All Americans living in the Philippines are still required to follow US tax deadlines and file US taxes. This is because US taxation is based on citizenship, so American citizens and Green Card holders working in the Philippines will still have to file and pay taxes. They are expected to do diligent accounting and bookkeeping since they are still required to report their worldwide income yearly using Form 1040.
American expats working in the Philippines may be entitled to claim credits and exclusions and may use these to minimize their bills. The notable provisions of the IRS that you may use to your advantage include the Foreign Tax Credit, Foreign Earned Incomes Exclusion, and the Foreign Housing Exclusion.
Additionally, take note that alien residents and non-residents working in the Philippines are also subject to a 0% to 30% tax rate on income from engaging in Philippine trade or business depending on the income bracket. You may also need to make a report of your foreign investments, financial accounts, and businesses. Learn more about this below:
Critical Tax Filing Dates to Remember
Do note that tax filing dates are different when and if you are working abroad as an American Expat. Below is a list of all the important dates you need to take note of.
April 18, 2022
American expats filing their taxes from the Philippines don’t need to file in April like Americans living in the States do unless they are high earners, self-employed, or owe any past due US tax. In this case, you’ll need to make a payment by April 18 this year, as April 15, 2022, is a holiday in Washington DC.
June 15, 2022
An American expat working in the Philippines has a tax filing deadline on June 15, 2022. This means that if you are filing your tax returns for 2021, your filing deadline is on June 15, 2022. Except in cases where an extension is applied for by filing Form 4868 to the IRS.
October 17, 2022
If in case you requested an extension, you have until October 17 to file for this year. This is the last and final deadline for all American expats who are filing outside of the USA. October 15 happens to fall on a Saturday, so American expats working in the Philippines only have until October 17 to file their taxes.
The Complete 2022 American Expat Tax Calendar
Accounting services in the Philippines, also note that there are other vital dates to remember in the tax filing calendar. Take note of them below:
18th – Tuesday: Deadline for the 4th and final installment of the individual quarterly estimated taxes
24th – Monday: Opening date for IRS E-file
15th – Tuesday: LLC and S-Corp Tax Returns deadline and Trust or Foreign Trusts Tax Returns deadline
18th – Monday: Must file the 6-month extension if residing within the US. Taxes that are due but unpaid will start to accrue interest by this time.
-Deadline for the individual tax return for those residing within the US
-Deadline of C-Corp tax returns
-First installment of the current year’s individual estimated taxes
15th – Wednesday: Filing of extension to October 15 for those residing outside the US
-Deadline to pay individual tax return for those residing outside the US to avoid failure to pay penalty, but interest would still have accrued from April
-The second installment of individual estimated taxes for the current year is due
15th – Thursday: Deadline for extended filing of Partnership and S-Corp returns, trusts, and the third installment of estimated taxes due for the current year
17th – Monday: Deadline for extended filing of C-Corp and Individual US tax returns and FBAR
-All secondary extension requests for the 15th of December from taxpayers outside the US must be postmarked by end of the day
Mid-November shutdown of the IRS e-file. The exact date of the shutdown will be posted by the IRS in November
15th- Thursday: The last and final day to file an extended tax return for taxpayers residing outside the US if a paper-mailed extension request was postmarked by the 17th of October.
Final Thoughts on Tax Filing as an Expat in the Philippines
It may be a bit tricky to keep tabs on all the different due dates and deadlines, especially when working in different time zones abroad. If you find this to be a taxing, job for you (pun intended), you may always seek out accounting and tax help.
There are many firms that now provide outsourced accounting services. In the Philippines, some outsource firms, like our CPA team, help you in preparing the necessary deductibles for your US tax filing.