ARE SOCIAL SECURITY OR PENSION BENEFITS FROM ABROAD TAXABLE IN THE PHILIPPINES?

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Do you know that there is a Convention between the Government of the Republic of the Philippines and the Government of the United States of America with Respect to Taxes on Income? It was signed in Manila on October 1, 1976, and it entered into force on October 16, 1982, the thirtieth day following the exchange of the relevant instruments of ratification in Washington, United States on September 16, 1982. Its provisions on taxes apply on income derived or which accrued beginning January 1, 1983.

It is expressly provided under Article 4 of the tax treaty that:

“Remuneration described in Article 20, which pertains to Governmental Functions, and payments described in Article 19, which pertains to Social Security Payments, paid from the public funds of a Contracting State or a political subdivision or local authority thereof shall be treated as income from sources within that Contracting State only.

This means that the social security payments that you receive from the US government is considered as an income from sources within the United States.
Under the Philippine tax law, if you are an alien or foreigner and that includes a former Filipino, and you reside in the Philippines, you are taxable only on your income from sources within the Philippines. In that case, your social security benefits are not taxable in the Philippines.

However, dual Filipino citizens are considered as Filipino citizens, not aliens. Under the Philippine tax law, Filipino citizens who are residing in the Philippines are taxable on their income from sources within and outside the Philippines. Does it mean that your social security benefits from the US are now taxable in the Philippines?

“Article 19 - SOCIAL SECURITY PAYMENTS.

Social security payments and other public pensions paid by one of the Contracting States to an individual who is a resident of the other Contracting State (or in the case of such payments by the Philippines to an individual who is a citizen of the United States) shall be taxable only in the first-mentioned Contracting State. This Article shall not apply to payments described in Article 20 (Governmental Functions).”

“Article 20 - GOVERNMENTAL FUNCTIONS.

Wages, salaries and similar remuneration, including pensions, annuities, or similar benefits, paid from public funds of one of the Contracting States:
a) To a citizen of that Contracting State, or
b) To a citizen of a State other than a Contracting State who comes to the other Contracting State expressly for the purpose of being employed by the first mentioned Contracting State for labor or personal services performed as an employee of the national Government of that Contracting State, or any agency thereof, in the discharge of functions of a governmental nature shall be exempt from tax by the other Contracting State.”

Pursuant to those provisions of the Tax Treaty, social security benefits received by dual Filipino Citizens who retire or reside in the Philippines are not subject to Philippine income tax.

[pilotusa]

Great information if you happen to be an attorney and can understand the fast-paced gibberish.

[sonyabiera]

Thanks for sharing this!
God, bless forever 🙏

[Charles-rdku]

Thank you very much for this you give me a good start

[aroblox_player]

is it possible to receive both pension from the 🇵🇭and 🇺🇸when you are dual or residing citizen in the US..?

[elizabethmarquez]

Pursuant to those provisions of the Tax Treaty, social security benefits received by dual Filipino Citizens who retire or reside in the Philippines are not subject to Philippine income tax. -- Is this correct? I am a dual Filipino-American residing in the Phiippines. So does it mean I don't have to pay Philippine income tax for my SSA benefits from the US?

[robrussell]

So - I’m a uk citizen married to a Philippine lady- looking at retirement in the Philippines - now I know the Philippines won’t tax my uk income BUT will the uk government tax my uk income if I’m permanently in the Philippines? One section of the uk government website says yes (possibly) and another says probably not. There’s no clear answer.

[RosalieNatividad-xe]

Pensioner mama ko mg 1year na dito sa pilipinas pwd ba xa makapension maski di xa babalik ng U.S.

[ulyssesfewl]

Australia only pays pensions to residents of Australia. Move to the Philippines and you become ineligible to receive any pension. So, taxation of Australian pensions in the Philippines becomes irrelevant, since the pension cannot be received by an Australian when living in the Philippines. Correct me if I am wrong.

[maritawhitehouse]

Australia is not mentioned or information is incomplete.

[rororonceesaddi]

Patulong po sana ang papa ko nakapag hulog ng 10 years mahigit po nung nasa US siya, paano po kaya makapag claim 60 na po siya ngayon, sana po mapansin matanda na po papa ko sana maayos na salamat po

[santipolo]

Northern Ireland is part of the United Kingdom so there is no need to mention it as well when referring to the UK. However, if you used Great Britain instead then, the correct mention would be to add Northern Ireland as it is not part of Great Britain. But, as you correctly refer to us as the United Kingdom, drop Northern Ireland as it is as included in the UK as are the other countries, England, Wales and Scotland.

Can I also say though that you are very biased toward to the US. Because of military ties I get they are significant but, in devoting most of every video to them with a side note to others who retire there, you are being dismissive and borderline racist. Parts of Bohol have a fair German mix and yet, central Europe gets barely any mention.

If you wish your site to grow, by more inclusive.