Kinds of Taxpayers
What are the kinds of taxpayers?
Taxpayers can be classified in to two major categories – individual and corporation. These major categories can be further divided in different subcategories.
What are the subcategories for individual taxpayers?
Individual taxpayers can be classified as either a citizen or an alien. A citizen can further be classified as either a resident citizen or an non-resident citizen. There are three types of non-resident citizens: immigrants, employees of a foreign entity on a permanent basis and overseas contract workers or OCWs.
Aliens are either resident of nonresident. Nonresident aliens are further divided into engaged or not engaged in trade or business in the Philippines. If an alien has an aggregate period of stay here in the Philippines for more than 180 days he shall be considered as a “nonresident alien doing business in the Philippines.”
From what sources of income are resident citizens taxable under Philippine law?
A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines.
From what sources of income are nonresident citizens taxable under Philippine law?
A nonresident citizen is taxable only one income derived from sources within the Philippines. Thus an immigrant, employee of a foreign entity on permanent basis and OCW will be taxed only on income derived from the Philippines. His income from the country where he is working will not be taxed in our country.
From what sources of income are aliens taxable under Philippine law?
An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines.
What are the kinds of corporation as taxpayers?
Corporations under Philippine tax law can be classified into domestic, foreign and partnership. A foreign corporation is either resident foreign or non-resident foreign corporation. A resident foreign corporation is a foreign corporation engaged in trade or business in the Philippines. A non-resident foreign corporation is a foreign corporation not engaged in trade or business within the Philippines but deriving income from sources in the Philippines.
A partnership can be either a taxable or an exempt partnership. Partnerships that are exempt from taxation are general professional partnerships and joint venture or consortium undertaking activity, or engaged in petroleum operations with operating contract with the government.
From what sources of income are domestic corporations taxable under Philippine law?
A domestic corporation is taxable on all income derived from sources within and without the Philippines.