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List of Territorial Tax Countries with formal and de-facto treatment of foreign income

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No, the UAE has 9% corporate tax now, on any kind of income.
There are‌ some exceptions for certain activities (like construction of ships) in freezones, for companies with proper‍ substance (employees, office, ...) - they would still pay 0%.
Alternatively, for the first 3⁠ years, there's no tax if your revenue is below 800k.
The legal situation is still⁤ very much "in flux" since they just introduced this tax. I would strongly recommend you⁣ to stay away from the UAE.
There is no rule of law. They can change⁢ the rules any time and you have no recourse.

RAK offshore companies (IBCs) are worthless.︀ For all I know, you would never ever get a bank account for such a︁ company.
Then you would be better off with a Hong Kong company - at least︂ it's still possible to get a bank account with some EMIs.

I see your points︃ re. US LLCs. Then set up a Canadian LP, a UK LLP or a Hong︄ Kong Ltd.
Then move to Thailand and be happy.
Only downside if you're a trader:︅ No access to treaty benefits if you use such a company and aren't considered tax︆ resident by Thailand.
See also this thread:
https://www.offshorecorptalk.com/th...thout-spending-180-days-in-the-country.41862/
 
Guys i'm going to ask @Martin Everson or @JohnLocke to delete all posts starting from‌ post #55 because i'd really like to keep this thread clean. It was my fault‍ in the first place because i added a list of tax free jurisdictions when i⁠ instead i should have started a new thread.
 
Ok the⁤ off topic stuff actually goes a lot further back. I will remove posts going forward⁣ that are off topic to make it easier.

So guys and girls please stick to⁢ thread topic...thx.
 
Maybe you can move it into a separate thread?

Back to topic: What about Hong‌ Kong? Seems like ordinarily resident = tax resident, and foreign income isn't taxed? How strict‍ is it?
 
Ok, HK is out then. I was in HK very recently and spoke to some‌ locals. They said everything had changed since covid, the police used to be very friendly,‍ now they're harassing people for no reason.
Several people I know (Chinese) who used to⁠ live in HK have also moved abroad. Just wanted to confirm, thanks.
 
Have you considered the DR before? If you're⁠ from Europe it's closer than HK. And nobody gives a s*** about anything.
 
Nope!
Read -> Maya Consumer
You are responsble, you have to file a tax declaration on your‌ own, you have to declare - nothing will be witheld.

Unfortunately, your opinion ("believe") is‍ widespread. Many already paid dearly for that "believe".

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Ladies, Gentlemen: Make yourself familiar with⁠ local legislation. Do not spread info that makes people believe a developing country is 'Wild⁤ West' !
 
You can do that in the⁠ UK as far as I understand, beside Dubai of course.
 
I don't need to search on this topic and we might have different opinions and︁ experiences, although I value your opinion as it seems you also have extensive experience in︂ the Philippines.

If you do some online work at home and nothing is related to︃ or sourced in Philippines and you keep everything out of Philippines you won't pay tax︄ on your foreign income.

To be allowed to work in the Philippines am AEP is︅ required, how would someone obtain a work permit for doing online work for a corporation︆ abroad? Only one residence status can get exemption of requiring a work permit but even︇ with that there is no visa or provision that tackle this situation.

It has been︈ confirmed by immigration supervisor that as long as you don't do any business in Philippines,︉ work here in an office or work with locals you don't need (nor you can︊ obtain) a work permit or pay taxes on this.

I understand you are tired of︋ repeating things and I also don't want to go in a discussions here. Still I︌ would be interested to know which type of visa one should aquire and how one︍ can get an AEP if he/she is not employed in the Philippines by a local︎ corporation? As well how to handle tax filing for a foreigner who stays in Philippines️ and does remote work for a corporation abroad and does not have a work permit‌ . In my knowledge this is not possible unless you create your own corporation.

Personally I pay taxes in Philippines on my local income because I work with locals, but‍ I got an exemption card from BIR where I don't need an AEP and I⁠ don't pay taxes on foreign income.
 
Exactly, this is︍ how it is.

If someone here is writing "Many already paid dearly for that "believe".",︎ it would be great if such a statement can be enriched with maybe around 10+️ semi-official sources for everyone to read and where it has been caused by such and‌ not tax laws has been used because subject had a comprehensive inspection with a local‍ sheriffs daughter.
 
It is, of course, more than one, even though that's pretty irrelevant in‍ the context of this thread -> WORK PERMIT APPLICATION FOR FOREIGN NATIONALS | DOLE-CAR

If the company does not want to⁣ create a local establishment, you are self-employed/freelance (even if not).
The point here is that⁢ the foreign company is not even allowed to hire you as an employee without acquiring︀ the necesaary pernissions.
Ask DOLE, not an immigration supervisor.
I had that discussion years ago︁ with DOLE. All too complicated, so I did not contunue with what I had in︂ mind.
This automatically answers the tax question.
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Nope. Read again and you will see the problem.
Google: BIR, Kim Henares. During her term, cases where highly public.
I posted︆ an offcial source (#68). It clearly mentions what to do.
Sadly, your reply suggests a︇ 'Wild West' approach.

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I suggest to end our little discussion here, and I a︈ saying Good Bye & Farewell.
Everybody who reads it can now make up his/her mind︉ if it's worth to dig a bit deeper into local legislation (and to not confuse︊ developing nations with the 'Wild West' ban-:; ).
 
I read up on Kim Henares, seems she went⁠ after grand corruption, government corruption, and tried to reform the tax agency which had a⁤ reputation of being among the most corrupt institutions in the Philippines. Tough job in a⁣ developing country!

From a Reuters article about her:
https://www.reuters.com/article/us-philippines-economy-tax-idINBRE8AQ19920121127---
"Historically, tax collection has sometimes⁢ been a “let’s make a deal” game between taxpayers and bribable officials.
We are changing︀ ourselves from being primarily a customer service institution to a law enforcement institution, said Henares.︁ “We were collecting taxes at the pace the taxpayer dictates.

Now, the bureau - which︂ collects nearly 70 percent of all government revenue - is taking the initiative, and it︃ wants taxpayers to be afraid of ignoring laws. “If you look at the psyche of︄ the Filipino, if you do not put fear in them they will not obey,” Henares︅ said.
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So a clear mission statement about no longer being Wild West, but at︆ the same time a recognition of the reality, that the Philippines really was Wild West︇ - and might still be. Not sure to what degree Ms Henares succeeded. John Githongo︈ tried to clean up things in Kenya in the same way as head of Kenya's︉ anti corruption agency, and was threatened to death, fired and had to flee Kenya. Look︊ him up! Much of the developing world still remains the wild west.

Anyway, I see︋ no examples of Henares going after small time foreigners with a business outside the Philippines.︌ More from Reuters:

---
"She quickly filed her first case, against a pawnshop chain owner︍ who bought a Lamborghini for 26 million pesos during a year in which he and︎ his wife allegedly did not pay tax. The case is pending in a tax-appeal court,️ with the accused out on bail.

The cases that Henares files at the Department of‌ Justice can lead to arrests, but only a court can convict. To date, only five‍ tax cheats have been convicted.

While Henares may have to wait years to get her⁠ first criminal conviction, she has filed 135 evasion cases so far. They include a 120⁤ million peso suit against an impeached Supreme Court chief justice and a 5.5 billion peso⁣ claim against a billionaire businessman."
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So 135 evasion cases, 5 conviction, that's not very⁢ much in a country with 114 million people. What would be much more interesting to︀ hear is if there are examples any non-super high profile expats living in Philippines that︁ have been targeted by tax authorities.
 
Below a link describing more about working as a "nomad" in the Philippines. This article‌ shouldn't be interpreted as being a reference but it clearly describes the situation in Philippines.‍ Just as in Thailand, can you get in trouble working remotely for years in Philippines⁠ and not paying any tax, maybe yes. But chances are very small as long as⁤ you don't work with local corporation, locals and stay out office environments.

https://www.supportadventure.com/can-i-work-remotely-in-the-philippines/
It would⁣ be interesting to see an article about a case where foreigner ok Philippines was working⁢ remotely on a tourist visa and had to pay taxes or got deported. Most foreigners︀ are in Philippines on a tourist visa and many even own businesses on a tourist︁ visa.

Recently someone who ran a charity business (dog shelter) in Philippines, who has no︂ work permit nor corporation was told that she needed a corporation to run that. The︃ local government helped her to obtain everything and even donated money.

In will also close︄ this topic for myself, and we people can decide for themselves if it's a risk︅ to work remotely in Philippines or not. There is no nomad visa nor a clear︆ rule, so even questions are asked to officials the result will be different answers

Both, multiple sources and︇ jurisdictions. I'm also residing in different countries so the situation is more complex and doesn't︈ mean no issues ever can arise. In the past 15 years had paid always personal︉ income tax and contributions on local earned income.
 
Yes, that is very interesting outcome.
Also wondering if these⁢ millions upon millions of Philippine VAs are all paying tax working from home for US︀ etc companies, and these are nationals and not expats.
 
Quite some Filipino citizens work for⁠ a company abroad either as freelancer or employee and don't report their income. I wouldn't⁤ recommend that although there is still a bank secrecy in Philippines but this might change⁣ soon with the bill 7446 that passed vote in congress. As anywhere in the world⁢ trouble starts when due to any event, tax authorities start looking closer at you.

Therefor keep your income outside Philippines and use wise card to pay or to withdraw money.︀ Bitcoin is also accepted in quite some supermarkets and venues.
 
In the “Corporation Code” of the PH there is no concept⁤ of residence for tax purposes. Instead the PH applies the incorporation test.

As a result,⁣ you would be unable to obtain a PH TIN for your overseas company as under⁢ the criteria of the PH Government, it is not considered tax resident.

Additionally, the PH︀ does not have a central management and control test.

A corporation is resident if it︁ is incorporated in the PH or, if a foreign corporation, it has a branch licensed︂ by the SEC in the PH. A “Branch Office” of a non-resident foreign corporation must︃ “derive income from the PH” according to the Corporation Code of the PH. The branch︄ is taxed only on nett income from sources within the Philippines.

THEREFORE if the foreign︅ company has no PH income:
* it can not open a branch office
* it︆ is not resident for tax purposes
* it is unable to obtain a PH TIN︇

Our problem with our foreign minds is that we are mentally predisposed to go into︈ detail to an extent that Filipinos simply don`t. Their law is unclear. One`s predicament therefore︉ all comes down to the interpretation of the enforcing Pinoy and so there is risk.︊ How great a risk?
 
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