of the grossed-up monetary value of the benefits.
C-47
Guide to Global Payroll Management - 2020
Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020
Table of Contents
Guide to Global Payroll Management - 2020 - Intro
Guide to Global Payroll Management - 2020 - Cover1
Guide to Global Payroll Management - 2020 - Cover2
Guide to Global Payroll Management - 2020 - A
Guide to Global Payroll Management - 2020 - B
Guide to Global Payroll Management - 2020 - C
Guide to Global Payroll Management - 2020 - PV-1
Guide to Global Payroll Management - 2020 - PV-2
Guide to Global Payroll Management - 2020 - D
Guide to Global Payroll Management - 2020 - E
Guide to Global Payroll Management - 2020 - F
Guide to Global Payroll Management - 2020 - Table of Contents
Guide to Global Payroll Management - 2020 - 2
Guide to Global Payroll Management - 2020 - 3
Guide to Global Payroll Management - 2020 - 4
Guide to Global Payroll Management - 2020 - 5
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Guide to Global Payroll Management - 2020 - 7
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Guide to Global Payroll Management - 2020 - 13
Guide to Global Payroll Management - 2020 - 14
Guide to Global Payroll Management - 2020 - PI
Guide to Global Payroll Management - 2020 - PI-1
Guide to Global Payroll Management - 2020 - 1-1
Guide to Global Payroll Management - 2020 - 1-2
Guide to Global Payroll Management - 2020 - 1-3
Guide to Global Payroll Management - 2020 - 1-4
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Guide to Global Payroll Management - 2020 - 3-1
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Guide to Global Payroll Management - 2020 - 4-10
Guide to Global Payroll Management - 2020 - PII
Guide to Global Payroll Management - 2020 - PII-1
Guide to Global Payroll Management - 2020 - 5-1
Guide to Global Payroll Management - 2020 - 5-2
Guide to Global Payroll Management - 2020 - 5-3
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Guide to Global Payroll Management - 2020 - PIII
Guide to Global Payroll Management - 2020 - PIII-1
Guide to Global Payroll Management - 2020 - 9-1
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Guide to Global Payroll Management - 2020 - 10-11
Guide to Global Payroll Management - 2020 - 10-12
Guide to Global Payroll Management - 2020 - PIV
Guide to Global Payroll Management - 2020 - PIV-1
Guide to Global Payroll Management - 2020 - 11-1
Guide to Global Payroll Management - 2020 - 11-2
Guide to Global Payroll Management - 2020 - 11-3
Guide to Global Payroll Management - 2020 - 11-4
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Guide to Global Payroll Management - 2020 - 11-17
Guide to Global Payroll Management - 2020 - 11-18
Guide to Global Payroll Management - 2020 - 11-19
Guide to Global Payroll Management - 2020 - 11-20
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Guide to Global Payroll Management - 2020 - 11-22
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Guide to Global Payroll Management - 2020 - 11-24
Guide to Global Payroll Management - 2020 - 11-25
Guide to Global Payroll Management - 2020 - 11-26
Guide to Global Payroll Management - 2020 - 11-27
Guide to Global Payroll Management - 2020 - 11-28
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Guide to Global Payroll Management - 2020 - PV
Guide to Global Payroll Management - 2020 - PV-3
Guide to Global Payroll Management - 2020 - 12-1
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Guide to Global Payroll Management - 2020 - PVI
Guide to Global Payroll Management - 2020 - PVI-1
Guide to Global Payroll Management - 2020 - AppA
Guide to Global Payroll Management - 2020 - AppA-1
Guide to Global Payroll Management - 2020 - A-1
Guide to Global Payroll Management - 2020 - A-2
Guide to Global Payroll Management - 2020 - A-3
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Guide to Global Payroll Management - 2020 - AppB
Guide to Global Payroll Management - 2020 - AppB-1
Guide to Global Payroll Management - 2020 - B-1
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Guide to Global Payroll Management - 2020 - AppC
Guide to Global Payroll Management - 2020 - AppC-1
Guide to Global Payroll Management - 2020 - C-1
Guide to Global Payroll Management - 2020 - C-2
Guide to Global Payroll Management - 2020 - C-3
Guide to Global Payroll Management - 2020 - C-4
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