Julia Christine Botin

Article (news)

<p>One of the most persistent misconceptions among Filipino Americans—especially dual citizens—is the belief that investing in or earning from the Philippines automatically invites the burden of double taxation. </p><p>This concern surfaced repeatedly during our financial literacy programs—most recently in Anchorage, Alaska with MWO-OWWA Washington, D.C.—where many overseas Filipinos shared not only their confusion about tax obligations but also their deeper uncertainty about whom to trust and where to invest. </p><p>These conversations revealed a deeper challenge: misinformation continues to paralyze financial decisions at a time when global mobility and international investment opportunities are expanding.</p><p>The truth, however, is far simpler than the fear that surrounds it. Double taxation is largely a myth. The Philippines and the United States signed their tax treaty in 1976, and it took effect in 1982, precisely to ensure that the same income is not taxed twice. Under this treaty, taxes paid in the Philippines may be credited against US tax liability through the Foreign Tax Credit mechanism, allowing FilAms to pay only the difference between the two countries’ tax rates—not both. Equally important, Philippine tax law clearly states that overseas Filipinos are not required to declare or pay taxes on income earned abroad. </p><p>It is confusion—not the law—that has discouraged many overseas Filipinos from investing confidently in their home country. </p><p>These individual concerns mirror broader policy challenges raised during the Philippine Investment Forum in Washington, D.C., organized by the US-Philippine Society and the Philippine Embassy. There, we emphasized the urgent need to improve ease of doing business and strengthen investor trust—issues that will define the Philippines’ competitiveness in the coming decade. </p><p>Central to this reform agenda is the CREATE MORE Act, which introduces a dedicated RBE Taxpayer Service to assist registered business enterprises, a fully electronic VAT Refund Center to finally address chronic refund delays, and a more predictable and globally aligned incentive system. </p><p>These domestic reforms intersect with our expanding international collaboration. Our engagement with the OECD on the Global Minimum Tax positions the Philippines to compete in a rapidly harmonizing global tax environment. Our work with the International Tax and Investment Center (ITIC) aims to streamline tax treaty applications and relief procedures—one of the most common pain points for foreign investors. </p><p>Conversations with experts from the World Bank, IMF, Transparency International, and other institutions—whether through policy forums or my podcast Thought Leaders &amp; Game Changers—ensure that Philippine tax reform remains anchored on global best practices and institutional integrity. </p><div><strong>CONFRONTING CORRUPTION</strong></div><p>Reform, however, must also confront corruption head-on. In an open letter to the President, we proposed using the National Internal Revenue Code to treat unexplained wealth as prima facie tax evasion, subject to perpetual disqualification from public office. A tax system cannot earn investor confidence if the political system enables impunity. Tax justice must be a cornerstone of governance. </p><p>Complementing governance reforms, we continue to push for tax policies that provide immediate relief to ordinary Filipinos. Increasing the income tax exemption from P250,000 to P400,000–P500,000 and reducing the VAT rate from 12 to 10 percent—while rationalizing exemptions—would strengthen purchasing power and address inflationary pressures. These proposals reinforce the Department of Finance’s priority measures on the Global Minimum Tax, the Single-Use Plastics tax, and the General Tax Amnesty. </p><p>Beyond technical reforms, our advocacy includes reshaping mindsets. Through the global book series Reimagining the World Without Corruption and Reimagining the World Without Climate Change, we challenge institutions and citizens to rethink what a just, transparent, and sustainable Philippines must look like.</p><p>These efforts continue through the ACG 2025 International Tax &amp; Investment Roadshow, with upcoming sessions in San Francisco on November 5, Los Angeles on November 6, and Ottawa on November 13. Each engagement invites overseas Filipinos, global investors, and policy leaders to participate in a shared vision: a Philippines that is easier to invest in, fairer to taxpayers, and anchored on integrity. </p><p>Debunking myths, strengthening governance, and advancing smart reforms are essential—not only for FilAms seeking clarity but for rebuilding investor trust in the Philippines. </p><div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1762421964978mon abrea.jpg" style="width:650px" class="fr-fic fr-dib"/></div><div><em>About the Author </em></div><div><em>Mon Abrea, CPA, MBA, MPA (Harvard) is a global tax policy expert and Chief Tax Advisor of the Asian Consulting Group (ACG); award -winning author of the Reimagining the World book series; and host of the international policy podcast Thought Leaders &amp; Game Changers.</em></div>

<p>One of the most persistent misconceptions among Filipino Americans—especially dual citizens—is the belief that investing in or earning from the Philippines automatically invites the burden of double taxation.</p>

One of the most persistent misconceptions among Filipino Americans—especially dual citizens—is the belief that investing in or earning from the Philippines automatically invites the burden of double taxation.

OPINION: Debunking the double taxation myth for Fil-Ams and rebuilding investor trust in the Philippines

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OPINION: Debunking the double taxation myth for Fil-Ams and rebuilding investor trust in the Philippines

Mon Abrea,

Global Tax Policy Expert

Published Nov 06, 2025 01:29 PM PHT

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Updated Nov 06, 2025 05:39 PM PHT

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double taxation

dual citizens

Fil-Ams

US-Philippine tax treaty

Mon Abrea

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