Professional Documents
Culture Documents
What Are The Kinds of Taxpayers
What Are The Kinds of Taxpayers
profession, in the Philippines, and those not engaged in trade or business, or practice
of profession in the Philippines.
Resident Citizen
An individual is a citizen of the Philippines by definition of the
Constitution of the Philippines. Under the Constitution, an individual maybe a citizen
at birth (i.e., one whose father or mother is a citizen of the Philippines), or may
become a citizen of the Philippines sometime after birth (i.e., one who is naturalized
in accordance with the law). Philippine citizenship maybe lost or reacquired in the
manner provided by law.
Non-resident Citizen
Who is a non-resident citizen? He is a citizen who:
a. Establishes to the satisfaction of the Commissioner of Internal Revenue the fact of
his physical presence abroad with a definite intention to reside therein; or
b. Leaves the Philippines during the taxable year to reside abroad:
1. as an immigrant; or
2. For employment on a permanent basis;
3. For work and derives income from abroad and whose employment thereat
requires him to be physically abroad most of the time during the taxable year.
c. Was previously a nonresident citizen and who arrives in the Philippines during the
taxable year in which he arrives in the Philippines with respect to his income derived
from sources abroad until the date of his arrival in the Philippines.
Resident Alien
A resident alien is an individual whose residence is within the Philippines
and who is not a citizen thereof. An individual whose residence is within the
Philippines and who is not a citizen thereof is a non-resident alien. What makes an
alien a resident or non-resident alien is his intention with regard to the length and
nature of his stay.Thus:
One who comes to the Philippines for a definite purpose which in its very
nature may be promptly accomplished is not a resident citizen;
One who comes to the Philippines for a definite purpose which in its very
nature would require an extended stay, and to that end, makes his home
temporarily in the Philippines, becomes a resident.
Length of stay is indicative of intention. An alien who shall have stayed in
the Philippines for more than one year by the end of a calendar year is a resident alien.
An alien who qualified as a resident alien shall have a continuing status of
a resident alien until he abandons his residence. Abandonment of residence requires
departure from the Philippines and intention not to return.
Non-resident Alien
Who is a non-resident alien engaged in business or practice of profession
in the Philippines? By provision of law, an alien who shall come to the Philippines
and stay for an aggregate period of more than one hundred eighty days during a
calendar year shall be considered anon-resident alien in business, or in the practice of
profession, in the Philippines. The only criterion is length of stay.
1. Persons subject to the individual income tax
For income tax purposes, individual taxpayers are classified into:
a. Citizen
(1) Resident citizen - is a citizen of the Philippines who has a permanent home or place of abode in
the Philippines to which he/she intends to return whenever he/she is absent for business or pleasure.
(2) Nonresident citizen - is a citizen of the Philippines who establishes the fact of his/her physical
presence abroad with the definite intention to reside therein and shall include any Filipino who leaves
the country as immigrant (one who leaves the Philippines to reside abroad as an immigrant for which
a foreign visa as such has been secured), permanent employee ( one who leaves the Philippines to
reside abroad permanently for regular employment), and contract worker (one who leaves the
Philippines on account of a contract of employment which is renewed from time to time during the
taxable year as to require physical presence abroad for an aggregate period of one hundred eighty
(180) days or more during such taxable year). 2
b. Alien
(1) Resident alien - is an individual who is not a citizen of the Philippines but whose residence is
within the Philippines.3
(2) Nonresident alien - is an individual who is not a citizen of the Philippines and whose residence is
not within the Philippines.
A nonresident alien is deemed engaged in trade or business in the Philippines if he/she has stayed in
the Philippines for an aggregate period of more than 180 days during any calendar year.5