Monies received from outside the Philippines is not taxed here.
Monies received from outside the Philippines is not taxed here.
i wouldnt think uk state pension on its own would be enough to go over the tax allowance
Well no the UK state pension will be far below the personal allowances.Originally Posted by imagine
i wouldnt think uk state pension on its own would be enough to go over the tax allowance
The benefits of the agreement only come into play when the total pension income is higher than the personal allowance.
As I mentioned, not all pensions fall into that agreement. Some government and local authority pensions are excluded. In which case, use those excluded pensions up as your personal allowance. Simples.
I retire in about 4 weeks and my UK state pension + 2 occupational pensions will take me over the age related personal allowance by around £1200. I have no idea how much tax I would have to pay on that amount.
But, if I obtain a TIN from the BIR (who they?) and send that to HMRC I won't have to pay tax in the UK. Sounds OK to me!
BIR= Bureau of Internal Revenue (Tax Office)
As said, depends who the pensions are with.
You'll need to prove residency also. Not tourist status.
13a
Correct
Pensions payed out of public funds in the UK are exempt from Philippine tax.
http://www.hmrc.gov.uk/manuals/dtmanual/DT15367.htm
Not sure how much they tax private pensions in the UK. If you were to be taxed here you would have to register with the BIR main office in Quezon city as they deal with foreign taxes. You never know it could be less than you pay in the UK.
Last edited by jake; 23rd February 2013 at 06:59. Reason: add on
Yes, but also excluded from the DTA.
At the risk of going off-topic I think it might be helpful to post some concise clarification.
All Double Taxation Treaties/Reciprical Agreements are highly complex and dealing with them is a specialist area for both UK and Philippines tax authorities.
The UK has Double Taxation Treaties with more than 100 countries.The Philippines deals with Double Taxation Treaties with more than 30 countries.
Each treaty has different conditions.
But in principle and specifically for UK nationals resident in Philippines:-
If your pension is a 'public funded (government) pension' (ie: Military, Civil Service and Most Local Authority paid pensions) then it is NOT included in the Tax Treaty with Philippines and MUST be Tax Coded and Tax Deducted at source in UK. Period.
If your pension is a UK State Pension (public funded) then it is also NOT included in the Tax Treaty with Philippines and MUST be Tax Coded and Tax Deducted at source in UK. Period.
If your pension is a non-governmental pension, most often referred to as a Private Pension or Occupational Pension, then this IS INCLUDED in the Tax Treaty with Philippines and CAN be Tax Coded at source in UK as 'paid net of income tax' and be treated under the Philippine Tax regime.
Means zero tax paid in UK and subject to Philippine Tax Regime (which is currently rated 0% on private pensions)
All pension providers in UK are required to apply a tax code on any payments made.
The tax codes are issued by HMRC. The pension provider is prohibited from making any payments to you without a code.
Some codes will mean tax payable is zero.
National Insurance is not paid on pension payments.
The State Pension is an exception to this as it is paid Gross to you by DWP. DWP cannot deduct tax at source.
Your state pension payments will therefore be deducted from your personal allowances, thereby reducing the threshold for 'free-pay' on any other income (ie Occupational Pension)
Having the Private/Occupational pension tax liabilities transfered to Philippines can result in very significant benefits.
Regardless of where you live, you are liable to UK tax coding on any UK sourced income, unless with a double taxation agreement country you can transfer the tax responsibility/liability to the local Tax revenue authority.
Sorry for the off-topic posting but just want to be sure all the relevent facts are made.
Was very informative and not off topic as somebody did ask.
Can you advice me on moving money from my Swiss accounts
Last edited by jake; 24th February 2013 at 04:34. Reason: still learning how to use the quote reply function
Whilst living in the Philippines, my pension was payed normally in to my UK bank and I used my internet banking to transfer enough each month to fulfil my requirements into my Philippine bank, never had any problems at all, the charge to transfer was £5 each time. By using my Philippine bank card at the cash machines there were no charges at all at most of the banks including Robinsons. Another tip, where possible try and use cash most of the time and always ask for discounts, you'll be suprised how much you will save, never be afraid to barter because the staff in the stores think that if they give you a decent discount they think you will always come back to them!
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