Question & AnswerQ&A (BIR REVENUE MEMORANDUM ORDER NO. 31-94)
The main purpose is to document the internal procedures for processing applications of Balikbayans for travel tax exemption as provided under Presidential Decree No. 1183, as amended by Executive Order No. 283, and to monitor and evaluate the quality of services provided by the BIR for this exemption.
The Tax Assistance Unit of Revenue Region No. 6 (Manila) is tasked with processing applications and issuing certifications for travel tax exemption purposes.
The Balikbayan must be physically present if 18 years old and above. A representative may apply only if the Balikbayan is 17 years old and below, 60 years old and above, or for meritorious reasons in other cases.
The application for travel tax exemption must be filed within one year from the date of arrival in the Philippines.
The requirements include: a Philippine passport; proof of permanent residence abroad (such as a Certification of Residence issued by a Philippine Embassy/Consulate or appropriate passport entries); proof of income tax payment if employed (original/copy of income tax return and official receipt); or a Certification of Unemployment/No Income for dependents aged 18 to 59 issued by the Philippine Embassy/Consulate or appropriate authority.
The Balikbayan shall be advised to file a tax return and pay the necessary income tax if proof of payment is not available.
A designated officer or signatory in the Tax Assistance Unit shall sign the certification after verifying the submitted documents.
The certification numbering is chronological and preceded by the year when the certification is issued.
The Balikbayan must pay the documentary stamp tax and the certification fee before issuance of the certification.
Balikbayans are requested to complete a survey form upon issuance of the certification. The Tax Assistance Unit tabulates survey results weekly and submits a report to the Regional Director. This survey aids in evaluating the efficiency and effectiveness of the unit.