Law Summary

Introduction

Presidential Decree No. 481, issued on June 10, 1974, amends provisions of Presidential Decree No. 138, originally dated March 2, 1973, and its subsequent amendments (Presidential Decrees No. 172, 178, and 301). This decree outlines the tax exemptions applicable to certain personnel of the Department of Foreign Affairs and related agencies upon their return to the Philippines.

Exemption from Duties and Taxes

• Legal Principle: Officers and employees of the Department of Foreign Affairs and associated agencies returning from assignments abroad are exempt from duties and taxes on their personal and household effects.
• Key Definitions:
  • Personal and Household Effects: Items owned by the returning personnel, including one motor car.
  • Regular Assignment: An assignment abroad prior to the issuance of the recall order.
• Important Requirements:
  • Exemption applies to personnel returning after a regular assignment, or upon death, resignation, or retirement.
  • The motor car must be ordered or purchased before the recall order is received.
  • The exemption for personal effects is limited to 30% of the total salary and allowances received during the latest assignment, not exceeding four years.
  • This exemption can only be claimed once every four years.
  • The personnel must have served abroad for a minimum of two years.

Special Provisions for Reparations Mission Personnel

• Legal Principle: Personnel from the Philippine Reparations Mission are granted specific shipping exemptions due to the termination of their agreement with Japan.
• Key Definitions:
  • Reparations Mission Personnel: Employees involved in the Reparations Agreement with Japan.
• Important Requirements:
  • Personal and household effects may be partially shipped back to the Philippines and are exempt from duties and taxes.
  • The total assessed value of the shipments must not exceed the limits set for other returning personnel.

Effective Date

• The decree takes effect immediately upon its signing.

Signatories

• President: Ferdinand E. Marcos
• Executive Secretary: Alejandro Melchor

Key Takeaways

• Returning personnel from the Department of Foreign Affairs and related agencies are granted substantial tax exemptions on personal and household items, including a motor vehicle.
• Specific conditions apply regarding the length of service abroad and the frequency of claiming exemptions.
• Special considerations are made for the personnel of the Philippine Reparations Mission following the termination of their agreement with Japan.
• The decree is effective immediately and underscores the Philippine government's commitment to support its foreign service personnel.