Practice question
Two individuals have stipulated foreign-source service income. Ana is a Philippine citizen residing in the Philippines throughout the year. Ben is an alien residing in the Philippines throughout the year. They claim identical residence necessarily gives identical source coverage. No treaty or specific Code exception applies. What is correct?
- Both automatically have worldwide coverage because both reside locally
- Both are automatically exempt from every income tax
- Ana has only Philippine-source coverage because she performed foreign work
- Ana generally has worldwide coverage, while Ben generally has Philippine-source coverage; citizenship and residence must be considered together
- Ben has worldwide coverage but Ana does not
Legal references
- NIRC Sections 4,22,23 and244: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/3896
- RA12066, CREATE MORE Act: https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
- RA12214, Capital Markets Efficiency Promotion Act: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
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