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TAX on Dividends from Foreign Sources

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1TAX on Dividends from Foreign Sources Empty TAX on Dividends from Foreign Sources Tue Apr 03, 2018 1:06 pm

makerdude


Arresto Menor

I have a few question which is kinda similar in nature.


Question1:

I'm a Filipino and a resident of the Philippines. If I buy stocks of US companies, and get dividends from them, do I need to pay Philippine taxes for that dividend income?


Question2:

Same case as above but I setup my own US company. Let's say XYZ LLC. The business is an online store and there is no physical store in the US. I operate the business online and I login to manage that website/business here from the Philippines.

Eventually, earnings from the company will end up in my Philippine bank account. Do I need to pay taxes here in the Philippines for that earnings?

So it's kinda similar to question1 but question1 is buying "ownership" thru shares of stocks like facebook, apple, netflix, however the second case is that I own the company.

attyLLL


moderator

q1 - if you paid a tax in the US, then it is not taxable here but you will need to provide proof that the tax was paid

q2 - i'm not a tax expert, but in my opinion that would be considered doing business here in the PH. nevertheless, if the income was already taxed in the US then I would think the same principle will apply that it would no longer be taxed here

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