Philippines, up to 5 years of Tax Treaty

(Reported from Internal Revenue Service (IRS), US government Publication 901)

Tax treaty for Professors, Teachers, and Researchers

An individual who is a resident of the Philippines on the date of arrival in the United States and who is temporarily in the United States primarily to teach or engage in research, or both, at a university or other recognized educational institution is exempt from U.S. income tax on income from the teaching or research for not more than 2 years from the date of arrival in the United States. The individual must have been invited to the United States for a period not expected to be longer than 2 years by the U.S. Government or a state or local government, or by a university or other recognized educational institution in the United States.

This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest. The exemption does not apply if, during the immediately preceding period, the benefits described in Article 22(1) of the treaty, pertaining to students, were claimed.

Tax treaty for Training, education, studying and recipients of grants, fellowships, scholarships and awards

An individual who is a resident of the Philippines on the date of arrival in the United States and who is temporarily in the United States primarily to study at a university or other recognized educational institution in the United States, obtain professional training, or study or do research as a recipient of a grant, allowance, or award from a governmental, religious, charitable, scientific, literary, or educational organization is exempt from U.S. income tax on the following amounts.

  • Gifts from abroad for maintenance, education, study, research, or training.
  • The grant, allowance, or award.
  • Income from personal services performed in the United States of up to $3,000 each tax year.

An individual is entitled to the benefit of this exemption for a maximum of 5 years.

An individual who is a resident of the Philippines on the date of arrival in the United States and who is temporarily in the United States as an employee of, or under contract with, a resident of the Philippines is exempt from U.S. income tax for a period of 12 consecutive months on up to $7,500 received for personal services if the individual is in the United States primarily to:

  • Acquire technical, professional, or business experience from a person other than that resident of the Philippines or other than a person related to that resident, or
  • Study at an educational institution.

An individual who is a resident of the Philippines on the date of arrival in the United States, and who is temporarily in the United States (for no more than 1 year as a participant in a program sponsored by the U.S. Government) primarily to train, research, or study is exempt from U.S. income tax on income received for personal services for the training, research, or study, up to a maximum of $10,000.