QuestionsQuestions (PRESIDENTIAL DECREE NO. 1205)
PD No. 1205 amends PD No. 1183 by revising the travel tax rates, exemptions, reduced rates for certain passengers, rules on non-revenue tickets, and collection/remittance mechanics.
The travel tax is imposed on (a) all Filipino citizens, (b) permanent resident aliens, and (c) non-immigrant aliens who have stayed in the Philippines for more than one (1) year, leaving the country.
No. The tax applies 'irrespective of the place of issuance of ticket and the form and place of payment.'
A travel tax of P1,000 for first class and P600 for economy class passengers.
A reduced rate of P400 for first class and P300 for economy class may be imposed on those enumerated under the inserted Section 2-A (unless exempt under Section 2).
Yes. The rates may be amended 'from time to time upon recommendation of the Secretary of Tourism, to take effect upon approval by the President.'
Certain persons are exempt from the travel tax only by securing a Travel Tax Exemption Certificate from the Philippine Tourism Authority.
Examples include: (a) Philippine government officials/employees on official business, (b) persons whose fares are paid out of Philippine government funds, (c) foreign diplomatic/consular officials and accredited staff/families, (d) UN officials/agency personnel exempt under treaties/laws, (e) crew members of ships/airplanes plying international routes leaving to join vessels/assume positions, among others listed in Section 2.
Those qualifying include: contract workers and dependents (<=21), accredited Filipino journalists on assignment, GOCC employees on official business, members of specified government-organized missions/exhibits, children age 2-12, first-time emigrants with valid emigrant visas, steerage class passengers, employees traveling on non-revenue/discounted/service-fee tickets as part of employment contracts, spouses/dependents of airline/shipping personnel on non-revenue tickets, recipients of foreign government awards/grants, and persons authorized by the President for national interest.
Yes. 'Those authorized by the President of the Philippines for reasons of national interest' appears in both Section 2 (exemptions) and Section 2-A (reduced rates), raising a potential need to determine the intended classification in application.
Non-revenue tickets generally require payment of travel tax under Section 1 based on ticket classification, except officials of travel operators/airline/shipping companies travelling on official company business.
Discounted tickets and tickets with service fees shall not be considered non-revenue tickets 'for the purposes of exemption.'
The carriers or their agents issuing the tickets collect the tax, and carriers remit collections to the Philippine Tourism Authority.
For non-commercial carriers or private air crafts, remittances and submission of reports to the Philippine Tourism Authority are the responsibility of the charterer or the owner of the private aircraft.
Section 5 of PD 1183 is repealed; thus, 'no tax clearance shall be required for purposes of travel.'
The Secretary of Tourism, as Chairman of the Board of the Philippine Tourism Authority, may promulgate rules and regulations and impose fines and surcharges to carry out the decree and ensure effective collection.