Hello, I am Filipino and currently a permanent resident in the US. I placed some funds in a Philippine bank account a few months ago and I used my Philippine Tax ID when I opened the account. Does anybody know how the interest earnings are taxed? Do I have to file taxes in the Philippines for this account? Any information will be greatly appreciated.
All PI issued checking, savings and CDs under 3 years are subject to a 20% passive income tax which is deducted by the bank before distribution of interest so no you do not have to file taxes on these passive income distributions. Sale of stocks and real estate income are whole other matters. If you do file as a PI citizen you have a personal exemption starting at 20,000 pesos if single and 32,000 if married. For more information visit the BIR.gov.ph site.
