Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1183)
The decree aims to amend and consolidate the provisions on travel tax, provide a simplified manner of collection, impose penalties for violations, lessen restrictions on foreign travel, and provide adequate funds for government programs.
All citizens of the Philippines, permanent resident aliens, and non-immigrant aliens who have stayed in the Philippines for at least one year are subject to the travel tax.
The travel tax is based on the fares of the trip from the Philippines, the return trip, and fares paid in a foreign country in continuation of the trip. It shall not exceed 15% of the fare but cannot be less than PHP 2,000 for first class, PHP 1,250 for economy class, and PHP 750 for others.
Yes, exemptions include government officials traveling on official business, persons whose fares are paid by the government, accredited foreign diplomats and their staff, officials of the UN and its agencies, certain multi-national company personnel, students approved by NEDA Scholarship Committee, certain contract workers, and infants two years old or below, among others.
Individuals aged twelve years old or below pay only fifty percent of the travel tax imposed.
The carrier and/or travel agency issuing the ticket is responsible for collecting the travel tax from departing passengers and remitting the collections to the Bureau of the Treasury within the first ten days of every succeeding month.
Arriving passengers themselves must pay the travel tax within thirty days from the date of arrival, based on fares paid in a foreign country.
Violators face imprisonment of not less than two years but not more than five years, a fine of not less than PHP 2,000 but not more than PHP 10,000, or both. Additional sanctions include revocation of licenses and dismissal for public officials.
Yes, the Secretary of Finance may amend the Schedule of Travel Tax, but amendments take effect only upon the approval of the President.
The penalty shall be imposed upon the principal officer or officers of such entities. If the officer is an alien, they will also be subject to the Commission on Immigration and Deportation.
Yes, unless exempted, persons on non-revenue tickets must pay travel tax based on the classification of their non-revenue tickets. Discounted tickets and tickets with service fees are not considered non-revenue tickets.
They are to promulgate rules and regulations to carry out the provisions of the decree and ensure effective collection of the travel tax.
They must be able to establish their capacity to pay the overall costs of the travel.
Yes, it repeals or modifies inconsistent provisions of Republic Act No. 1478, Republic Act No. 6141, and other related laws, executive orders, administrative orders, decrees, and rules.