Are you planning a trip abroad from the Philippines? Then you must know about the travel tax imposed by the Philippine Government. The travel tax is a levy imposed on individuals who leave the country, regardless of where their air ticket was purchased. Understanding the rules and regulations related to this tax is essential so that your trip goes smoothly and without any surprises. Read on to learn more about the travel tax in the Philippines!
What Travel Tax in the Philippines?
The citizens of the Philippines, permanent resident aliens, and non-immigrant aliens who have stayed in the country for more than a year are subject to a Travel Tax. The amount due is calculated based on the fares they paid for their trip and can be amended by the Secretary of Finance with approval from the President. (PRESIDENTIAL DECREE No. 1183)
The tax should be at most 15% of the fare, though people 12 or younger only have to pay 50%. Those traveling first class need to spend at least ₱2,000, economy class travelers need to pay ₱1,250, and all others must pay at least ₱750.
Related: 9 Amazing Tax-Free Countries Everyone Should Envy
Who is Exempt from Travel Tax?
The following are exempt from the Travel Tax imposed in Section 1 of this Decree:
- Officials and employees of the Philippine Government or any of its departments, bureaus, and instrumentalities traveling on official business;
- Persons whose fares are paid out of Philippine Government funds
- Foreign diplomatic and consular officials and members of their staff who are duly accredited to the Republic of the Philippines, including the immediate member of their families and household domestics whose entry as such has been authorized by the Philippine Government;
- Officials, consultants, experts, and employees of the United Nations Organization and its agencies, and those exempted under existing laws, treaties, and international agreements;
- Personnel of multi-national companies with regional headquarters at, but not engaged in business in, the Philippines;
- Officials and employees of private companies traveling on official business, duly certified as such by the company under which he is employed and whose fare is paid out of the funds of the company if a such company had already paid an amount exceeding four thousand pesos as travel tax for previous travels during a calendar year;
- Crew members of ships and airplanes plying international routes who are leaving the country to join their vessels or aircraft or to assume their position therein and those being repatriated upon the termination of their employment;
- Filipino citizens who are permanent residents of foreign countries who have stayed in the Philippines for less than one year with fares either paid in an acceptable foreign currency within the Philippines or outside the Philippines;
- Bona fide students whose studies abroad have been approved by NEDA Scholarship Committee;
- Non-professional contract workers whose employment contracts have been approved by the Department of Labor along with their spouses and dependents 21 years below;
- Infants two years old or less.
How do I pay my Travel Tax in the Philippines?
You can pay your travel tax before you travel by visiting any travel agency accredited by the Philippine Tourism Authority (PTA) or by going directly to a PTAA office.
You will need your air ticket receipt, passport, and travel tax exemption certificate, if applicable. You can also pay online through e-payment services such as PayMaya, Gcash, and Coins.PH.
Travel tax payments are non-refundable, so understand the travel tax requirements before booking your travel ticket!
How to Apply for Travel Tax Exempt?
For applications submitted online, the processing time is three (3) working days from the submission date of complete documents under Republic Act 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
To ensure that your application is processed in time, the flight date must be at least three (3) days after you submit your TEC application online. Otherwise, you must process your application onsite at any Travel Tax Office or Airport Counter.
Online TEC applications are processed and evaluated from Monday to Thursday only. If you submit an online application beyond 5 pm or during weekends and holidays, it will be considered submitted on the next working day.
Conclusion
No matter where you travel from in the Philippines, you must know about travel tax regulations. Knowing and understanding travel tax requirements can help ensure your travel experience goes smoothly without any surprises or delays. So, read up on travel taxes before booking your next trip abroad! Happy travels!
Recommended: Professional Tax Receipt (PTR) Made Easy
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