FREE CALCULATOR
OFW Business Income Tax Calculator Philippines 2026
Your salary abroad is tax-exempt, but income from a business, rental property, or sari-sari store in the Philippines is not. Find out what you owe on that.
Important: As an OFW, your income earned abroad from employment is exempt from Philippine income tax under the NIRC. However, if you also own a business, rental property, sari-sari store, or any other source of income located in the Philippines, that income is fully taxable, just like any other self-employed individual. This calculator covers only your Philippine-sourced business or rental income.
Step 1: Enter your Philippine business or rental income
Leave blank if you are not sure. We will compare both tax options either way.
Do OFWs Need to Register This with BIR?
Yes. If you earn income from a business, rental, or any trade located in the Philippines, you need to register that activity with BIR using Form 1901, just like any self-employed individual or sole proprietor. Your OFW status does not exempt this income, only your foreign salary is exempt.
Here is the thing, many OFWs register the business under a family member’s name who manages it locally. In that case, the registration and tax obligations belong to whoever is named on the Certificate of Registration, not necessarily the OFW.
How to Pay via GCash
- Generate your income tax return (1701Q or 1701A) through eBIRForms.
- Open GCash, tap Pay Bills, then select Government, then BIR.
- Select the correct form type, enter the TIN of the registered taxpayer, and the amount due.
- If you are abroad, a family member with access to the registered GCash account can complete the payment on your behalf.
- Always keep the reference number and payment confirmation for your records.
Common Mistakes to Avoid
- Assuming OFW status exempts all income. Only foreign-earned salary from employment abroad is exempt. PH-based business or rental income is fully taxable.
- Not registering the local business at all. Many OFW-funded businesses operate without BIR registration, which means no official receipts and exposure to penalties.
- Mixing up who is responsible for filing. Whoever is named on the Certificate of Registration is responsible for filing and paying, even if the OFW funded the business.
- Forgetting Percentage Tax. If you choose graduated rates instead of the 8% flat tax, you may also need to file 2551Q quarterly.