Philippines: tax residency, rates & nomad visa

Tax residency rules in Philippines

As of 2026, Philippines’ tax-residency test centres on a presence threshold of 180 days^ⓘLawphil Project, Republic Act No. 12214 (CMEPA)“A nonresident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty (180) days during any calendar year shall be deemed a”View source · accessed 2026-10-24. A non-resident alien who stays more than 180 days in aggregate in a calendar year is deemed engaged in trade or business and is taxed at the graduated rates. The count does not decide resident alien status, which depends on intention to stay (see residency_test).

Tax year period

1 January to 31 December (as of 2026)^ⓘPwC Worldwide Tax Summaries“The tax year runs from 1 January to 31 December.”View source · accessed 2026-10-24 — Individuals compute income tax on the calendar year. The annual return is generally due on 15 April of the following year.

Residency test

Residence for aliens turns on intention to stay, not on a day count: an expatriate with an indefinite contract can be a resident alien, while one on a defined assignment is generally a non-resident alien engaged in trade or business. Resident citizens are taxed on worldwide income and all aliens only on Philippine-source income. [source]PwC Worldwide Tax Summaries“A resident alien is an individual who is stateless or is a national of another country and who lives in the Philippines with no definite intention as to length of stay, but who is not a mere transient or sojourner.”View source · accessed 2026-10-24

Income tax rates in Philippines

As of 2023, the headline personal income tax rate in Philippines is 35%^ⓘLawphil Project, Republic Act No. 10963 (TRAIN Act)“₱2,202,500 + 35% of the excess over ₱8,000,000”View source · accessed 2026-10-24. The top marginal rate is 35% on taxable income above PHP 8 million, with no other income tax layer found in the sources. Non-resident aliens not engaged in trade or business pay a flat 25% instead.

Pit income brackets

0–35% (as of 2023)^ⓘLawphil Project, Republic Act No. 10963 (TRAIN Act)“Tax Schedule Effective January 1, 2023 and onwards”View source · accessed 2026-10-24 — The TRAIN schedule in force from 1 January 2023 still applies for the 2026 tax year. A bill to lift the tax-free band from PHP 250,000 to PHP 350,000 passed the House Ways and Means Committee on 10 August 2026 but was not enacted in the sources reviewed.

Pit self employed 8 percent option

8% (as of 2026)^ⓘLawphil Project, Republic Act No. 10963 (TRAIN Act)“Self-employed individuals and/or professionals shall have the option to avail of an eight percent (8%) tax on gross sales or gross receipts and other non-operating income in excess of Two hundred fifty thousand pesos (₱250,000)”View source · accessed 2026-10-24 — Self-employed individuals and professionals who are not VAT-registered may elect 8% on gross receipts above PHP 250,000 instead of graduated rates and percentage tax. PwC describes the option for citizens and resident aliens.

Investment income final tax

Final withholding rates on Philippine-source investment income were reset on 1 July 2025 by CMEPA, with bank interest at 20% regardless of tenure. PwC still shows a 15% foreign currency deposit rate and an exemption for long-term deposits for resident aliens, which do not appear in the BIR table, so the official source is used. [source]Bureau of Internal Revenue, Revenue Regulations 21-2025 digest“Interest, yield or any other monetary benefit earned from any currency bank deposit or deposit substitute, trust funds and other similar arrangements regardless of their nature or tenure”View source · accessed 2026-10-24

Fringe benefits tax

35% (as of 2018)^ⓘLawphil Project, Republic Act No. 10963 (TRAIN Act)“Effective January 1, 2018 and onwards, a final tax of thirty-five percent (35%) is hereby imposed on the grossed-up monetary value of fringe benefit furnished or granted to the employee”View source · accessed 2026-10-24 — Fringe benefits given to managerial and supervisory employees bear a final 35% tax on the grossed-up value, paid by the employer. The rate is 25% for non-resident aliens not engaged in trade or business.

Social security sss foreign employees

Foreign employees pay SSS and PhilHealth contributions that employers match (maximum PHP 51,000 a year for tax year 2025 per PwC), and no longer need to join Pag-IBIG. The SSS rate rose to 15% in January 2025, and no 2026 change was found. [source]PwC Worldwide Tax Summaries“The maximum annual social tax payable by a foreign national employee is PHP 51,000 for tax year 2025.”View source · accessed 2026-10-24

Capital gains rates

Listed shares bear a 0.1% stock transaction tax since the July 2025 CMEPA reform, unlisted shares 15% of net gain, and capital asset real property 6% of the higher of price or fair market value. PwC (reviewed July 2026) still shows 0.6% for listed shares, which conflicts with Republic Act 12214, so the law is used. [source]Lawphil Project, Republic Act No. 12214 (CMEPA)“a tax at the rate of one-tenths of one percent (1/10 of 1%) of the gross selling price or gross value in money of the shares of stock sold, exchanged, or otherwise disposed which shall be paid by the seller or transferor.”View source · accessed 2026-10-24

Vat standard rate

12% (as of 2026)^ⓘLawphil Project, Republic Act No. 10963 (TRAIN Act)“a value-added tax equivalent to twelve percent (12%) of the gross selling price or gross value in money of the goods or properties sold, bartered or exchanged”View source · accessed 2026-10-24 — The standard VAT rate is 12%, and VAT registration is required once gross sales or receipts exceed PHP 3 million over 12 months. Individuals below that level may use percentage tax or the 8% income tax option.

Nra not engaged flat rate

25% (as of 2026)^ⓘLawphil Project, Republic Act No. 12214 (CMEPA)“a final tax equal to twenty-five percent (25%) of such income”View source · accessed 2026-10-24 — Non-resident aliens not engaged in trade or business pay a final tax of 25% on gross Philippine-source income, or a lower treaty rate where one applies. This is the category that applies when the 180 day count is not exceeded.

Special tax regimes in Philippines

All aliens, resident or not, are taxed only on income from Philippine sources, and pay for work done in the Philippines counts as Philippine-source wherever it is paid. A non-resident alien is not taxed on compensation for services performed outside the Philippines. [source]Lawphil Project, Republic Act No. 8424 (National Internal Revenue Code of 1997, original text)“(D) An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;”View source · accessed 2026-10-24

Srrv special resident retirees visa

The SRRV is a special non-immigrant visa for people aged 40 and above, with the Classic option needing a visa deposit of USD 15,000 to USD 50,000 depending on age and pension. PRA lists exemption from tax on pensions and annuities among the holder benefits. [source]Philippine Retirement Authority“The Special Resident Retiree’s Visa (SRRV) is a special non-immigrant visa issued by the Bureau of Immigration of the Philippines, under the retirement program of the Philippine Retirement Authority (PRA).”View source · accessed 2026-10-24

Digital nomad visa in Philippines

Yes (as of 2026)^ⓘLawphil Project, Executive Order No. 86, s. 2025“The DFA is hereby authorized to issue Digital Nomad Visas (DNVs) to non-immigrant foreigners who desire to enter and/or stay in the country for a temporary period for the purpose of working remotely using digital technologies, and whose clients or employers are situated outside the Philippines.”View source · accessed 2026-10-24 — Executive Order 86 of 24 April 2025 authorises the DFA to issue a one year, renewable Digital Nomad Visa, but no implementing guidelines, fee list or application route were found on the DFA eVisa portal or the Bureau of Immigration site on 24 October 2026. Treat it as legally created but not confirmed as open for applications.

Nomad visa conditions

Executive Order 86 sets the conditions listed here, including proof of sufficient income earned outside the Philippines, but it names no minimum income amount. Income thresholds quoted by visa agencies do not appear in the Order. [source]Lawphil Project, Executive Order No. 86, s. 2025“c. Must show proof of sufficient income which is generated outside the Philippines;”View source · accessed 2026-10-24

Frequently asked questions

Sources

• Lawphil Project, Republic Act No. 10963 (TRAIN Act) ra2017 / ra_10963_2017.html · law, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / taxes on personal income · big4, accessed 2026-10-24
• Lawphil Project, Republic Act No. 12214 (CMEPA) ra2025 / ra_12214_2025.html · law, accessed 2026-10-24
• Grant Thornton Philippines lets talk tax / new income tax exemption cap tax relief or inflation adjustment · other, accessed 2026-10-24
• Bureau of Internal Revenue, Revenue Regulations 21-2025 digest pdf / RR%20No.%2021 2025%20Digest.pdf · tax_authority, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / income determination · big4, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / other taxes · big4, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / significant developments · big4, accessed 2026-10-24
• Social Security System compulsory coverage · other, accessed 2026-10-24
• Lawphil Project, Republic Act No. 8424 (National Internal Revenue Code of 1997, original text) ra1997 / ra_8424_1997.html · law, accessed 2026-10-24
• Philippine Retirement Authority SRRVisa · other, accessed 2026-10-24
• Lawphil Project, Executive Order No. 86, s. 2025 eo2025 / eo_86_2025.html · law, accessed 2026-10-24
• KPMG GMS Flash Alert 2025-088 gms flash alert / flash alert 2025 088.html · big4, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / residence · big4, accessed 2026-10-24
• PwC Worldwide Tax Summaries individual / tax administration · big4, accessed 2026-10-24

Explore more

• Not sure you count as resident? Am I a tax resident of Philippines?
• Working remotely? Digital nomad taxes in Philippines — the visa, when you become tax resident, and your effective rate.
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• Planning your days in Philippines? Track them with the free 183 Days residency tracker — it checks your travel log against verified thresholds like the ones on this page.

When to talk to an advisor

This page maps Philippines’ general rules — it cannot weigh your treaty position, your family and asset ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Philippines (and in your home country) review your situation before you act.