I have been working as an Overseas Filipino Worker (OFW) for the last 15 years. Am I required to file income tax return?

No. An OFW or OFW’s income is exempted from income tax. Thus, OFWs are not required to file income tax return.

OFWs are Filipino citizens who are working and deriving income from abroad.

Section 23 of the National Internal Revenue Code of 1997 states that an OFW’s income from abroad or income arising out of his overseas employment is exempt from income tax.

My wife is employed in a local company in the Philippines. Their accountant told her that we should consolidate our income and file a single return even if I am working abroad. Is that correct?
No. Both individuals are exempted from filing income tax return.

Our son works in a BPO but not as an employee. He earns monthly income as a consultant and the company withholds 10% from his income. Should he file a tax return even if taxes were withheld at source?

Yes. Consultants are classified as self-employed professionals (SEPs). SEPs are required to register with the Bureau of Internal Revenue (BIR) and consequently, to file and pay both business and income taxes. As regards the 10% withheld taxes, SEPs may claim it as creditable withholding tax (BIR Form 2307), which is a deduction from its quarterly and annual income tax due.

Is everyone required to file income tax return? What’s the use of filing income tax return?

No. Everyone except the following:
  • An individual whose gross compensation income does not exceed his total personal and additional exemptions;
  • An individual with respect to pure compensation income;
  • An individual whose income has been subjected to final withholding tax e.g., interest income and dividends;
  • A minimum wage earner or an individual who is exempt from income tax like OFW.
Income tax return may voluntarily be filed for purposes of loans, foreign travel requirements, and as a proof of income, in general.  Source: rappler.com/business

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