°µÍø½ûÇø

           As an American with foreign income you can take tax credits on the foreign income tax paid up to the amount that is paid on the same income on your US tax return.

@mugtech

Yes just to add to Mugtechs comment US nationals when working abroad are subject to tax on all their income with offsets allowable on the income tax paid in their country of residence. The relevant regulation is the 2010 FATCA (Foreign Account Tax Compliance Act) that I'm sure you will find excruciatingly useful reading Steven.

Indeed our very own ex UK prime minister Boris Johnson had US dual citizenship and was subject to FATCA's reach on selling his home in London on capital gains tax. He has now renounced his US citizenship for this reason (he was born in the Big Apple)

@stevenkirchner2

Hi,

there is a double taxation treaty between the Philippines and the USA. You need to read it and check it. Also a tax consultant can help you with it.

Bye

Andy

As I understand it, unless your income is generated from a source within the Philippines you are not taxed.

I know of no one paying Philippine taxes on SS or other retirement income generated and deposited in the US.

income earned from employment or investments in the Philippines is subject to tax.

i saw the following on the internet:
Like many countries, the Philippines will tax you based on whether or not you are considered a resident. To be a resident in the Philippines, you will have to stay longer than 180 days in a calendar year.

Do US citizens living abroad pay double taxes?


Who Is Subject to Double Taxation? Most °µÍø½ûÇøs are taxed by both the US and the country they reside in, resulting in double taxation. The US is one of the few countries in the world that taxes citizens regardless of where they live and work.


What is the 183 day rule in the Philippines?


Determining tax residency status. A foreigner's tax residency status has a significant impact on their tax obligations. For instance, if a foreign national stays in the Philippines for more than 183 days within a calendar year, they will be considered a resident alien.Mar 20, 2025




does every american that is living in the phillipines get wacked with a double tax ? An American IRS tax and a Phillipine tax on their income ? I am thinking of retirement in Phillipines but hell no if I have to put up with that. I find it hard to believe so many Americans would be retired in Phillipines if they had to pay double tax.

Could anyone give me some input on this ? I would greatly appreciate. Do I need to talk to a Phillpine tax advisor ? I am in Phillipines now. - @stevenkirchner2

In general the USA has tax treaties with the Philippines designed to avoid double taxation. Even if you sell property and make a "capital gain", you deduct the Philippine CG tax from the CG you must pay the US IRS. If you have regular income the US has rather high limits exempting US taxes. Unless you have exceptional income sources you should not have a tax problem here.

thank all of you for your most kind responses. I suspect unless I earn income in the phillpines I don't need to worry about this based on the answer given to me by gregparker6201. I think he is most likely correct This double tax issue would only be a possible problem on imcome earned in the phillpines. I am not planning on earning income in the phillpines all I want to do is live in Phillpines and use my SS and corporate retirement pension and my investments made in the USA.

@stevenkirchner2

Your welcome.

Thanks

You will be fine, don’t let this taxation question affect your decision to retire in a more economical and less stressful environment.