chapter 2 (illustration) Flashcards
A British computer expert was hired by a Philippine corporation to assist in its computer system installation for which he had to stay in the Philippines for 6 months. Is he a resident alien?
One who comes to the Philippines for a definite purpose which in its nature would require an extended stay and to that end makes his home temporarily in the Philippines, becomes a resident, though it may be his intention at all times to return to his domicile (place of habitual or permanent residence) abroad when the purpose for which he came has been accomplished.
A British cultural performer was engaged to perform in the Philippines for two weeks after which he returned to his country. Is he a resident alien?
No. One who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished is a transient.
An alien owns shares of stock in the Philippines. Is he considered as engaged in business or trade in the Philippines?
No, mere ownership of shares of stock in the Philippines is not enough to constitute as engaging in trade or business in the Philippines.
An alien temporarily serves as executive manager of an airline in Manila. Is he considered engaged in trade or business in the Philippines?
Yes, because he is performing the functions of a public office.
A resident alien left the Philippines and abandoned his residency thereof without any intention of returning. May he still be considered a resident alien?
No, because he has no intention at all to return to the Philippines.
A resident alien left the Philippines with a re-entry permit. Is he still a resident alien?
Yes, his re-entry permit proves that he has not abandoned his residence in the Philippines.
A non-resident citizen went to Manila under the Balikbayan Program. Does his return to Manila interrupt his residence abroad?
No, his trip to Manila did not interrupt his residence abroad. The phrase “uninterrupted period” should not be interpreted literally. His trip to Manila did not affect the continuity of his residence abroad.
Illustration. Source: BIR Ruling 053-2010, Sept. 14, 2010
An alien who holds a Special Retiree Residents Visa is considered a resident alien subject to Philippine income tax under Section 24(A) of the Tax Code
Illustration. Source: BIR Ruling DA-290-2005, June 27, 2005
An alien is a stockholder of a PEZA-registered enterprise. He has been involved in the company since its incorporation in 1996, has obtained a special non-immigrant visa and was required as company president to be in the Philippines most of the time to manage the day-to-day operations of the company. This alien qualifies as a resident alien for Philippine Income tax purposes. His dividend income shall be subject to the 10% final tax imposed under Section 24(B)(2) of the Tax Code to be withheld by the payor-company.
