Tax Guide for US Expats Living and Working in Philippines
Who Is Liable For Income Taxes in Philippines
Resident citizens are subject to tax on worldwide income. Nonresident citizens, resident aliens and nonresident aliens are subject to tax on income from Philippine sources.
Residence is determined by the length and nature of an individual’s stay in the Philippines. A person who comes to the Philippines for a definite purpose that is promptly accomplished is not deemed to be resident, but a person who comes for a definite purpose requiring an extended stay exceeding two years risks being considered resident. Aliens who reside in the Philippines with the intention to remain permanently are considered resident. Aliens who acquire residence in the Philippines remain residents until they depart with the intention of abandoning that residence.
Nonresident aliens are classified as either engaged or not engaged in trade or business in the Philippines. A nonresident alien who stays in the Philippines for more than a total of 180 days during any calendar year is deemed to be engaged in trade or business in the Philippines; any other nonresident alien is deemed to be not engaged in trade or business in the Philippines.
In a ruling issued by the Bureau of Internal Revenue (BIR), the BIR stated that in applying the above rules, all the months in a calendar year covered by the period of assignment of the non-resident alien individual must be considered in evaluating if he or she exceeded the 180-day period. If an expatriate’s stay in the Philippines exceeds the 180-day period during any calendar year, he or she becomes a nonresident alien doing business in the Philippines for the entire duration of his or her Philippine assignment. As a result, if an expatriate stays in the Philippines for more than 180 days in any calendar year, he or she is considered a nonresident alien engaged in business and taxed at the graduated rates of 5% to 32%, not only during the year that his or her stay in the Philippines exceeds the 180-day period, but also during the other years of assignment, even if such stay did not exceed 180 days (BIR Ruling DA-056-05).
Income subject to tax. Gross income includes compensation, income from the conduct of a trade, business or profession, and other income, including gains from dealings in property, interest, rent, dividends, annuities, prizes, pensions and partners’ distributive shares.
The following income items are excluded from gross income (the Tax Code refers to these items as “exclusions”) and are, consequently, exempt from taxation:
- 13th month pay, productivity incentives, Christmas bonuses and other benefits, up to an aggregate of P 30,000
- Proceeds of life insurance policies
- Amounts received by an insured as a return of premium
- Gifts, bequests and devises
- Compensation for injuries or sickness from accident or health insurance or under the Workers’ Compensation Acts
- Income exempt under treaty provisions
- Retirement benefits received pursuant to certain laws or under a reasonable private benefit plan
- Amounts received as a consequence of separation from service as a result of death, sickness, physical disability or any cause beyond the control of the employee
- Social security benefits, retirement gratuities and other similar benefits received by resident or nonresident citizens of the Philippines or aliens who come to reside permanently in the Philippines from foreign government agencies and other public or private institutions
- Payments or benefits due or to become due to individuals residing in the Philippines under U.S. laws administered by the U.S. Veterans Administration
- Benefits received from or enjoyed under the social security systems
- Prizes and awards in recognition of religious, charitable, scientific, educational, artistic, literary or civic achievement, as well as awards in authorized sports competitions
- Mandated contributions to the government and private social security systems and housing fund
- Gains from the sale of bonds, debentures or other certificates of indebtedness with a maturity of longer than five years
- Gains from redemptions of shares in a mutual fund
The taxation of various types of income is described below.
Employment income. Employment income includes all remuneration for services performed by an employee for his or her employer under an employer-employee relationship. The name by which compensation is designated is immaterial. It includes salaries, wages, emoluments and honoraria, allowances, commissions, fees including director’s fees for a director who is also an employee of the firm, bonuses, fringe benefits, taxable pensions and retirement pay and other income of a similar nature. Emergency cost-of-living allowances received by employees are also included in their compensation income.
Employment income received for services provided in the Philippines is subject to tax in the Philippines regardless of where the compensation is paid. Remuneration for services remains classified as compensation even if paid after the employer-employee relationship is ended.
Taxable employment income equals employment income less exclusions, personal and additional exemptions and allowable deductions for health insurance premiums (see Deductions).
Nonresident aliens not engaged in trade or business in the Philippines as well as alien individuals employed by regional or area headquarters and regional operating headquarters of multi-national companies, offshore banking units, and petroleum service contractors and subcontractors are taxed on their gross income without the benefit of the personal and additional exemptions.
Fringe benefits are any goods, services or other benefits granted in cash or in kind by employers to employees (except rank-and-file employees, as defined) such as, but not limited to, the following:
- Housing
- Expense account
- Any vehicles
- Household personnel, such as maids, drivers and others
- Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted
- Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations
- Expenses for foreign travel
- Holiday and vacation expenses
- Educational assistance to the employee or his dependents
- Life or health insurance and other nonlife insurance premiums or similar amounts in excess of the amounts allowed by law
Under the tax law, the following fringe benefits are exempt from tax:
- Fringe benefits that are authorized and exempt from tax under special laws
- Contributions of employers for the benefit of employees to retirement, insurance and hospitalization benefit plans
- Benefits granted to the rank-and-file employees (as defined), regardless of whether they are granted under a collective bargaining agreement
- Deminimis benefits (see below)
- Fringe benefits required by the nature of, or necessary to, the trade, business or profession of the employer
- Fringe benefits granted for the convenience or advantage of the employer
Deminimis benefits are items furnished or offered by employers to their employees that are of relatively small value and are offered or furnished by the employers as a means of promoting the health, goodwill, contentment, or efficiency of their employees.
De minimis benefits are expressly exempt from income tax as well as from fringe benefits tax (FBT).
The following are deminimis benefits:
- Monetized unused vacation leave credits of private employees not exceeding 10 days during the year and the monetized value of the leave credits paid to government officials and employees
- Annual medical benefits not exceeding P 10,000
- Employees’ achievement awards, subject to certain conditions
- Gifts given during Christmas and major anniversary celebrations not exceeding P 5,000 per employee per year
- Daily meal allowance for overtime work not exceeding 25% of the basic minimum wage
- Rice subsidy of P 1,500 or 1 sack of 50 kilograms of rice per month amounting to not more than P 1,500
- Uniform and clothing allowance not exceeding P 4,000 per year
The above list is exclusive. All other benefits granted by employers that are not included in the above list are not considered deminimis benefits, and accordingly are subject to income tax, withholding tax on compensation, and FBT (Revenue Regulations 5-2011).
Fringe benefits are subject to FBT if the cost of the benefit is borne or claimed as expense by the Philippine entity and if the recipient of the benefit is a non-rank-and-file employee. If the cost is not borne by the Philippine entity or if it is received by a non-rank-and-file employee, the benefit is classified as compensation income subject to income tax. As mentioned above, deminimis benefits are expressly exempt from both FBT and income tax. With respect to the other exemptions, the rules state that the exemptions relate to FBT. However, in view of the nature of these exempt benefits, it may be argued that the benefits are also exempt from income tax
Business income. Gross income from the conduct of a trade or business or the exercise of a profession may be reduced by certain allowable deductions and by personal and additional exemptions (see Deductions). However, an individual who has both compensation and business income may claim personal and additional exemptions only once.
Resident or local suppliers of goods and services, including non-resident aliens engaged in trade or business in the Philippines, are subject to a 1% creditable expanded withholding tax on their sales of goods and to a 2% creditable expanded withholding tax on their sales of services, if the payer is among the top 20,000 private corporations as classified by the BIR. Expanded withholding tax is a withholding tax that is prescribed for certain payers and that is creditable against the income tax due of the payee for the relevant tax quarter or year.
Professional fees are subject to a 15% creditable expanded withholding tax if such fees for the year exceed P 720,000. Otherwise, the rate is 10%.
Directors’ fees. Directors’ fees derived by individuals who are employees of the same company are taxed as income from employment and are subject to creditable withholding tax on wages.
Directors’ fees derived by individuals who are not employees of the same company are included in the recipients’ business income and are subject to a creditable withholding tax. The rate of the withholding tax is 15% if the gross income for the current year exceeds P 720,000. Otherwise, the rate is 10%. Directors’ fees derived by nonresident aliens deemed to be not engaged in a trade or business are subject to a final withholding tax at a rate of 25%.
Investment income. In general, interest on peso deposits and yields, or any other monetary benefit derived from deposit substitutes, trust funds and similar arrangements, is subject to a final 20% withholding tax. However, interest on certain long-term deposits or investments evidenced by qualifying certificates is exempt from the final 20% withholding tax. Final tax is imposed at rates ranging from 5% to 20% on the income from long-term deposits if the investment is withdrawn before the end of the fifth year. Interest received by residents on foreign-currency deposits is subject to a final 7.5% withholding tax. Interest received by nonresident individuals on foreign-currency deposits is exempt from tax.
Cash or property dividends actually or constructively received by citizens and resident aliens from domestic corporations, as well as a partner’s share in the after-tax profits of a partnership (except a general professional partnership), are subject to final withholding tax at a rate of 10% in 2000. Nonresident aliens engaged in a trade or business in the Philippines are subject to final withholding tax on these types of income at a rate of 20%. For nonresident aliens not engaged in a trade or business in the Philippines, investment income is generally taxed at a rate of 25%, except for gains from sales of real estate and sales of shares of domestic corporations.
Rental income is considered business income and is taxed at the rates.
Taxation of employer-provided stock options. In general, employer-provided stock options are taxable to the employee as additional compensation at the time the option is exercised. The excess of the fair market value of the stocks over the option price (this excess is known as the “spread”) is taxable income. If the employee is a resident Philippine national, the additional income, together with income from other sources, is subject to the regular graduated tax.
Income realized by a resident alien individual from the exercise of employer-provided stock options is taxed at the same graduated rates as those for resident citizens. A nonresident alien not engaged in a trade or business in the Philippines is subject to a flat tax at a rate of 25% on such income. Alien individuals are subject to Philippine income tax on their Philippine-source in-come only; therefore, only income derived from stock options related to services rendered in the Philippines is taxable in the Philippines.
However, a BIR ruling classified the spread as a taxable fringe benefit subject to FBT (BIR Ruling DA-255-05). This ruling was based primarily on the fact that the stock option plan is made available to selected senior personnel of the company (consisting primarily of managers, directors and heads of the corporate divisions and groups). Under the ruling, a stock option may be considered a taxable fringe benefit subject to FBT if it is granted to selected individuals occupying managerial and supervisory positions. FBT is payable by the employer. The ruling did not contemplate a situation in which the stock option is granted to all employees, including those who are not at the managerial level. As a result, it is possible that a different ruling will be issued under a different set of facts regarding a stock option plan.
BIR Ruling No. DA-152-2007 is almost of the same tenor. In this ruling, the BIR held that income from a Restricted Stock Unit Plan, under which plan, shares or the cash equivalent is transferred to selected executives, is considered to be a fringe benefit subject to FBT.
However, the BIR also issued BIR Ruling No. DA-353-2007, which relates to stock purchase plans and share schemes. In summary, this ruling declares that for the purchase of the shares under a stock purchase plan offered to all employees, the discount in the purchase price of the shares is considered to be compensation income to the individual and is subject to income tax.
According to the BIR, the discount is a realized benefit actually received by the employee-participant on the purchase of the shares. If the employee-participant purchased the shares in the market, he or she would have been required to pay the prevailing market price for the shares. Consequently, the discount is considered to be compensation subject to income tax.
The BIR arrived at the same ruling in BIR Ruling No. DA-402-2007. It stated that because the fair market value of shares delivered at the end of the vesting period for a restricted stock award was linked to services rendered by the senior employees during the vesting period, the value of such shares is considered compensation.
Capital gains and losses. In general, capital gains and losses are included in an individual’s regular taxable income and are subject to tax at the graduated rates. The gain is the excess of the amount realized from the disposal of the asset over the adjusted basis. If the asset is held for 12 months or less prior to disposal, the entire gain or loss is reported. For assets held longer than 12 months, 50% of the gain or loss is reported. The holding period rules do not apply to capital gains derived from the sale of real property in the Philippines or shares of stock in a domestic corporation (see below).
Capital losses are deductible only to the extent of capital gains. Losses carried over are treated as short-term capital losses. Losses incurred from wash sales of stocks or securities are not deductible, unless incurred by a dealer in the ordinary course of business. This rule does not apply to shares of stock in a domestic corporation or to sales of real property described below.
A final tax of 6% is imposed on capital gains derived from transfers of real property located in the Philippines. The tax is based on the higher of the gross sales price and the fair market value.
Capital gains derived from the sale of shares in unlisted domestic corporations are taxed at a rate of 5% on the first P 100,000 of the gain and at a rate of 10% on the excess over P 100,000. The amount of the taxable gain is the excess of the sale price over the cost of the shares.
Gains derived from the sale of listed shares are exempt from capital gains tax. However, a percentage tax (stock transaction tax) is imposed at a rate of 0.5% on the gross selling price of the shares.
Gains derived by resident citizens from the sale of shares in foreign corporations are taxed as capital gains, subject to the regular income tax rates.
Deductions
Personal exemption. Citizens and resident aliens are allowed a basic personal exemption amounting to P 50,000 for each individual taxpayer.
For married individuals, if only one of the spouses is deriving gross income, only such spouse is allowed the personal exemption.
Additional exemption. An additional exemption of P 25,000 is allowed for each “dependent” up to a maximum of 4. For this purpose, a “dependent” is the following:
- A legitimate, illegitimate or legally adopted child who is not more than 21 years of age, unmarried and not gainfully employed and is chiefly dependent on and living with the taxpayer
- Regardless of age, a legitimate, illegitimate or legally adopted child who is incapable of self-support because of a mental or physical defect
For married individuals, the additional exemption for dependents may be claimed by only one of the spouses. For legally separated spouses, additional exemptions may be claimed only by the spouse who has custody of the child or children, provided that the total amount of additional exemptions that may be claimed by both spouses may not exceed the maximum additional exemptions mentioned above.
A nonresident alien engaged in a trade or business in the Philippines is entitled to a personal exemption of an amount equal to the exemptions allowed under the income tax law of the country where he or she is a subject or citizen, to citizens of the Philippines not residing in that country; however, the exemption may not exceed the amounts listed above. He or she may not claim additional exemptions.
Deductible expenses and standard deductions. Individuals with only compensation income may deduct from their gross compensation health insurance premiums, of up to P 2,400 per year if the family’s aggregate income is P 250,000 or less for the tax year.
In addition to personal and additional exemptions and deductions for health insurance premiums, individuals who earn income from a trade, business or the practice of a profession may deduct expenses incurred in connection with their trade, business or profession subject to Philippine income tax. These expenses include ordinary and necessary business or professional expenses, interest expense, taxes, losses, bad debts, depreciation, charitable contributions, contributions to a pension trust, and research and development. Alternatively, such taxable individual (except a nonresident alien not engaged in trade or business) may elect a standard deduction of 40% of gross income instead of the itemized deductions.
Rates. Net taxable compensation and business income of resident and nonresident citizens, resident aliens, and nonresident aliens engaged in a trade or business are consolidated and taxed.
Aliens employed by regional or area headquarters (RHQs) and regional operating headquarters (ROHQs) of multinational companies, offshore banking units and petroleum service contractors and subcontractors, regardless of their residency, are subject to tax at a preferential rate of 15% on gross income. In addition, the same tax treatment applies to Filipinos employed and occupying the same position as the aliens employed by these entities. Such Filipino employees may elect to be taxed at the 15% rate on gross income or at the graduated rates of 5% to 32% on net taxable income, even if the employees are paid less than the equivalent of US$12,000 a year. (Under Article 59 of Executive Order (EO) No. 226, alien employees of RHQs and ROHQs in the Philippines who are issued a multiple-entry special visa must work exclusively for the Philippine RHQ or ROHQ and must be paid the equivalent of US$12,000 per year. Republic Act No. 8756, which amended EO No. 226, provides that the same tax treatment applies to Filipinos employed in the same positions as aliens employed by multinational companies, but does not mention that Filipinos must be paid at least US$12,000 per year.)
Under Revenue Regulations 11-2010, Filipinos exercising the option to be taxed at a 15% preferential rate for occupying the same managerial or technical position as that of an alien employed in an ROHQ or RHQ must meet all the following requirements:
- Position and Function Test: The employee must occupy a managerial position or technical position and must actually be exercising such managerial or technical functions pertaining to such position.
- Compensation Threshold Test: To be considered a managerial or technical employee for income tax purposes, the employee must have received, or is due to receive under a contract of employment, gross annual taxable compensation of at least P 975,000 (regardless of whether this is actually received). However, if a change in compensation occurs and, as a result, such employee subsequently receives less than the compensation threshold stated above for the calendar year when the change becomes effective, the employee becomes subject to the regular income tax rate.
- Exclusivity Test: The Filipino managerial or technical employee must be exclusively working for the RHQ or ROHQ as a regular employee and not as a consultant or contractual person. Exclusivity means having one employer at a time.
The compensation threshold was adjusted on 31 December 2010 and will be adjusted every three years thereafter.
In calculating the FBT, the monetary value of the benefit is taken into consideration. The monetary value depends on the type of benefit granted, as well as on the manner in which the benefit is extended to the employee. For example, if the employer purchases a motor vehicle for the use of the employee (who is assumed to be a non-rank-and-file employee), the value of the benefit is the acquisition cost of the vehicle. The monetary value of the fringe benefit is the entire value of the benefit (meaning the entire acquisition cost). If the employer leases and maintains a fleet of motor vehicles for the use of the business and the employees, the value of the benefit is the amount of rental payments for motor vehicles not normally used for sales, freight, delivery, service and other non-personal uses. The monetary value of the benefit is 50% of the value of the benefit (rental payment). The BIR has issued specific regulations on the treatment of fringe benefits.
After the monetary value is determined, it is then grossed up and subjected to the applicable FBT rate.
Although the FBT is a tax on the employee, the actual payment of the tax is borne by the employer. This method is used to ensure that all benefits received by employees are subject to tax. During the deliberations of the Philippine Congress regarding the adoption of the FBT, it noted that many executives were able to avoid taxation by being paid fringe benefits rather than straight salaries. The collection of FBT from employers is intended to plug this loophole.
For nonresident aliens engaged in a trade or business in the Philippines, dividends, shares in profits of partnerships taxed as corporations, interest, royalties, prizes in excess of P 10,000 and other winnings are subject to final withholding tax at a rate of 20% of the gross amount. Royalties on musical compositions, books and other literary works are subject to a final withholding tax at a rate of 10%. Nonresident aliens are taxed on capital gains derived from sales of real property or shares in domestic corporations.
Capital gains and losses. Nonresident aliens not engaged in a trade or business in the Philippines are subject to a final withholding tax of 25% on gross income, including fringe benefits, from all sources in the Philippines. However, capital gains derived from sales of real property or from sales of shares in domestic corporations are subject to the same tax rates imposed on citizens and resident aliens.
Relief for losses. Under certain circumstances, self-employed persons may carry forward business losses for three years, unless a 25% change in the ownership of the business occurs. Carry-backs are not permitted.
B. Estate and gift taxes
Estate tax. An estate tax is imposed at graduated rates ranging from 5% to 20% on the transfer of a decedent’s net estate valued in excess of P 200,000. Citizens, regardless of whether resident at the time of death, and resident aliens are taxed on their world-wide estates
For estate tax purposes, only that part of a nonresident alien decedent’s estate located in the Philippines is included in the taxable estate. Under specified conditions, deductions may be permitted for certain items, including expenses, losses, indebtedness, taxes and the value of property previously subject to estate or gift tax or of property transferred for public use.
The net estate is computed by deducting the following amounts from the total value of a decedent’s real or personal, tangible or intangible, property, wherever situated:
- Allowable expenses, losses, indebtedness and taxes
- The value of property transferred for public use
- The value of property subject to estate or gift tax (subject to special rules) within five years prior to a decedent’s death
- The value of the family home, not exceeding P 1 million
- The amount received from the decedent’s employer as a result of the death of the employee
In addition, estates of residents or citizens are entitled to a standard deduction of P 1 million as well as a deduction of up to P 500,000 for medical expenses incurred by the decedent within one year prior to death.
To prevent double taxation of estates, the Philippines has concluded an estate tax treaty with Denmark.
Gift tax. Residents and nonresidents are subject to gift tax, which is payable by the donor on total net gifts made in a calendar year. Citizens, regardless of whether resident at the time of a gift, and resident aliens are subject to gift tax on worldwide assets. Nonresident aliens are subject to gift tax on their Philippine assets only.
C. Social security
Contributions. All individuals working in the Philippines must pay social security contributions. The employee’s contribution is approximately 3.39% of salary and is withheld by the employer.
The employer’s contribution is approximately 7.39% of employees’ salaries. Self-employed persons must be covered. The minimum monthly salary subject to social security contributions is P 1,000. The maximum monthly contributions are P 1,090 for employers and P 500 for employees, which apply to employees receiving monthly compensation of P 14,750 or more.
Bilateral social security agreements. The Philippines has entered into bilateral social security agreements with the following jurisdictions.
Austria
Korea (South)*
Spain
Belgium
Netherlands
Switzerland
Canada
Quebec
United Kingdom
France
* This agreement has not yet been ratified.
Double tax relief and tax treaties
Foreign taxes paid or incurred in connection with a taxpayer’s profession, trade or business may be deducted from gross income, subject to exceptions. Alternatively, citizens and, if reciprocity requirements are met, resident aliens may claim credit for income, war profits and excess profits tax due to any foreign country; the credit may not exceed the Philippine income tax payable on the same income multiplied by a fraction, the numerator of which is taxable income from foreign countries and the denominator of which is worldwide taxable income.
The Philippines has entered into double tax treaties with the following countries.
Australia
Indonesia (c)(g)
Russian
Austria
Israel Federation
Bahrain
Italy
Singapore
Bangladesh
Japan (i)
Spain
Belgium
Korea (South)
Sri Lanka (c)
Brazil
Kuwait (b)
Sweden
Canada
Malaysia
Switzerland
Chile (c)(d)
Netherlands
Thailand (b)(h)
China
New Zealand (k)
Turkey (b)
Czech Republic
Nigeria (c)
United Arab Emirates (j)
Denmark
Norway
Finland (c)(f)
Pakistan
United Kingdom
France
Poland (a)
United States
Germany (e)
Qatar (c)
Vietnam
Hungary
Romania
Yugoslavia (c)
India
(a) This treaty has been ratified, but it has not yet entered into force.
(b) Pending signature.
(c) Pending ratification.
(d) Shipping only.
(e) The Philippines and Germany are renegotiating this treaty.
(f) A protocol amending the tax treaty has been signed, but it has not yet been ratified.
(g) The treaty with Indonesia has been renegotiated, but the renegotiated treaty has not yet been ratified.
(h) The treaty with Thailand has been renegotiated, but the renegotiated treaty has not yet been signed.
(i) A protocol amending the tax treaty entered into force on 5 December 2008 and is effective from 1 January 2009.
(j) The treaty entered into force on 2 October 2008 is effective from 1 January 2009.
(k) A protocol amending the tax treaty has been ratified, but it has not yet entered into force.
The Philippines is negotiating tax treaties with Brunei Darussalam, Iran, Myanmar, Oman, Papua
New Guinea, Saudi Arabia (air transport only) and Tunisia.
To learn more about the history, culture, economy and other information about Philippines
We have been preparing US income tax returns for US Citizens and permanent residents living in Philippines for over 15 years. As a US Citizen or permanent resident (green card holder) you are required to file a US return each year regardless of the fact that you file and pay taxes in your residence country. The expatriate earned income exemption ($100,800 for 2015) can only be claimed if you file a timely tax return. It is not automatic if you fail to file.
We have scores of clients located in Philippines and know how to integrate your US taxes into the local income taxes you pay. Any income tax you pay there can be claimed as a dollar for dollar credit against the tax on your US return on the same income.
As an expat living abroad you get an automatic extension to file until June 15th following the calendar year end. (You cannot file using the tax fiscal year for US tax purposes). You must pay any tax that may be due by April 15th in order to avoid penalties and interest. You can get an extension to file (if you request it) until October 15th.
There are other forms which must be filed if you have foreign bank or financial accounts; foreign investment company; or own 10% or more of a foreign corporation or foreign partnership. If you do not file these forms or file them late, the IRS can impose penalties of $10,000 or more per form. These penalties are due regardless of whether you owe income taxes or not.
There are certain times you may wish to make elections with respect to your Corporation or Investment Company which will give you US tax benefits. There are other situations where forming a US corporation to receive your business income may be more advantageous than using a corporation in your resident country. We can help you with these decisions.
If you are self-employed while working, you will have to pay US self-employment taxes (social security). If you are a bona-fide employee you do not have to worry about paying US social security on your wages earned in Philippines.
We have helped hundreds of expats around the world catch up because they have failed to file US returns for many years. Unfortunately, unlike India, Canada, UK, etc. you must also file so long as you are a US citizen or resident. You can if you follow proper IRS and State Department procedures surrender your US Citizenship and therefore cut off your obligation to pay US taxes in the future. You must surrender that Citizenship for non-tax avoidance reasons and then can usually not return to the US for more than 30 days per year for the subsequent ten years.
Let us help you with your US tax returns, US tax planning and other US tax and legal concerns. Download our expat tax questionnaire or request a request a consultation by phone, skype or email