{
  "url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-philippines-order-1978/note",
  "json_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-philippines-order-1978/note.json",
  "legislation": "uksi/1978/184",
  "legislation_title": "The Double Taxation Relief (Taxes on Income) (Philippines) Order 1978",
  "legislation_url": "https://openlegislation.uk/double-taxation-relief-taxes-on-income-philippines-order-1978",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "Under the Convention with the Philippines scheduled to this Order, certain trading profits (not being profits arising through a permanent establishment in the other country), pensions (other than Government pensions) and the earnings of temporary business visitors are (subject to certain conditions) to be taxed only in the country of the taxpayer's residence. Government salaries and pensions are normally to be taxed by the paying Government only. The remuneration of visiting teachers and certain payments made for visiting students are (subject to certain conditions) to be exempt in the country visited.\nWhere income continues to be taxable in both countries, relief from double taxation is to be given by the country of the taxpayer's residence.\nThe Convention provides that where a United Kingdom company pays a dividend to a resident of the Philippines (other than a company which controls 10 per cent or more of the voting power in the paying company) the recipient will, subject to certain conditions, receive the tax credit to which an individual resident in the United Kingdom and in receipt of such a dividend would be entitled, less income tax at a rate not exceeding 25 per cent on the aggregate of the dividend and the tax credit. Dividends paid by Philippine companies to residents of the United Kingdom will, subject to certain conditions, be taxable in the Philippines at rates not exceeding 15 per cent, if the recipient is a United Kingdom company which controls at least 10 per cent of the voting power in the company paying the dividends, and 25 per cent in all other cases.\nThe maximum rate of tax to be imposed by the country of source upon interest paid to a resident of the other country will, in general, be 15 per cent. The rate of tax, however, is not to exceed 10 per cent where the interest is paid by a company in respect of the public issue of bonds, debentures or similar obligations. Interest received by a local authority or instrumentality of either country will not be taxed in the other country.\nThe rate of tax in the source country on royalties flowing from one country to the other is, in general, not to exceed 25 per cent. But royalties in respect of films and broadcasting tapes, or paid by an enterprise registered with the Philippine Board of Investments and engaged in preferred areas of activity, are to be taxed at a rate not exceeding 15 per cent.\nThere is provision for the taxation of capital gains on immovable property by the country in which the property is situated. Capital gains arising from the disposal of movable property will normally be taxed only in the country of the taxpayer's residence unless they arise from the disposal of assets of a permanent establishment or fixed base which the taxpayer has in the other country.\nThere are also provisions safeguarding nationals and enterprises of one country against discriminatory taxation in the other country and for the exchange of information and consultation between the taxation authorities of the two countries.\nThe Convention is to take effect in the United Kingdom as respects income tax and capital gains tax for the tax year 1977/78 and subsequent years and as respects corporation tax for the financial year commencing on 1 April 1977 and subsequent years.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1978/184/note",
    "retrieved_at": "2026-10-29T19:40:46.463585+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}