FILIPINOS VISITING THE PHILIPPINES
• BALIKBAYAN PRIVILEGE • TRAVEL TAX • DUTY AND TAX FREE PRIVILEGES • DUTY FREE SHOPPING
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Balikbayan Privilege
Q: What is the Balikbayan Program of the Philippines under Republic Act (RA) 6768?
The Balikbayan Program of the Philippines was enacted in November 1989 to attract and encourage overseas Filipinos to visit the Philippines.
The following categories of persons can avail of the Balikbayan privilege: (a) a Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year from the date of last departure; (b) a Filipino overseas worker (OFW); (c) a former Filipino citizen who had been naturalised in a foreign country and holds a foreign passport.
A 'Balikbayan' is entitled to the following benefits:
(a) Travel Tax exemption;
(b) Visa-free entry to the Philippines for a period of one (1) year, for a foreign passport holder;
(c) Duty-Free shopping privilege of up to US$2,000.00 (US$1000.00 as arriving Balikbayan and US$1000.00 as arriving passenger) provided that: (i) shopping must be done within two days upon arrival; (ii) duty free shopping privilege can be availed of only once a year; and (iii) purchases must be made personally by the Balikbayan.
The Balikbayan privilege is extendible to legitimate members of the family (i.e. spouse and children) of individuals in the above-mentioned categories, who are holders of Filipino passports ONLY IF they a re travelling to the Philippines together with the above-mentioned qualified individual.
It can also be availed of by legitimate members of the family (i.e. spouse and children) of individuals in the above-mentioned categories, who are aliens or holders of foreign passports, ONLY IF they are travelling to the Philippines together with the above-mentioned qualified individual.
In order to avail of the privilege, qualified Filipino citizens need to present only their Philippine passports showing the date of last exit from the Philippines, which should not be less than 1 year. Aside from their foreign passports showing date of last exit from the Philippines, former Filipino citizens need to present their old Philippine passport or Philippine birth certificate. In the absence of these documents, they can present foreign naturalisation papers to show former Philippine citizenship or certification from adopted country.
Family members of the former Filipino citizen who are travelling with the Balikbayan should present passports and any of the following: a) birth certificate, in case of children; b) marriage certificate, in case of spouse; c) adoption papers, in case of legally adopted children.
The Commissioner of Immigration Andrea D. Domingo informed the Department of Foreign Affairs on 04 June 2001 that, "All Immigration Officers at authorised ports of entry shall grant the benefits and privileges to all Balikbayans and Former Filipinos included every time they enter the country to visit, regardless of their frequent travel". This means that the above categories of persons could now avail of the Balikbayan benefits and privileges regardless of the number of times they enter the country within a year.
Travel Tax Exemption
Q: I am married to an Australian and I'm planning to go to the Philippines as soon as possible. I heard about the travel tax exemption. Could you please elaborate on this and how could this exemption be availed of an unemployed one?
The following individuals are required by the Philippine Government to pay the Travel Tax (PhP2,700 for first class passage; PhP1,620 for economy class passage) every time they depart the country for an overseas destination:
1. Filipino citizens
2. Permanent resident aliens
3. Non-resident aliens who have stayed in the Philippines for more than a year.
The following Filipino citizens are exempted from the payment of Travel Tax pursuant to Sec. 2 of PD 1183, as amended:
1. Filipino overseas contract workers.
2. Filipino permanent residents abroad whose stay or visit in the Philippines is less than one year.
3. Infants (2 years and below). Also exempted are foreign diplomatic representatives in the Philippines, United Nations employees, US military personnel, international carrier crew, Philippine foreign service personnel (i.e., officials and employees of the Philippine Government who are assigned in Philippine foreign service posts and who are returning to their country of assignment), Philippine government employees (who are on official travel), bona fide students on scholarships and personnel of multinational companies.
Non-immigrant aliens, who have not stayed in the Philippines for more than a year, is exempted from the Travel Tax.
Q: What are the requirements for the application of a Travel Tax Exemption Certificate?
The following documents need to be submitted to the Philippine Tourism Authority (PTA) in order to secure a Certificate of Exemption from payment of Travel Tax:
For Permanent Residents:
1. Official document issued by the foreign governments concerned evidencing the grant of permanent resident status to the Filipino citizen e.g. Certificate of Evidence of Resident Status (Form 283) in Australia, US Green Card, etc.
2. Copies of ID pages of passport and stamp of last arrival in the Philippines.
3. Philippine Income Tax Return for the previous year for those between 18- 60 years old and are employed. The ITR may either be: - An Information Return (BIR Form 1703) for those who did not derive income in the Philippines, or - The appropriate ITR form prescribed by the Bureau of Internal Revenue (BIR) for those who derived income in the Philippines.
4. If unemployed, a Certificate of Unemployment issued by the Philippine Embassy or Consulate.
If unemployed, or with no source of income for the preceding year, a Certificate of Unemployment may be obtained from the Embassy or Consulate nearest your place of residence upon request in writing by the person concerned, or by an authorised person on behalf of the applicant, and upon submission to the Embassy/Consulate of the following documents: a. Statutory Declaration of the applicant, to be accomplished under oath and signed by a Justice of the Peace stating that he/she is unemployed; b. Photocopies of data and visa pages of the applicant's Philippine passport; c. Statutory Declaration of the person supporting the applicant to be accomplished under oath and signed by a Justice of the Peace stating that he/she confirms the applicant's unemployment and his/her financial support for the applicant (or copy of Income Tax Return of the person supporting the applicant wherein the latter's name appears as a dependent); and d. Self-addressed, stamped envelope (preferably Express Post or registered Post envelope) for the return of applicant's document.
For Overseas Filipino Workers:
1. Valid passport
2. Employment Certificate - Valid Overseas Employment Certificate (OEC) from the Philippine Overseas Employment Administration (POEA), if hired through this agency. The OEC serves as the travel tax exemption certificate; workers need not go to the Philippine Tourism Authority (PTA) for the travel tax exemption certificate. - Certificate of Work or Employment issued by the Philippine Embassy/Consulate in the place of hire or employment (contract authenticated by the Philippine Embassy or Consulate) for those directly hired abroad. The exemption is valid only for travel to the place of work.
For Infants:
1. Photocopy of passport.
2. Certified true copy of birth certificate Originals of the documents need to be shown to the PTA when submitting the copies thereof. The exemption shall not be granted in the event that the passenger's permanent resident status has lapsed or he has stayed in the Philippines for more than one year, whichever comes first.
The Travel Tax Certificate of Exemption may be obtained from:
The Philippine Tourism Authority (PTA) Travel Tax Offices (Main Office - Revenue Department, PTA, Room 117, DOT Building, TM Kalaw Street, Ermita Manila, Philippines, Tel Nos. (632)5253 029/ (632) 5247 734
NAIA Travel Tax Counter - Departure Lobby, Terminal 1 and 2, NAIA, Paranaque, Metro Manila, Tel No. (632) 8771-109 local 3348).
A PHP100.00 processing fee is collected for every certificate issued.
Q: What are the reduced Travel Tax rates and what are the categories of qualified applicants?
The following citizens are eligible for reduced rates of travel taxes upon submission of documentary requirements:
1. Minors from 2-12 years old: PHP1,350.00 (if travelling first class); PHP810.00 (if travelling economy class). The minor should submit a copy of birth certificate or ID pages of passport 2. Legitimate spouse of Overseas Filipino Worker: PHP400.00 (if travelling first class); PHP300.00 (if travelling economy class). The documents required consist of the Passport, Original Marriage Contract and authenticated copy of Overseas Employment Certificate of OCW from POEA or Balik Manggagawa Form issued by the POEA
3. Legitimate unmarried children of OCWs below 21 years old: PHP400.00 (if travelling first class); PHP300.00 (if travelling economy class). The documents required consist of the Passport, Original Birth Certificate, authenticated copy of Overseas Employment Certificate of OCW from POEA or Balik Manggagawa Form issued by the POEA. Originals of the documents need to be shown to the PTA when submitting the copies thereof.
A travel tax primer can be accessed at the PTA's website: www.philtourism.com.
For more information on the travel tax rates or travel tax exemptions, the following office can be contacted: Revenue Department Philippine Tourism Authority Room 117, DOT Bldg., T.M. Kalaw, Rizal Park, Manila Tel: (63 2) 525-3029; 524-7734; 524-7141 local 100/103/109 Email: [email protected] or [email protected]
Duty and Tax Free Privileges
Q: I am a Filipino/former Filipino citizen returning to the Philippines. Am I entitled to duty and tax-free privileges?
Section 105 of the Tariff and Customs Code of the Philippines as amended by Executive Order No. 206 provides duty and tax free privileges to the following individuals, the extent of which depends on their particular status:
(1) Returning Resident. A Returning Resident is a Filipino national who had gone abroad and is now returning. Only those Returning Residents who have uninterrupted stay abroad for at least six (6) months prior to their return to the Philippines are entitled to duty and tax free privileges.
(2) Overseas Contract Worker (OCW). An OCW is a Filipino national who is working in a foreign country under an employment contract. Only OCWs who have uninterrupted stay abroad for at least six (6) months are entitled to duty and tax-free privileges.
(3) Former Filipino. A former Filipino national is one who has acquired foreign citizenship abroad and is now returning. Only former Filipinos who are coming to settle permanently in the Philippines and have stayed abroad for six (6) months are entitled to the duty and tax exemption privileges.
Q: Are Balikbayans also entitled to certain duty and tax-free privileges? A Balikbayan is another term for an OFW or a former Filipino. A returning resident is also a BALIKBAYAN when he has stayed abroad for at least one (1) year. Therefore Balikbayans are entitled to duty and tax-free privileges.
Q: What is the extent of duty and tax-free privileges of returning Filipinos or Balikbayans?
The extent varies as follows:
(1) Returning Resident. Personal effects and household goods used by him abroad for at least six (6) months and the dutiable value of which is not more than Ten Thousand Pesos (PHP10,000.00) are exempt from duties and taxes. Any amount in excess of PHP10,000.00 is subject to fifty percent (50%) duty for the first PHP10,000.00 exemption across the board as provided for under Section 105 (F) of the TCCP.
(2) Overseas Contract Worker (OCW). In addition to the privileges granted to Returning Residents as described above, an OCW may be allowed to bring in, duty and tax free, Ten Thousand Pesos (PHP10,000.00) worth of used home appliances provided: a) the quantity is limited to one of each kind. b) the privilege has not been enjoyed previously during the calendar year which fact must be declared under oath by the owner. c) the owner's passport is presented at the port/airport of entry. d) any amount in excess of PHP10,000.00 will be subject to taxes and duties.
(3) Former Filipino. Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal household effects shall be exempt from payment of customs duties and taxes. Provided that the change of residence was bonafide, the privilege of free entry was never availed of before and that the articles are brought from their former place of abode.
Q: Are family members of returning residents, OCW and former Filipinos also entitled to certain privileges?
Yes, provided they themselves satisfy the specifications outlined above.
Q: What are the conditions and limitations attached to tax exemption privileges?
The following are the conditions imposed in availing of the duty and tax privileges:
(1) The Bureau of Customs must be presented with a written endorsement from the relevant government agency.
(2) The goods extended duty and tax-free privileges are not to be sold, bartered nor traded.
(3) The quantity is not commercial. (4) The goods are not prohibited importations. Goods that are restricted or prohibited require endorsement from the proper regulatory agency.
Duty Free Stores Shopping Privileges
Q: What are duty free stores?
Duty free stores are retail establishments licensed by the government to sell duty and tax free merchandise for the convenience of travellers. Government earns revenues from the operations of these stores that are utilised to defray tourism and other related projects.
Q: Where are these stores located?
Duty Free Philippines shops are operated by the Philippine Tourism Authority (PTA) and are located, as follows: (1) Ninoy Aquino International Airport, Pasay City Departure Lounge Arrival Area Arrival Ramp Extension (2) Fiesta Mall Shopping Center, Ninoy Aquino Avenue, Paranaque
Q: Is duty free shopping also allowed at special economic zones?
Duty and tax-free purchase of goods are allowed in the Special Economic Zones, provided such goods are consumed therein. Once these goods are brought out of the ecozones, they become subject to applicable duties and taxes.
Special Economic Zones are selected areas of the country with highly developed infrastructure or which have the potential to be developed into agri- industrial, tourist/recreational, commercial, banking, investment and financial centers.
Q: Who are entitled to duty free shopping privileges?
All passengers arriving from abroad are entitled, subject to the limitations outlined below.
Q: When can arriving passengers avail of the privilege?
All passengers arriving from abroad can avail of the privilege within forty-eight (48) hours from date of arrival, upon presentation of a valid passport, flight ticket and boarding pass.
Q: What are the limits to duty free privileges?
Duty Free privileges of arriving passengers are subject to the following limitations: 1) Amount: a) Balikbayans - 18 years old & above - USD2,000 Minors (below 18 years) - USD250 b) All other Passengers - 18 years old & above - USD1,000 Minors (below 18 years) - USD250
2) Quantity: a) Cigarettes - two (2) reams b) Tobacco - two (2) tins c) Liquor and/or Wine - two (2) bottles d) Non consumable items of each kind whose value exceeds USD200.00 - only one (1)
Q: Can frequent travellers avail of the privilege every time he/she travels?
Yes, but the total purchases for the calendar year must not exceed Ten Thousand US Dollars (USD10,000).
Q: What are the conditions attached to duty free shopping?
The duty-free shopping privilege shall be subject to the following conditions:
1) Purchases shall only be made in US Dollars (USD) or other acceptable foreign currencies.
2) Purchase shall be made within forty-eight (48) hours from date of arrival.
3) The privilege is non-transferable. Purchases shall be made personally by the passenger himself.
4) The Balikbayan privilege can be availed of only once a year and if the Balikbayan arrives again within the year, he/she will be considered a regular passenger for shopping purposes.
5) A minor can purchase consumable items only. A minor cannot purchase liquors, wines, cigarettes, electronics and home appliances.
6) A tourist can purchase electronics and home appliances but the purchase shall be subject to payment of duties and taxes.