AOW, pension and tax in the Philippines: full AOW, and a company pension that is taxed nowhere
For the AOW the Philippines is a treaty country: since 1 November 2002 an agreement on paying benefits abroad applies, so even a single person gets the full AOW there. Under the 1989 tax treaty the Netherlands taxes your AOW and an ABP pension from government service. A company pension may only be taxed by the Philippines, but the Philippines does not tax the foreign income of a foreign national.
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If you live in the Philippines, the Netherlands taxes your AOW and an ABP pension from government service. Under the tax treaty a company pension may only be taxed by the Philippines, but the Philippines does not tax the foreign income of a foreign national. Your accrued AOW goes with you in full.
Three things to know in advance:
- Two treaties arrange this: the tax treaty from 1989, which leaves out the AOW, and the export agreement from 2001.
- As a result, a company pension is in practice taxed nowhere. You do have to apply yourself for an exemption from Dutch wage tax.
- Child benefit stops, and you usually get no tax credit.
| Income | Netherlands | Philippines |
|---|---|---|
| AOW, Anw | taxed (national law); a single person keeps 70% of the net minimum wage | exempt: foreign income |
| Company pension | exempt, after an exemption statement (article 18) | exempt: foreign income |
| ABP pension from government service | taxed (article 19) | exempt |
| Pension held in own company (director-shareholder) | may also tax (article 18(2)) | |
| Annuity, periodic | exempt according to the treaty text (article 18) | exempt |
| Commutation of an annuity | taxed (national law) | |
| Wages for work in the Philippines | 0 to 35% |
How much AOW do you get?
Under article 9a of the AOW, anyone living outside the Netherlands gets the married rate: 50% of the net minimum wage, even if you live alone. The agreement with the Philippines sets that rule aside. Article 4 provides that a benefit may not be restricted solely because you live in the other country. A single person thus keeps 70% of the net minimum wage. The agreement was signed in Manila on 10 April 2001 and has applied since 1 November 2002. In 2024 the minister wrote that the Netherlands exports the full AOW to the 36 treaty countries, including the Philippines.
The agreement also covers the Anw (survivors) and benefits for sickness and incapacity for work. What does not go with you:
- Child benefit. It was in the agreement until 2015, but a protocol took it out. Article 7b of the Child Benefit Act gives no child benefit for a child living outside the Netherlands.
- The Supplementary Benefits Act and the AIO supplement. They are not in the agreement.
The SVB can have your details checked through the Philippine social security funds SSS and GSIS. If you do not respond within 3 months to a request for information, your benefit can be stopped (article 9).
Which country taxes what?
The tax treaty was signed on 9 March 1989 and has applied since 20 September 1991. It divides your income like this:
- Company pension (article 18): only the country of residence, so the Philippines. Exception: a pension held in your own company, which the Netherlands may also tax.
- ABP pension from government service (article 19): the Netherlands may tax. If you worked for a profit-making government enterprise, article 18 applies.
- AOW, Anw and WIA: the treaty has no article for them, and no residual article for other income either. Then each country's own law applies, and the Netherlands taxes (Income Tax Act, article 7.2).
- Annuity: according to the treaty text "any annuity" goes to the country of residence. The Belastingdienst overview nevertheless puts the annuity with the Netherlands. The Belastingdienst itself writes that the treaty text prevails. Check before you leave.
The Philippines taxes a foreign national only on income from Philippine sources (section 23(D) of the tax code), even if you live there. Your Dutch pension, AOW, annuity and savings interest are therefore not taxed there. As a result, a company pension, which the treaty gives to the Philippines, is in practice taxed nowhere.
If you want your pension fund to stop withholding wage tax, you apply to the Belastingdienst for an exemption statement. For that you need your citizen service number (BSN), and proof that you are tax resident in the Philippines. That proof is the "statement of tax liability in your country of residence", which the Philippine tax authority BIR must sign. Whether the BIR does so, we did not find in an official source. So start in good time. See also receiving your pension abroad.
Do you get a tax credit?
Usually not. For the Belastingdienst the Philippines falls under "other countries". You keep the entrepreneur's deduction and the tax-free allowance in box 3. A tax credit, a reduction of the tax you pay in the Netherlands, you do not get on your AOW: the SVB gives no tax part of the wage tax credit. You only get a premium part if you stay insured in the Netherlands for the national insurance schemes.
Are you leaving before your AOW age?
Anyone who goes to live outside the Netherlands is usually no longer insured for the AOW. Each year without insurance means 2% less AOW later. You apply for voluntary insurance within one year after you stop being insured.
What else does the Netherlands keep hold of?
An annuity, pension entitlement or substantial interest travels with you under a protective assessment: a tax assessment that stays in place, but that you do not pay straight away. Outside the EU you do not get the deferral automatically. You request it in writing, it runs for ten years at most, and for pension and annuity you usually provide security. If you sell a substantial interest within six years of leaving, the Netherlands may still tax the gain under article 13(5) of the treaty. The treaty has no article on assistance in collecting taxes.
The Netherlands also counts when you leave an inheritance. If you die within ten years of leaving, or make a gift in that time, you still count as a resident under article 3 of the Inheritance Tax Act. The Philippines also levies an estate tax of 6% on the estate, and for someone who lives there worldwide assets count. There is no treaty for inheritance tax. Both countries credit what the other levies, but have this checked by a tax adviser. See inheritance tax after emigration.
In Vertrekklaar this is phase 1 of 5 of the journey, step 1.2: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to the Philippines or go straight to step 1.2 in the open plan.
What this means for your numbers →
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Tax treaty Netherlands–Philippines (Manila, 9 March 1989), articles 13, 18, 19 and 25 — wetten.overheid.nl
- Agreement Netherlands–Philippines on the export of social insurance benefits (Manila, 10 April 2001), text in force since 1 July 2015 — wetten.overheid.nl
- Agreement on the export of benefits — the 2002 to 2015 version, still with child benefit — wetten.overheid.nl
- Answers to parliamentary questions 2024Z02891 — the Philippines among the 36 treaty countries with full AOW export — open.overheid.nl
- General Old Age Pensions Act, article 9a — the married rate outside the Netherlands — wetten.overheid.nl
- General Child Benefit Act, article 7b — no child benefit for a child living outside the Netherlands — wetten.overheid.nl
- Belastingdienst — treaty states for non-resident income tax, January 2026, the Philippines on p. 38 — download.belastingdienst.nl
- Belastingdienst — applying for exemption from wage tax, with the statement of tax liability in your country of residence — belastingdienst.nl
- Belastingdienst — deductions and credits when you live in another country — belastingdienst.nl
- SVB — what is deducted from your AOW when you live outside the Netherlands — svb.nl
- National Internal Revenue Code, section 23(D) — a foreign national pays tax only on Philippine income — lawphil.net
- SVB — 2% less AOW for every uninsured year, and voluntary insurance within one year — svb.nl
- Belastingdienst — the protective assessment and deferral outside the EU (2026 tax return notes) — belastingdienst.nl
- Inheritance Tax Act 1956, article 3 — for ten years after leaving, a Dutch national still counts as resident — wetten.overheid.nl
- TRAIN law (RA 10963), sections 84 to 86 — the Philippine estate tax of 6% — lawphil.net
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