The tax treaty between Canada and the Philippines calls for a 25% withholding tax. If you read further into the treaty it states that Canadian pensions are taxable in the country of origin. Basically the same deal as OFWs where the Philippines does not tax income of OFWs or pensions from abroad..
You do not need to file an income tax return in the Philippines but you do need to file a tax return in Canada. When you file your tax return with Canada you should get the 25% withheld taxes back at tax time.
File an NR5 forum with Revenue Canada and they can reduce the withheld taxes from 25% to 5%. You can reclaim the 5% at tax time.
I have been using Turbo Tax online (as recommended by Revenue Canada). You must print out a hard copy and mail your tax return to Rev Can as they will not accept an electronic copy.
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