Collection of Income Tax
Exemption from Income Tax
Philippine Republic Act 8424, otherwise known as the Tax Reform Act of 1997, which took effect on 1 January 1998 and which amended the National Internal Revenue Code of the Philippines provides that Filipino overseas contract workers, seamen and permanent residents abroad are exempt from paying tax for income derived outside of the Philippines starting tax year 1998. However, they were still required to file an Income Information Return. By the year 2001, all Filipino overseas were eventually exempted even from filing an Income Information Return.
Travel Tax Exemption
Travel tax exemption is granted to certain categories of Filipinos living and working abroad, as follows:
Filipino Residents Living Abroad
1. Proof of permanent residence in a foreign country -
Present Canadian landing document issued by the Canadian government evidencing the grant of permanent resident status to the Filipino citizens and submit a copy thereof;
2. Philippine passport - Submit photocopy of:
a. Identification pages and
b. Page showing latest arrival date in the Philippines
Note : The exemption shall not be granted if the passenger's permanent resident status has lapsed or he/she has stayed in the Philippines for more than one (1) year, whichever comes first.
1. Overseas Employment Certificate (OEC) - Certificate issued by the Philippine Overseas Employment Administration in Manila or OEC issued by the Labor Attache's Office in Toronto.
In such a case, there is no need to secure exemption certificate from the Philippine Tourism Authority.
Dependents of Overseas Contract Workers
1. Legitimate spouse
- Marriage contract
- Overseas Employment Certificate (OEC) form issued by the POEA or the Labor Attache's Office in Toronto
2. Legitimate unmarried children below 21 years old
- Passport - Birth certificate - Overseas Employment Certificate OEC Form issued by the POEA or the Labor Attache's Office in Toronto
In such a case, originals of the documents are to be presented and copies submitted.
A P100.00 pesos processing fee is collected for every certificate issued in Manila. The processing fee for the OEC issued by the Labor Attache's Office in Toronto is equivalent to the prevailing Canadian dollar value of CAD$ 3.71.
To secure the travel tax exemption certificate in the Philippines, contact the Philippine Tourism Authority at: DOT Building Agrifina Circle, Rizal Park, Manila, Tel no. 521-7141; 523-5697; 523-2903