If you do decide to retire here you wont be taxed on your pension.Originally Posted by imagine
does anyone know if having the 13a . affects your right to uk state pension ?
Here is the list of countries that have a social security agreement with the UK.
http://www.dwp.gov.uk/international/...-of-countries/
Last edited by jake; 20th February 2013 at 10:30. Reason: add on
I owe everyone an apology for giving out duff information. I AM wrong in my interpretation as I discovered when my Disclosure was returned by the Embassy today. They sent with it, a bulletin highlighting what I should have done. This link tells you what to do. http://www.fco.gov.uk/en/about-us/wh...-How-to-apply/
Sincere apologies to anyone who have already sent postal orders to the Embassy. All is not lost as you can cash them in yourself.
Bill
thanks
Hi Bill , Excellent information,thank you,i'm still waiting on getting my police check back in the post so what you say now makes things clear for me.
Hi Jake,Bill,
The reason you are getting confused about what people are telling you is some things can be written in law in the Philippines but not followed. Gets easier with time to understand the in's and out's.
The balikbayan route is not intended to be for people staying here on a permanent basis. The original purpose was for former citizens to return home without having to have a visa.
It is classed as temporary visitors visa and you would be required to have a return ticket prior to admission into the Philippines. It doesn't have to be dated as all they want to see is the person intends to leave the country. In theory all you need is a short trip to another asian country every year but they 'may' refuse your request one day.
The local BOI in Dipolog wont be able to process a 13a application. If you check the link below it will tell you where it can be done.
http://immigration.gov.ph/index.php?...=115&Itemid=61
If you apply in the Philippines it will involve 2 stages. First a years probationary period then you have to convert it to permanent. From what i have heard recently each stage would involve about 3 trips to immigration. Was at least 6 when i did mine in the 90's
http://immigration.gov.ph/index.php?...=115&Itemid=61
Good luck with which ever route you decide to take..
Thanks for the info and the links. I'll get there eventually!
Bill
It depends on the pension(s) you have and whether you have a BIR TIN number or not.
Very important.
But in principle yes, correct.
why get a 13a ? if your married it only lasts for a year and takes about 3 months to get and the money to you have to go manila for this long waiting why not get a ticket to another country with wife couple days then go back phil your both togeather so would get to stay for 1 year no cost as your married i just got back from phil 2 months there i was going for a 13a but waiting 3 months and you still have to pay visa extention which is more than a ticket to say macau for you both
Hawk..
You are wrong. The visa we are talking about is PERMANENT if applied for in the UK.
Its temporary for one year if applied for in the R.P ..After that year, you can apply to make it a permanent visa.
Please try to be careful of publishing facts when in fact they are utter TOSH!!
Cheers,
Fred.
BIR TIN number ?It depends on the pension(s) you have and whether you have a BIR TIN number or not.
Very important.
But in principle yes, correct.tax id no/? where is this found will it be on a tax return or any tax papers?
A BIR tin number is a kind of Philippine tax code,I think..BIR TIN number ?
Not sure what the tax rules are for dual citizens but I think they only pay tax on money earned here in the R.P..
I dont think that their UK pension is taxable here..In fact Im sure its not.
i read that claiming uk pension while in philippines, you have the choice for it to be taxable in uk or in philippines,, in philippines pension tax i read is zeroA BIR tin number is a kind of Philippine tax code,I think..
Not sure what the tax rules are for dual citizens but I think they only pay tax on money earned here in the R.P..
I dont think that their UK pension is taxable here..In fact Im sure its not.
ok sorry must have missed the part permernt
Monies received from outside the Philippines is not taxed here.
In the words of Benjamin Franklin "In this world nothing can be said to be certain, except death and taxes."A BIR tin number is a kind of Philippine tax code,I think..
Not sure what the tax rules are for dual citizens but I think they only pay tax on money earned here in the R.P..
I dont think that their UK pension is taxable here..In fact Im sure its not.
Make no mistakes UK pensions ARE taxable in Philippines.
Unless you make special arrangements to take advantage of existing agreements between Philippines and UK, you could expect to be taxed twice.
If you are resident in the Philippines and you let HMRC know that your pension will be taxed in your country of residence, the tax in the UK will not be applied.
To do this you need make a claim for relief so that HMRC will authorise payment of your pension without deduction of tax.
You will need to obtain a TIN (Taxpayer Identification Number) from BIR and send this to HMRC as evidence that you will be subject to tax in Philippines.
Here's the trick; currently income from pensions are taxed at a rate of 0% in Philippines.
Long may that continue !!!!
Not all pensions can be included in the agreement, so be sure to take care to allocate your UK personal allowances correctly and minimise the tax burden.
Enjoy!
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.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
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!
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
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