American Expats in the Philippines

Updated on August 20, 2025.

Philippines & U.S. Tax Timeline: Critical Dates for Dual Filers

Managing dual tax obligations between the Philippines and the United States requires careful attention to two distinct tax calendars. Understanding these timelines is crucial for maintaining compliance and avoiding penalties in both jurisdictions.

The Philippine tax system operates on a pay-as-you-earn basis for employees, with employers withholding creditable withholding tax (CWT) monthly. Self-employed individuals and professionals must make quarterly income tax payments based on the prior year's tax liability or current year estimates. These quarterly payments are due April 15, July 15, October 15, and January 15 of the following year, creating a continuous cycle of tax obligations that must be carefully managed alongside U.S. requirements.

Strategic Payment Planning to Avoid U.S. Penalties

The most critical aspect of dual tax compliance for U.S. expats in the Philippines is understanding that the June 15 automatic extension applies only to filing, not to payment obligations. This distinction has significant financial implications that require proactive planning to avoid unnecessary interest and penalties.

To effectively manage this payment timing challenge, expats should implement a multi-pronged approach. First, conduct a preliminary tax calculation by early March using your Philippine income documentation and estimated U.S. tax obligations. This projection doesn't need to be perfect but should provide a reasonable estimate of your U.S. tax liability. Consider working with a tax professional familiar with both systems to ensure accuracy in this crucial calculation. As an expat CPA firm, we can help you with these items.

Second, establish a tax reserve account specifically for U.S. obligations. Since Philippine taxes are paid through wage withholding and quarterly payments throughout the year, you'll need separate liquidity for U.S. payments. Many expats find it helpful to set aside funds monthly, treating U.S. tax reserves as a fixed expense in their budget. This approach prevents the April 15 payment deadline from creating a cash flow crisis.

Third, leverage safe harbor provisions to minimize penalties. If you're unable to calculate your exact tax liability by April 15, you can avoid penalties by paying either 100% of your prior year's tax liability (110% if your prior year AGI exceeded $150,000) or 90% of the current year's tax. This safe harbor payment strategy provides protection while you finalize your actual tax calculations. As an expat CPA firm, we can help you with this.

For those with irregular income or significant Philippine-source income, consider making quarterly estimated tax payments to the IRS. While the Philippines handles tax through withholding and quarterly payments, the U.S. system may require quarterly payments if your withholding is insufficient. These payments are due April 15, June 15, September 15, and January 15, and help spread the tax burden throughout the year rather than facing a large payment in April.

Currency fluctuations between the peso and dollar add another layer of complexity to payment planning. Since you'll likely earn income in pesos but owe taxes in dollars, exchange rate movements can significantly impact your tax liability. Consider using the yearly average exchange rate for income reporting (as permitted by the IRS) to smooth out volatility, and monitor exchange rates when planning your April payment to optimize the conversion timing. As an expat CPA firm, we can help you with these items.

Philippines vs. U.S. Tax Systems: Direct Comparison

Understanding the fundamental differences between Philippine and U.S. tax systems is essential for effective tax planning as an American expat. While the Philippines taxes based on source of income for non-residents and worldwide income for residents, the U.S. maintains citizenship-based taxation regardless of residence.

The Philippine progressive tax system under the TRAIN Law applies rates from 0% on income up to ₱250,000 annually, progressing through brackets to 35% on income exceeding ₱8,000,000. This compares to U.S. federal rates ranging from 10% to 37%, though U.S. expats may benefit from the Foreign Earned Income Exclusion (FEIE) of $120,000 for 2023 and $126,500 for 2024.

One crucial difference lies in the treatment of investment income. The Philippines applies varying rates to different investment types - 20% final withholding tax on interest from peso deposits, 15% on gains from unlisted shares, and exemptions for certain long-term investments. The U.S., conversely, distinguishes between short-term gains (taxed as ordinary income) and long-term gains (taxed at preferential rates of 0%, 15%, or 20% depending on income levels). This difference can significantly impact investment strategy for expats managing portfolios across both countries.

The Philippine Tax System Explained in Detail

The Philippine tax system presents unique advantages and challenges for American expats. The Philippines' approach to income classification, taxation methods, and available deductions differs from the American system, requiring careful study to optimize tax positions and ensure compliance.

Understanding U.S. Income Classifications

Before diving into the Philippine system, it's essential to understand how the United States classifies and taxes different types of income, as this provides the framework for comparison and planning strategies.

The Philippine Income Tax Categories

The Philippines categorizes income into distinct classifications for tax purposes, each with specific rules and rates. This approach differs from the U.S. system and requires careful analysis to properly report income and optimize tax positions.

1. Compensation Income

Compensation income encompasses wages, salaries, bonuses, commissions, and employment benefits received by employees. The Philippines applies progressive tax rates under the TRAIN Law, with significant tax-free thresholds benefiting lower-income earners. Employees earning ₱250,000 or less annually pay zero income tax, providing substantial savings for entry-level positions and part-time workers.

2. Business Income/Professional Income

Business and professional income covers earnings from trade, business, or professional practice. Self-employed individuals and professionals can choose between itemized deductions or the Optional Standard Deduction (OSD) of 40% of gross receipts. This generous OSD often results in significantly lower effective tax rates compared to actual expense deduction.

The 8% gross income tax option provides an alternative for those with annual gross sales/receipts not exceeding ₱3 million. This simplified regime eliminates the need for detailed bookkeeping while providing a predictable tax burden. Mixed income earners (with both compensation and business income) may optimize by utilizing different regimes for each income type.

3. Passive Income

Passive income in the Philippines faces final withholding tax rates, eliminating the need for additional reporting on annual returns. This includes 20% on interest from Philippine peso deposits, 15% on cash/property dividends from domestic corporations, and 10% on royalties. Foreign currency deposit interest enjoys preferential 15% rate, encouraging dollar savings accounts.

Certain long-term investments receive tax exemptions. Interest from long-term deposits (5+ years) and investments in specific government securities are tax-exempt, creating planning opportunities for retirement savings. The distinction between final tax and regular income tax treatment proves crucial for investment structuring.

4. Capital Gains

Capital gains taxation varies significantly by asset type. Real property sales trigger 6% capital gains tax on gross selling price or fair market value, whichever is higher. This gross basis taxation can result in tax obligations even on loss transactions, requiring careful transaction structuring.

Stock transactions face different treatment. Listed shares traded on the Philippine Stock Exchange incur 0.6% stock transaction tax on gross selling price. Unlisted shares face 15% capital gains tax on net gains. The distinction between listed and unlisted shares creates opportunities for tax-efficient portfolio management.

5. Other Income

This category captures prizes, winnings, and other income not classified elsewhere. Prizes exceeding ₱10,000 face 20% final tax, while smaller prizes remain tax-exempt. PCSO and lottery winnings exceeding ₱10,000 are subject to 20% final tax, though winnings below this threshold enjoy tax exemption.

Philippine Taxes and Foreign Tax Credit Eligibility

Understanding which Philippine taxes can be claimed as a credit on Form 1116 is crucial for reducing your U.S. tax liability. While most income taxes are creditable, social security contributions and certain other taxes are not.

eFPS and BIR Form 2316: Understanding the Philippines' Tax System

For American expats, navigating the Philippines' tax system means becoming familiar with two key concepts: eFPS and BIR Form 2316. These are central to the process of filing your Philippine tax return and documenting your tax payments.

What is eFPS?

eFPS (Electronic Filing and Payment System) is the Bureau of Internal Revenue's online platform for filing tax returns and making tax payments electronically. It's the digital backbone of Philippine tax administration, allowing taxpayers to submit returns and pay taxes online. Think of it as the Philippine equivalent of the IRS's e-file system. To use it, you must enroll with an Authorized Agent Bank (AAB) and obtain login credentials that link your Tax Identification Number (TIN) to the system.

What is BIR Form 2316?

The BIR Form 2316 is your Certificate of Compensation Payment/Tax Withheld, issued annually by your employer. After the tax year ends, your employer provides this document showing your total compensation and taxes withheld for the year. It's the Philippine equivalent of the U.S. Form W-2. The Form 2316 clearly states:

• Your gross compensation income for the year.
• Non-taxable/exempt compensation (13th month pay, de minimis benefits).
• Total taxable compensation income.
• Income tax withheld by your employer.
• Year-end adjustment (refund or additional tax paid).

Form 2316 is a critical document for U.S. tax purposes, as it provides the official amount of Philippine tax you paid that can be used to claim the Foreign Tax Credit on your U.S. Form 1040.

U.S.-Philippines Tax Treaty Benefits

The U.S. and Philippines have a comprehensive tax treaty that entered into force on October 16, 1984. Its primary purpose is to prevent double taxation and fiscal evasion while promoting economic cooperation between the two countries.

The treaty provides several key benefits for American expats. Most notably, it ensures that certain types of income are taxed only in one country or at reduced rates. For example, U.S. Social Security benefits are taxable only in the United States, not the Philippines. Pension distributions from qualified U.S. retirement plans are generally taxable only in the country of residence. The treaty also reduces withholding rates on dividends (25% to 20% or 15%), interest (generally 10% or 15%), and royalties (15% to 25% depending on type).

Teachers and researchers temporarily present in the Philippines for up to two years may be exempt from Philippine tax on their teaching or research income. Students and trainees receive exemptions on payments for maintenance and education. Business profits are taxable only where a permanent establishment exists, protecting short-term business visitors.

Philippine Social Security and Benefits System

Four-Pillar System Overview

The Philippines' social security system consists of four main components:

• SSS (Social Security System): Mandatory for private sector employees and voluntary for self-employed. Provides retirement, disability, death, maternity, and sickness benefits. Monthly contributions range from ₱570 to ₱5,830 based on monthly salary credit.
• PhilHealth: National health insurance program covering hospitalization and medical expenses. Monthly contributions are 5% of monthly basic salary (shared equally between employer and employee) with a ceiling of ₱5,000 per month.
• Pag-IBIG: Home Development Mutual Fund providing housing loans and short-term loans. Mandatory contribution is 2% of monthly compensation (1% employee, 1% employer) with maximum compensation base of ₱5,000.
• GSIS: Government Service Insurance System for government employees only, providing similar benefits to SSS but with different contribution structures and benefit calculations.

Philippine Retirement Accounts and U.S. Tax Treatment

The U.S. tax treatment of Philippine retirement accounts varies significantly by type. The IRS generally does not recognize Philippine retirement plans as "qualified" in the same way as U.S. 401(k) or IRA accounts, leading to potential reporting and taxation challenges.

PFIC Mitigation Strategies for Philippine Investment Accounts

A Passive Foreign Investment Company (PFIC) is a foreign corporation that meets specific income or asset tests. Many Philippine mutual funds, UITFs (Unit Investment Trust Funds), and pooled investments fall into this category, leading to complex and often punitive U.S. tax consequences.

Identifying PFICs in Philippine Investments

• Request fund fact sheets from your bank or investment company.
• Look for pooled investment structures like mutual funds, UITFs, or balanced funds.
• Exchange-traded funds (ETFs) on the Philippine Stock Exchange are typically PFICs.
• VUL insurance policies with investment components usually contain PFICs.

Compliance Options

Since Qualified Electing Fund (QEF) elections are rarely possible with Philippine funds, the most common strategies are:

• Mark-to-Market Election: Often the most practical choice. Requires annual gain/loss calculation based on fair market value.
• Default Excess Distribution Regime: Most punitive method with interest charges on distributions.

Documentation Requirements

To comply with PFIC rules, maintain these records:

• Quarterly or annual statements showing fund values.
• Records of all purchases, sales, and distributions.
• Fund prospectuses and annual reports.

Philippine Financial Account Reporting Requirements

U.S. tax law requires reporting of foreign financial accounts if their aggregate value exceeds certain thresholds. This includes FBAR and FATCA reporting.

FBAR and FATCA Reporting

Accounts that must be reported include:

• Bank Accounts: Savings, checking, time deposits, foreign currency deposits at Philippine banks.
• Investment Accounts: Brokerage accounts, UITF accounts, mutual fund accounts.
• Retirement Accounts: PERA accounts, company retirement funds with account features.
• Insurance Products: VUL policies, endowment plans with cash value.
• Digital Wallets: GCash, PayMaya if balance exceeds reporting thresholds.

Form 8938 Thresholds for U.S. Expats

These are the reporting thresholds for U.S. citizens living abroad:

• Single/Married Filing Separately: $200,000 on the last day of the year or $300,000 at any point during the year.
• Married Filing Jointly: $400,000 on the last day of the year or $600,000 at any point during the year.

Philippine Government Benefits and Their U.S. Tax Treatment

Certain Philippine government benefits receive special treatment for U.S. tax purposes:

• 13th Month Pay: Required by Philippine law, this is taxable income for U.S. purposes despite being partially tax-exempt in the Philippines.
• De Minimis Benefits: Small benefits like rice subsidy, uniform allowance, and medical benefits are generally taxable for U.S. purposes.
• SSS/GSIS Benefits: Retirement and disability benefits are generally taxable in the U.S.
• PhilHealth Reimbursements: Medical reimbursements are not taxable income.
• 4Ps (Pantawid Pamilyang Pilipino Program): Conditional cash transfers are generally not reportable as they're welfare benefits.

Philippine Business Structures and U.S. Reporting

For self-employed individuals and business owners, U.S. reporting requirements vary based on the Philippine business structure:

Important Considerations

• Tax Treaty Benefits: Always claim applicable treaty benefits using Form 8833.
• Documentation: Maintain detailed records in both English and Filipino/Tagalog.
• Tax Year: Both countries use calendar year, simplifying reporting.
• Exchange Rate: Use IRS-approved exchange rates for peso-to-dollar conversions.

Philippine Visa Options and Their Tax Implications

The Philippines offers various visa categories for American citizens, each with distinct requirements, benefits, and tax implications. Understanding these options is crucial for optimizing your tax position while ensuring legal residence status.

Special Resident Retiree's Visa (SRRV)

The SRRV represents the Philippines' premier retirement visa, offering permanent residence with minimal requirements and maximum flexibility. Two main options exist: SRRV Smile requiring $20,000 deposit (age 50+) held in PRA account, and SRRV Classic allowing $10,000-20,000 deposit for property investment. The visa provides indefinite stay with multiple entry privileges and exemption from ACR I-Card requirements.

Tax implications strongly favor SRRV holders. Pension and annuity income from foreign sources remains tax-exempt in the Philippines. Investment income from abroad escapes Philippine taxation if not remitted. The visa allows property ownership (condominium units) and business investment opportunities. SRRV holders can work with additional permit from DOLE, enabling income diversification strategies.

9(g) Pre-Arranged Employment Visa

The standard work visa for foreign professionals requires employer sponsorship through the Alien Employment Permit (AEP). Initial validity ranges from 1-3 years with renewal options. Requirements include employment contract, employer's SEC registration, and professional qualifications documentation. The visa extends to spouse and unmarried children under 21.

Employment income faces standard Philippine tax rates with full deduction benefits available. Employers typically handle tax withholding and compliance, simplifying obligations. The 15% preferential tax rate option exists for certain positions in Regional Headquarters or offshore banking units. Treaty benefits apply to prevent double taxation on employment income.

Special Visa for Employment Generation (SVEG)

The SVEG targets investors and entrepreneurs creating Philippine employment. Requirements include minimum $75,000 investment and employment of at least 10 Filipino workers. The visa provides indefinite stay similar to SRRV with work authorization included. Family members receive dependent visas with potential work permits.

Business income faces regular Philippine corporate (30%) or individual tax rates depending on structure. The CREATE Act provides incentives including 5-10 year income tax holidays for registered enterprises. Dividend repatriation to the U.S. benefits from treaty-reduced withholding rates. Strategic structuring can optimize both Philippine and U.S. tax positions.

Treaty Trader/Investor Visa

Based on the U.S.-Philippines Friendship Treaty, this visa facilitates trade and investment. Requirements include substantial trade between U.S. and Philippines or significant investment in Philippine enterprise. The visa provides long-term residence with business operation rights and simplified renewal process based on continuing business activities.

Treaty traders benefit from special tax considerations under the bilateral treaty. Business profits are taxable only where permanent establishment exists. Reduced withholding rates apply to dividends, interest, and royalties. The treaty prevents double taxation while preserving business flexibility.

Student Visa (9f)

Student visas cover enrollment in recognized educational institutions. Requirements include acceptance letter, proof of financial capacity (typically $10,000+), and medical clearance. Students may engage in limited on-campus employment with special permit. Post-graduation, conversion to work visa is possible with job offer.

Students working part-time face Philippine tax on local employment income only. Scholarship and fellowship grants may be tax-exempt under treaty provisions. Educational expenses may qualify for U.S. education credits despite foreign institution. The visa provides pathway to professional employment and permanent residence.

Tourist Visa Extensions and Tax Implications

Americans can enter visa-free for 30 days, extendable up to 36 months total. Extensions are processed at Bureau of Immigration offices nationwide. After 59 days, ACR I-Card (Alien Certificate of Registration) becomes mandatory. Exit clearance required for stays exceeding 6 months.

Extended tourist stays may trigger Philippine tax residence after 180 days. However, without Philippine-source income, no local tax obligations arise. Digital nomads working for non-Philippine clients generally avoid permanent establishment issues. Careful day-counting prevents inadvertent tax residence establishment.

Philippines as a Digital Nomad Destination

While the Philippines lacks a dedicated digital nomad visa, several options accommodate remote workers, combined with favorable tax treatment for foreign-source income and excellent English-language environment.

Digital Nomad Visa Alternatives

Tourist visa extensions provide the simplest option for stays up to 36 months. No income restrictions apply if working for non-Philippine entities. The SRRV offers permanent residence for those 50+ with minimal deposit requirements. Business visas may apply for those establishing Philippine entities or representative offices. The key is structuring arrangements to avoid permanent establishment.

Tax optimization strategies include maintaining non-resident status by limiting stays under 180 days annually. Even as residents, foreign-source income not remitted remains untaxed. Structuring contracts with non-Philippine entities preserves foreign-source characterization. Using foreign bank accounts for income receipt avoids remittance taxation triggers.

Digital Infrastructure Considerations

The Philippines offers improving but variable internet connectivity. Major cities provide fiber connections up to 1Gbps. Co-working spaces proliferate in Manila, Cebu, and emerging tech hubs. Backup internet solutions (pocket WiFi, multiple ISPs) ensure reliability. Starlink approval provides remote area connectivity options.

Banking and Financial Services

Banking access varies significantly based on visa status. Tourist visa holders face restrictions at traditional banks but can access digital banks like Maya or GoTyme. Work visa and SRRV holders enjoy full banking privileges including peso and dollar accounts. Many banks offer dedicated expat services in English.

FATCA compliance creates challenges for American account holders. Some banks restrict services or require additional documentation. Digital banks often provide more accessible options with lower requirements. International transfers benefit from competitive exchange rates and low fees through fintech platforms.

Frequently Asked Questions for U.S. Expats in the Philippines

Q: How does the U.S.-Philippines tax treaty prevent double taxation?

The treaty provides multiple mechanisms to prevent double taxation. First, it assigns primary taxing rights - employment income is generally taxable where work is performed, U.S. Social Security remains taxable only in the U.S., and private pensions are typically taxable only in the country of residence. Second, both countries provide foreign tax credits for taxes paid to the other country. Third, the treaty includes tie-breaker rules for residence determination. Finally, reduced withholding rates apply to dividends (25% to 15-20%), interest (15%), and royalties (15-25%), facilitating cross-border investments.

Q: Can I contribute to both Philippine and U.S. retirement accounts?

Yes, with careful planning. PERA contributions up to ₱100,000 annually receive Philippine tax deductions. U.S. retirement contributions (IRA, 401(k)) remain available if you have U.S.-source earned income or elect to include foreign earned income. Philippine retirement plans may face U.S. treatment as foreign trusts, requiring Forms 3520/3520-A. Consider the significant PFIC risks in Philippine pooled investments within retirement accounts. The treaty generally prevents double taxation of retirement distributions.

Q: What happens to my U.S. state tax obligations when I move to the Philippines?

State tax obligations depend on your former state and steps taken to establish non-residence. States like California, New York, Virginia, and New Mexico aggressively pursue former residents. Key steps include obtaining Philippine ACR I-Card and driver's license, closing state bank accounts, updating voter registration to overseas status, and filing final part-year or non-resident state returns. Some states continue taxing certain income (like state pensions) regardless of residence. States with no income tax (Texas, Florida, Washington, Nevada) simplify expatriation.

Q: How are Philippine real estate investments taxed for U.S. expats?

Philippine real estate faces multiple tax considerations. Rental income is taxed at regular rates with 5% optional gross income tax available. Property sales trigger 6% capital gains tax on gross selling price or fair market value, whichever is higher. Annual real property tax applies based on assessed values (typically 0.25-1%). For U.S. purposes, report rental income on Schedule E with 27.5-year depreciation. Capital gains face U.S. tax regardless of Philippine treatment, with primary residence exclusion potentially available. Foreign tax credits apply for Philippine taxes paid. Consider that the 6% Philippine capital gains tax on gross (not net) can exceed actual profits.

Q: Should I choose the Foreign Earned Income Exclusion or Foreign Tax Credit?

For most U.S. expats in the Philippines, the Foreign Earned Income Exclusion (FEIE) typically provides better results due to relatively lower Philippine tax rates. The FEIE can exclude up to $126,500 (2024) of earned income, often eliminating U.S. tax entirely for moderate earners. However, FTC might benefit high earners or those with significant passive income. FTC preserves U.S. retirement account contribution eligibility and doesn't require physical presence tests. Many expats optimize by using FEIE for earned income and FTC for passive income. Consider that revoking FEIE requires five-year waiting period for re-election.

Q: How do I handle Philippine investment taxation as a U.S. citizen?

Philippine investment income faces varying tax treatment. Interest on peso deposits incurs 20% final withholding tax, while foreign currency deposits face 15%. Dividends from Philippine companies face 10% withholding for residents. These are final taxes in the Philippines but must be reported on U.S. returns. Philippine mutual funds and UITFs create PFIC complications with punitive U.S. tax treatment. Consider investing in individual Philippine stocks to avoid PFIC issues. U.S. ETFs and mutual funds held in U.S. accounts avoid Philippine tax if not remitted.

Q: What are the implications of operating a Philippine corporation as a U.S. citizen?

Philippine corporations face complex U.S. tax treatment. The 30% Philippine corporate tax applies, reduced to 25% for small corporations. For U.S. purposes, Form 5471 filing is required for 10%+ ownership. Controlled Foreign Corporation (CFC) rules may trigger GILTI tax on undistributed profits. Subpart F income faces immediate U.S. taxation. Check-the-box elections can convert corporation to pass-through treatment for U.S. purposes, potentially avoiding double taxation. Consider that dividends face both Philippine (10%) and U.S. tax, though foreign tax credits apply.

Q: How does the Philippines tax U.S. Social Security benefits?

Under the U.S.-Philippines tax treaty, U.S. Social Security benefits received by U.S. citizens are taxable only in the United States, regardless of Philippine residence duration. The Philippines cannot tax these benefits at all. For U.S. tax purposes, up to 85% of Social Security benefits may be taxable depending on total income. This exclusive U.S. taxation right provides significant advantage compared to countries that gain taxing rights after certain residence periods.

Q: Can I use the Philippine healthcare system, and how does it affect my taxes?

Philippine healthcare is accessible and affordable for expats. PhilHealth membership is mandatory for employed expats, with contributions of 5% of salary (split between employer and employee) up to ₱5,000 monthly. Voluntary membership is available for others at ₱4,800 annually. PhilHealth covers 30-80% of hospitalization costs. Private health insurance premiums are not tax-deductible in the Philippines but may qualify for U.S. self-employed health insurance deduction. Many expats maintain international insurance for medical evacuation coverage. PhilHealth reimbursements are not taxable income.

Q: What triggers Philippine tax audits, and how should I prepare?

The Bureau of Internal Revenue (BIR) employs computerized audit selection. Common triggers include inconsistent income reporting across years, claiming excessive deductions, late or amended returns, third-party information mismatches (particularly from banks under FATCA), and high-value transactions without supporting documentation. U.S. expats may face scrutiny due to foreign income complexity. Preparation strategies include maintaining English translations of documents, working with BIR-accredited tax agents, keeping proof of foreign taxes paid, documenting exchange rates used, and responding promptly to Letters of Authority (typically 30-day deadline). Audits typically cover three years but extend to ten for fraud.

Why Choose American Expat CPA as Your Tax Partner

Navigating the intersection of U.S. and Philippine tax systems requires specialized expertise that goes beyond traditional tax preparation. At American Expat CPA, we've built our practice specifically around the unique challenges faced by U.S. citizens living abroad, with particular depth in Philippine tax matters.

Our Specialized Expertise

Our team combines U.S. tax expertise with deep knowledge of Philippine tax law and BIR regulations. We maintain relationships with trusted Philippine CPAs to ensure seamless coordination of your dual filing obligations. Our professionals stay current with both U.S. tax reform and Philippine legislative changes, including the impact of the CREATE Act and ongoing TRAIN Law modifications on your overall tax strategy.

We understand that every expat situation is unique. Whether you're a professional on a 9(g) visa maximizing the Foreign Earned Income Exclusion, a retiree on SRRV optimizing pension taxation, or an entrepreneur navigating Philippine corporate structures and U.S. CFC rules, we develop customized strategies that optimize your specific circumstances. Our approach goes beyond compliance – we proactively identify opportunities to legally minimize your global tax burden while ensuring full compliance in both jurisdictions.

Comprehensive Service Offering

Technology-Enabled Global Service

We've built our practice for the digital age, serving clients across the Philippines and worldwide through secure, cloud-based systems. Our portal provides 24/7 access to your documents, secure messaging with your tax team, and digital signature capabilities that eliminate the need for physical meetings. We conduct video consultations that accommodate Philippine time zones, ensuring convenient access to expert advice regardless of your location in the Philippines.

Transparent, Value-Based Pricing

We believe in transparent pricing with no surprise bills. Our comprehensive expat tax packages include all necessary forms and schedules, with clear pricing for additional services like amended returns or multi-state filings. Most importantly, our fee structure is designed to deliver value – the tax savings we identify typically far exceed our professional fees, making our services a smart investment in your financial future.

Your Success is Our Mission

Living in the Philippines as a U.S. expat should be about enjoying the incredible beaches, warm culture, and affordable lifestyle – not stressing about tax compliance. We handle the complexity of dual taxation so you can focus on building your career and life in the Philippines. Our clients consistently save thousands in taxes while gaining peace of mind that their obligations are properly managed.

Whether you're just planning your move to the Philippines, already established as a resident, or anywhere in between, American Expat CPA provides the expertise and support you need. We understand the expat journey because we specialize exclusively in international tax matters for U.S. citizens abroad.