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At a Glance
The situation
Following the latest joint guidelines from the Philippine government, all foreign nationals must now obtain a Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue (BIR) to work in the Philippines. Previously, Special Work Permit (SWP) applicants whose salaries were paid in their home country were exempt from this requirement.
A closer look
Impact
Background
The new rule is intended to ensure that all foreign workers are paying their taxes on income earned in the Philippines. This comes after a recent discovery that many foreign nationals under SWP status were not paying income taxes, resulting in a loss in potential revenue in billions of pesos.
Looking ahead
The close coordination between the DOLE, BI, BIR and other concerned agencies is expected to result in additional rules and procedures that further restrict the regulation of foreign nationals entering and working in the Philippines. However, this combined effort may improve inter-agency coordination and streamline the work authorization process.
Fragomen is closely monitoring the situation and will report on relevant developments, including if penalties for noncompliance with this rule are published.
We worked closely with our Philippine affiliates in Manila to prepare this alert. It is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to APCCInitiations@fragomen.com.