Travel Tax - Procedure

Procedures in Obtaining Travel tax Privileges:
(Travel Tax Primer may be accessed at webpage: www.tieza.com.ph)

 

A.  If ticket was issued outside the Philippines

  1. Secure original documents specified for either exemption or reduced rate (see Travel Tax info below)
  2. Proceed to the nearest TIEZA Travel Tax Office:
    1. Show original documents for authentication of its photocopies
      (Note: original of some documents have to be submitted)
    2. Pay travel tax and/or processing fee
    3. Wait for release of certificate and official receipt (OR)
  3. Present the  certificate of Travel Tax Exemption/Reduced Travel Tax/OR to airline check-in counter at the airport

 

Note: Holders of ticket issued abroad and internet tickets need to submit to carriers or their duly authorized representative, Travel Tax Exemption Certificate, or Reduced Rate Certificate or copy of TIEZA O.R., as the case may be, for validation of their booking or reservations.

 

 B.  If ticket will be issued in the Philippines

  1. Secure original documents specified for either exemption or reduced rate (see Travel Tax info below)
  2. Proceed to the nearest TIEZA Travel Tax Office:
    1. Show original documents for authentication of its photocopies
      (Note: original of some documents have to be submitted)
    2. Pay processing fee
    3. Wait for release of certificate and official receipt (OR)
  3. Submit the Travel Tax Exemption/Reduced Travel Tax Certificate to the airline ticketing/travel agency office for the issuance of the air ticket.

 

Procedures in Paying the full Travel Tax:

A.  For those with tickets issued outside the Philippines or  with internet tickets, payment is direct to any TIEZA Travel Tax Office or Travel tax  counters at the airports

B.  For those whose tickets will be issued in the Philippines, payment is through the airline/travel agency.

 

IMPORTANT REMINDERS:

  1. Travel Tax Exemption Certificate/ Reduced Travel Tax Certificate can only be issued by any TIEZA Travel Tax Office.
  2. Air tickets which will be issued in the Philippines will only be released upon payment of the Travel Tax or submission of the original Travel Exemption/ Reduced Travel Tax Certificate, if applicable, to the airline ticketing office.
  3. Generally, the travel tax certificate is valid for one use/departure and its validity period varies depending on privilege categories, examples:

 

 Exemption:

  • For permanent residents of foreign country – one year from the date of latest arrival
  • For children below 2 years old-2nd birth date if within one year from date of issuance of the certificates

 

 Reduced Rate:

  • For minors about 2 but below 12 years old-12thbirth date if within one year from date of issuance of the certificates
    • For dependent children of OFW-21st birth date

 

TRAVEL TAX INFORMATION

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, and Republic Act 9593:

    1. Citizens of the Philippines
    2. Permanent Resident foreign Nationals.

 

IMMIGRATION STATUS

DESCRIPTION

13

Quota or Preference Immigrant Visa

13 A

Visa issued to an Alien Spouse of Philippine Citizen

13 B

Child born outside the Philippines by a 13 A Mother

13 C

Child born in the Philippines by a 13 A Mother

13 D

Los of Citizenship by a Filipino Woman by her Marriage to an Alien

 13 E/ RP#

Returning Resident

13 G / NB

Former Natural-born Citizen of the Philippines who was Naturalized by a Foreign Country

TRV

Temporary Resident Visa

RA 7919

Alien Social Integration Act of 1995

RC / RFC / IC

Recognition as Filipino Citizen

RA 7837

Permanent Resident-Filipino Veterans of World War II

EO 324

Illegal Aliens Who Entered the Philippines Before Jan.1, 1984 and Continuously Resided in a unlawful Status

PD 730

Granting permanent Residence to certain alien Non-Immigrants

 

  1. Non-Immigrant Foreign Nationals who have stayed in the Philippines for more than one (1) year

 

PERSONS NOT COVERED BY THE TREAVEL TAX LAW 

NON-IMMIGRANT FOREIGN NATIONALS NOT COVERED BY THE TRAVEL TAX LAW

(TIEZA FORM 356 if less than a year stays in the Philippines)

 

IMMIGRATION STATUS

DESCRIPTION

E O 408 / EO

Tourist  without a visa

BB / RA 6768 / 1 YR

Balikbayan

9 A / MCL 07-21

Temporary Visitor coming for business or for pleasure or for reasons of health

9 B

Transit passenger

9 C

Foreign Seaman

 9 D

Treaty Trader /Investor

 9 E

Foreign Government Officials (if more than one year secure TEC)

9 F

Foreign Students

9 G

Pre-Arranged Employee

47 A2 / PEZA

Special Non-Immigrant Visa

47 B

Refugees

PD 1034

Executives or Multinational Companies

EO 63 / EO 226

RA 8756

--SIRV

Omnibus Investments Act of 1987           

 

 

--Special Investor Resident Visa

RA 7227

--SSIV

--SSRV

--SSWV

--SCWV

Bases Conversion and Development Act of 1992           

 

--Subic Special Investor Visa

--Subic Special Retiree Visa

--Subic Special Working Visa

--Subic 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

LO 1911 / LOI

Granting No Visa  entry for initial stay of 7 days for           

 

Chinese Nationals who are holders of

HK-British-HK

SAR Passport

EO 21

Stay valid for 21 days

RA 9225

W/PP

Dual  Passport (if arrival is stamped in Philippine passport tax secure TEC)

RA 7922 / CEZA

Cagayan Special Economic Zone

US MILITARY

VFA-USA NS Pecos

SSP

Special Study Permit (Student Visa)

APEC / ABTC

APEC Business Travel card

PROBITUONARY VISA

Special Non-immigrant Visa

SVEG / EO 758

Special Visa for Employment Generation effective March 9,2009

MCL – 08 – 003

No Visa Required – temporary visitor

RA 9728 / FWV

FAB Working Visa (Freeport Area of Bataan)

 

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

Privilege reduced rate           

 

For overseas Filipino

Workers (OCWs) dependents

PHP 400

PHP 300

 

Who can avail a travel tax exemption/ reduced rate and  What are the documents required?
(Presentation of original 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
        1. Certification from the office of Protocol, Department of Foreign Affairs or Embassy /Consulate
      •  Employees of the United Nations (UN)  Organizations or its agencies
        1. Valid UN passport
        2. 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

      • 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.
        1. Government Transport Request (GTR) or certification from the US Embassy
           
      • Overseas Filipino Workers Travelling to Their Worksite
        1. If hired through POEA, Overseas Employment Certificate (OEC) or E-receipt from POEA
        2. 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
        1. Certification from the Civil Aeronautics Board of the Philippines that crew member is joining his aircraft,. Indicating name of crew member, position and location of aircraft.
           
      • Filipino permanent residents abroad whose stays in Philippines is less than one year.
        1. Copies of the ID pages of passport and stamp of last arrival in RP
        2. Proof of permanent residence in foreign country (e.g. US Green Card, Canadian Resident Card etc.)
           
      •  Philippine Foreign Service personnel assigned abroad and their dependents
        1. Certification from the Department of Foreign Affairs to this effect
           
      • Philippine Government (excluding government-owned and controlled corporations) employees on official travel.
        1. Certified true copy of approved travel authority or travel order from Secretary concerned to this effect
      • Grantees of foreign government-funded trips
        1. Proof that travel is provided by a foreign government.
      • Students with approved scholarship  by appropriate government agency
        1. 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 and below) – should have not reached 2nd birthday
        1. 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
        1. Certification from  the Board of Investments
      • Those authorized by the President of the Republic of the Philippines
        1. 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 Philippines is less than one year
        1. ID pages of passport and stamp of last departure from and arrival in the Philippines (duration of which is at least one year)
        2. Ticket used in travelling to the Philippines
      • Family members or former Filipino accompanying the latter
        1. Foreign passport of former Filipino or other evidence of former Philippine Citizenship
        2. Birth certificate or adoption papers of children and/or marriage contract of accompanying spouse.

Note: Exemption under RA 6768 I available only if the individual does not fall under any of the exempted categories provided under Sec.2 of PD 1183, s 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 – should not have reached 12th birthday
        1. In case where original passport cannot be presented, original Birth Certificate and photocopy of ID page of passport.
        2. Airline ticket, if already issued
      •  Filipino journalists assignment
        1. Certification from the Office of the Press Secretary and
        2. Certification/Accreditation from the journalists editor or station manager
      • Those authorized by the President of the Republic of the Philippines
        1. Written authorization 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 standard reduced travel tax rate:

      •  Legitimate Spouse of Overseas Contract Worker (OCW)
        1. Passport
        2. POEA Overseas Employment Certificate (OEC) or E-receipt / authenticated copy of balikmanggagawa form of the OCW
        3. Marriage contract
        4. Airline ticket, if already issued
      • Legitimate unmarried children of OFW below 21 years old
        1. Passport
        2. Certificate (OEC) or E-receipt / authenticated copy of balikmanggagawa form of the OCW
        3. Birth Certificate
        4. Airline ticket, if already issued

Note: Privilege may be availed of only if proceeding to workers jobsite.

 

Who may avail of Travel Tax Refunded and what are the requirements?

Refund may granted for the following reasons:
(In cases, submission of photocopy of identification pages of the passport and duly accomplished TIEZA Form 353 – Travel Tax Refund Application)

 

A.  Unused Ticket

      • Copy of the fare refund voucher and/or credit memo certified by the airline authorized personnel
      • Submission of the original flight coupon of the out-Manila portion of the ticket (in case of ticket issued abroad and those without fare refund value)
      • For non-revenue tickets, certification from the airline authorized signatory that it is an unused non-revenue ticket and copy of the plane ticket

B. No-coverage

      • Presentation of passport and photocopy of
        1. Identification  pages and
        2. Page/s wherein bearer’s applicable date of arrival ( and departure as the case may be) is stamped by Philippine Immigration authorities
      • In case original passport cannot be presented, certification from the Bureau of Immigration and Deportation indicating the following:
        1. Passenger’s Identity
        2. Immigration status
        3. Applicable arrival date (and departure as the case may be)
      • Photocopy of ticket

C. Travel Tax Exemption / Reduced Travel Tax

      • Supporting document used as basis for the exemption/reduced tax
      • Photocopy of ticket in certain cases

D. Others

      • Downgraded ticket – certification from the airline that the ticket was downgraded or a certified copy of the flight manifest.
      • Double payment – proof that the same ticket was taxed twice
      • Undue tax – copy of the ticket to show that it is not subject to tax

 

II. Basic Policies on Refund

      • Claims for refund must be made within 2 years from the date of payment
      • Refund checks are crossed checks prepared in the name of the passenger. Claimants other than the passenger need a Special Power of Attorney (SPA) to receive the checks. Check will be uncrossed except upon the request of the payee in person who shall be properly identified.
      •  Travel tax payments for locally issue tickets made through airline companies within the first 15 days of the month are refundable  there from  until the 15th of the succeeding month; those made with the second half are refundable from the airline until the 30th of the next month. Refunds certificates are possessed by the TIEZA main office for submission to the airlines in cases of exemption, reduced travel tax and non-coverage.
      • If a refund certificate is to be issued; only one copy of the documents is required. If refund is to be made by the TIWZA, two copies of each are required. In cases where the travel tax was paid directly to the TIEZA, the original Official Receipt (airline and passenger copies) are required to be submitted. For all locally issued tickets, a certification from the airline on the amount of travel tax collected and the remittance period is needed.
      • For minor payee, parents are to, presents certified true copy of minor’s birth certificate when claiming the checks, unless the parents signed the passport on minor’s behalf. Claimants, other than the parents, need to present the minor’s birth certificate plus SPA duly executed by the parents.
      • The following are the acceptable ID’s for purposes of claiming the refund check:
      1. Passport                                              3.  Driver’s license
      2. SSS/ GSIS ID                                       4. Postal ID