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Section 22

in the Philippines or UNDER its


laws.

Person
-

Means an:
o INDIVIDUAL
o TRUST
o ESTATE
o CORPORATION.

Corporation
-

Shall include Partnerships, no


matter how created or
organized.
o Does NOT include
General Professional
Partnerships
Joint-stock companies
Joint accounts
Associations
Insurance companies

**DOES NOT INCLUDE:


-

JOINT VENTURE or CONSORTIUM


formed for the purpose of
undertaking CONSTRUCTION
projects; or
Engaging in PETROLEUM, COAL,
GEOTHERMAL, and OTHER
energy operations PURSUANT to
an operating or consortium
agreement under a service
agreement WITH the
government.
General professional
Partnerships
o formed by PERSONS
o for the sole purpose of
EXERCISING their
COMMON profession
o NO part of INCOME of
which is derived from
engaging in any TRADE or
BUSINESS.

Domestic
-

When applied to a corporation,


means CREATED or ORGANIZED

Foreign
-

When applied to Corporation,


means NOT a domestic.

Non-Resident Citizen
1. Citizen of the Philippines
a. Who ESTABLISHES to the
satisfaction of the
COMMISSIONER the fact
of his PHYSICAL
PRESENCE abroad
b. With a DEFINITE
INTENTION to reside
therein.
2. Citizen of the Philippines
a. Who LEAVES the
Philippines DURING the
taxable year to RESIDE
abroad, either as an
IMMIGRANT or for
EMPLOYMENT on a
PERMANENT basis.
3. Citizen of the Philippines
a. Who WORKS and
DERIVES income from
abroad and
b. Whose employment
thereat REQUIRES him to
be PHYSICALLY PRESENT
abroad MOST of the time
DURING the taxable year.
4. Citizen of the Philippines
a. Who have been
previously considered as
nonresident citizen
b. Who arrives in the
Philippines AT ANY TIME
during the taxable year
to reside permanently in
the Philippines
He shall be treated as
nonresident citizen for
the taxable year IN

WHICH he arrives in the


Philippines WITH
RESPECT to his income
derived FROM SOURCES
ABROAD UNTIL the date
of his ARRIVAL in the
Philippines.
** The taxpayer SHALL submit proof to
the commissioner to SHOW his
intention of leaving the Philippines to
reside:
Permanently abroad or
Permanently to return and
reside in the Philippines

Resident citizen ALL income derived


from sources within AND without the
Philippines
Non-resident Citizen - Income derived
from sources WITHIN the Philippines
only.
Overseas Contract Worker Taxable
only on income from sources WITHIN
the Philippines, provided that a
SEAMAN who is:
-

Resident Alien
-

An INDIVIDUAL
Whose RESIDENCE in the
Philippines
Who is NOT a citizen thereof

Non-resident Alien
-

An INDIVIDUAL
Whose residence is NOT within
the Philippines
Who is NOT a citizen thereof.

Resident foreign corporation


-

A foreign corporation ENGAGED


in trade or business WITHIN the
Philippines

Nonresident Foreign Corporation


-

Foreign corporation NOT


engaged in trade or business
within the Philippines

Taxable year
-

Means the CALENDAR YEAR, or


the FISCAL YEAR ending during
such calendar year, upon the
basis of which the net income is
computed under this title.

Section 23 of the National Internal


Revenue Code

A CITIZEN of the Philippines


Who receives compensation for
services rendered ABROAD
As a member of the
COMPLEMENT of a vessel
abroad
Engaged EXCLUSIVELY in
INTERNATIONAL TRADE

Resident alien taxable only on


income from sources WITHIN the
Philippines
Non-resident Alien Taxable on
income fom sources WITHIN the
Philippines
Domestic Corporation taxable on ALL
income from sources within AND
without the Philippines.
Foreign Corporation engaged in trade
or business in the Philippines taxable
on income form sources WITHIN the
Philippines.
Foreign Corporation not engaged in
trade or business in the Philippines
taxable on income from sources
WITHIN the Philippines.
Section 24.