Tax Implications for Filippino Forex traders

Traders must pay tax on earnings

Many Filipino Forex traders are unsure of their legal tax obligations towards the Bureau of Internal Revenue (BIR). Most trading accounts are overseas, and the gains from their trading are not visible to the BIR. It is a common misperception that traders don’t need to pay income tax on profits made in offshore trading accounts. Suppose a Filipino resident generates profit from trading in an offshore trading account while residing within the borders of the Philippines. In that case, the profit is regarded as normal taxable income and needs to be declared in their tax returns. It doesn’t matter where the income originates, but where the person resides while generating it.

Tax rates for individual traders and special trusts

Forex traders who trade in their individual capacity and special trusts are subject to income tax under the BIR's income tax for individuals.

This article is a general guide and is not intended as individual legal or tax advice. For more specific information on Filipino tax legislation, please consult a registered tax practitioner or the Bureau of Internal Revenue directly.