Travel Tax Primer

Travel Tax Primer Philippine Tourism Authority Department of Tourism Building TM Kalaw St., Ermita, Manila What is Travel Tax? The travel tax is a levy imposed by the Philippine government on the following individuals who are leaving the country irrespective of the place where the air ticket is issued and the form or place of payment, as provided for by Presidential Decree (PD) 1183, as amended: A. Citizens of the Philippines; B. Permanent resident aliens whose immigration status maybe any of the following: Sec. 13 Quota or Preference Immigrant Visa Sec. 13 A Visa issued to an Alien Spouse of Philippine Citizen Sec. 13 B Child born outside the Philippines by a 13A Mother Sec. 13 C Child born in the Philippines by a 13A Mother Sec. 13 D Loss of Citizenship by a Filipino Woman by her Marriage to an Alien Sec. 13 E Returning Resident Sec. 13 G Former Natural-born Citizen of the Philippines who was Naturalized by a Foreign Country TRV Temporary Residence Visa RA 7919 Alien Social Integration Act of 1995 RC /RFC Recognition as Filipino Citizen RA 7837 Permanent Resident C. Non-resident aliens who have stayed in the Philippines for more than one(1) year. Note: Non-immigrant aliens who have not stayed in the Philippines for more than a year are not covered by the travel tax. However, PTA F356 need to be prepared by the ticketing officer for passengers with the following immigration status except for FGO & their dependents (Sec. 9E) who have stayed for more than a year, they have to secure Travel Tax Exemption Certificate. EO 408 / E0 Tourist without visa - EO 21 Stay valid for 21 days - 11 Days Stay valid for 11 days - 7 Days Stay valid for 7 days BB Balikbayan Sec. 9A Temporary Visitor coming for business or for pleasure or for reasons of health Sec. 9B Transit Passengers Sec. 9C Foreign Seamen Sec. 9D Treaty Trader / Investor Sec. 9E Foreign Government Officials Sec. 9F Foreign Students Sec. 9G Pre-arranged Employee 47 A2/PEZA Special Non-immigrant Visa 47B Refugees PD 1034 Executives of Multinational Companies EO 63 / EO 226 / RA 8756 Omnibus Investment Act of 1987 - SIRV - Special Investor Resident Visa RA 7227 Bases Conversion and Development Act of 1992 - SSIV - Subic Special Investor's Visa - SSRV - Subic Special Retiree Visa - SSRV - Subic Special Retiree Visa - SSWV - Subic Special Working Visa - SCWV - Special Clark Working Visa EO 1037 / SRRV Special Resident Retiree Visa EO 191 Granting No-Visa Entry for Initial Stay of 7 Days for Chinese Nationals who are holders of Macao - Portuguese Passport LOI 911 / LOI Granting No-Visa Entry for Initial Stay of 7 Days for holders of HK-British-HK-SAR Passport As mandated by the law, the taxes are divided among the Philippine Tourism Authority (PTA), the National Parks Development Committee (NPDC), the National Commission for Culture and the Arts (NCCA), Commission for Higher Education (CHED), and the General Fund of the National Government for use in government programs. What are the Travel Tax rates? First Class Passage Economy Class Passage Full rate PHP 2700 PHP 1620 Standard reduced rate PHP 1350 PHP 810 Privileged reduced rate for Overseas Contract Workers' (OCWs) dependents PHP 400 PHP 300 Who can avail of a Travel Tax exemption/reduced rate and What are the documents required? (Presentation of passport required in all cases.) A. Section 2 of PD 1183, as amended, provides that the following are exempted from the payment of the travel tax: Foreign diplomatic representatives Certification from the Office of Protocol, Department of Foreign Affairs or Embassy/Consulate Employees of the United Nations (UN) Organization or its agencies UN passport or Certification of employment from the UN office or its agency Note: Dependents are also exempted if travel is paid for and certified by the UN. For dependents of employees of other UN agencies, a certification and proof from the organization/agency is required. United States (US) Military Personnel including dependents and other US nationals with fares paid for by the US Government or on US Government-owned/chartered transport facilities. Government Transport Request (GTR) or certification from the US Embassy. Filipino Overseas Contract Workers If hired through POEA, Overseas Employment Certificate (OEC) from POEA If directly hired abroad, a Certificate of Employment issued by the Philippine Embassy/Consulate in the place of hire or an employment contract authenticated by the Philippine Embassy/Consulate International carrier crew Certification from the Bureau of Air Transportation that crew member is joining his aircraft, indicating name of crew member, position and location of aircraft Filipino permanent residents abroad whose stay in the Philippines is less than one (1) year. Copies of the ID pages of passport and stamp of last arrival in RP Proof of permanent residence in foreign country (e.g. US Green Card, Canadian form 1000, etc.) Philippine Foreign Service personnel assigned abroad and their dependents Certification from the Department of Foreign Affairs to this effect Philippine government (excluding government-owned and controlled corporations) employees on official travel Certified true copy of travel authority or travel order from Secretary concerned to this effect (Malacanang approval of travel needed for two or more employees and for those with rank of Asst. Secretary and above) Grantees of foreign government-funded trips Proof that travel is provided/funded by a foreign government. Students with approved scholarships by appropriate government agency Certification from concerned Philippine government agency Note: "Student" is defined as a person attending formal classes in an educational institution for the purpose of taking up a course leading to a diploma the duration of which is not less than one year. Infants (2 years & below) In case where original passport cannot be presented, original Birth Certificate and photocopy of ID page of passport. Personnel (and their dependents) of Philippine offices of multinational companies not engaged in business in the Philippines Certification from the Board of Investments Those authorized by the President of the Republic of the Philippines Written authorization from the Office of the President which explicitly entitles the passenger to an exemption B. RA 6768 provides for the exemption of the following from payment of the travel tax: Balikbayans whose stay in the Philippines is less than one (1) year ID pages of passport and stamp of last departure from and arrival in the Philippines (duration of which is at least one year) Ticket used in traveling to the Philippines Family members of former Filipinos accompanying the latter Foreign passport of former Filipino or other evidence of former Philippine Citizenship Birth certificate or adoption papers of children and/or marriage contract of accompanying spouse Note: Exemption under RA 6768 is available only if the individual does not fall under any of the exempted categories provided under Sec. 2 of P. D. 1183, as amended. C. Section 2-A of PD 1183, as amended, states that the following are entitled to a standard reduced travel tax rate: Minors from 2 to 12 years In case where original passport cannot be presented, original Birth Certificate and photocopy of ID page of passport. Filipino journalists on journalistic assignment Certification from the Office of the Press Secretary and Certification/Accreditation from the journalist's editor or station manager Those authorized by the President of the Republic of the Philippines Written authority from the Office of the President which explicitly entitles the passenger to a reduced rate D. Section 2-B of PD 1183, as amended, states that the following are entitled to a privileged reduced travel tax rate: Legitimate spouse of overseas contract worker (OCW) Passport POEA Overseas Employment Certificate (OEC) / balikmanggagawa form Marriage contract Legitimate unmarried children of OCW below 21 years old Passport OEC / balikmanggagawa form Birth certificate