Chris is a Filipino immigrant living in the United States for more than 15 years.

He is retired and he came

back to the Philippines as a balikbayan. Every time he comes to the Philippines, he stays here about a
month. He regularly receives a pension from his former employer in the United States, amounting to
US$2,000 a month. While in the Philippines, with his pension pay from his former employer, he
purchased three condominium units in Makati which he is renting out for P25,000 a month each. Does
the US$2,000 pension become taxable because he is now in the Philippines?

a. Yes, income received in the Philippines by the non-resident citizens is taxable

b. Yes, income received in the Philippines or abroad by non-resident citizen is taxable.

c. No, income earned abroad by non-resident citizens are not taxable in the Philippines.

d. No, the pension is exempt from taxation being one of the exclusions from gross income.

• Answer: C

If he is a non-resident alien not engaged in trade or business, disregarding professional business data,
the total income tax that should be withheld from his income is:

a. P50,000 c. P31,500

b. P18,500 d. P338,500

• Answer: A

• Income Tax Due = Salaries of P200,000 x 25% = P50.000 • Regardless of the taxable period (before or
after TRAIN Law)

If he is a Special Alien Employee, disregarding professional and business data, the total income tax that
should be withheld from his income assuming the taxable year is 2017 should be:

a. P18,500 c. P11,500

b. P30,000 d. None

• Answer: B

• Income Tax Due = Salaries of P200,000 x 15% = P30,000

• Prior to 2018, Special Alien Employees are taxable at 15% on their compensation income.

• Beginning January 1, 2018, Special Employees are already subject to basic income tax on their

compensation income.