Basic tax question
Posted by Responsible_Cap4617@reddit | expats | View on Reddit | 2 comments
Hello I’m a full time trader and I’m interested in moving to the Philippines this year.
If any other traders have moved abroad, would appreciate any knowledge you have on how taxes work.
Here’s my situation:
- Not married but will be in the next 2 years
- Full time futures day trader (meaning normally I’m taxed 60/40 ltcg/stgp)
- No kids
- US citizenship (partner has dual in US/PHP but we aren’t yet married)
- Would be staying in Manila for over 180 days per year
- No income deriving from the PHP at all
- I trade only NAS futures
Some initial questions: 1. Do I just get taxed normally from the US, or do I have to file differently as an expat? 2. Is there any additional taxes from the PHP if none of my income derives from there? 3. Any differences post marriage? 4. Any differences post considered residency?
Pale-Candidate8860@reddit
My opinions on some of these things, but know that I live in a different part of the world than you and will skip what I can't answer.
First, the visa you move on will determine a lot of your tax questions. Also, consult an immigration lawyer on everything as this can get complicated quick.
Please be aware that in the Philippines, marriage is for life. Divorce, in country or out, is not legally recognized. Only legal separation is via death.
I would seek someone who specializes in taxes for U.S. expats. Manila is a good shot for that.
You will be a tax resident, but your taxes will depend on your visa as some are purposefully beneficial. Some visas might have tax holiday type of arrangements.
PH might still tax foreign sourced income, but it depends on your visa.
IQ 1. All US sourced income is taxed from the US no matter where you live. Makes sense. How its taxed, depends on your situation.
IQ2. Depends on your visa as PH might have special exemptions or tax holiday status for specific visas.
IQ3. Since your wife is dual, yes. But not major differences.
That's all I got. I hope it was helpful, otherwise, my bad. Talk to an immigration lawyer and American expat tax professional.
QuillPing@reddit
Just a slight correction but on your number 1 while you can’t divorce you can get an annulment. The issue here is the OP will go for a 13a visa no doubt and that means on separation he will revert back to a tourist visa where he has to apply for another that is suitable at that time or available for his situation.