Exemptions from Travel Tax
- Government officials and employees traveling on official business.
- Persons whose fares are paid from Philippine government funds.
- Accredited foreign diplomatic and consular officials and their immediate families and authorized household staff.
- Officials, consultants, experts, and employees of the United Nations and related agencies, and those exempt under laws, treaties, or agreements.
- Personnel of multinational companies with regional headquarters in the Philippines but not engaged in business therein.
- Private company officials and employees on official business with prior aggregate travel tax payments of ₱4,000 or more in the calendar year.
- Crew members of ships and airplanes on international routes going to join or leave their vessels or planes.
- Filipino citizens permanent residents abroad with less than one year’s stay in the Philippines whose fares are paid appropriately.
- Bona fide students with studies abroad approved by the NEDA Scholarship Committee.
- Non-professional contract workers with approved contracts and their spouses and dependents aged 21 or below.
- Infants aged two years or below.
Payment for Non-Revenue Tickets
- Travelers on non-revenue tickets pay travel tax according to the ticket classification unless exempted.
- Airline and ship personnel traveling on official company business are exempt.
- Discounted tickets and service fee tickets are not considered non-revenue for exemption purposes.
Collection Procedures
- For departing passengers: travel tax collected by carrier or travel agency issuing the ticket, remitted to the Bureau of the Treasury within 10 days after the month of collection.
- For arriving passengers: tax paid by the passenger within 30 days from arrival, based on the foreign fare paid.
Capacity to Pay Requirement
- Travelers must demonstrate capacity to pay the total travel costs when applying for a Tax Clearance.
Rulemaking and Implementation
- The Secretary of Finance and Secretary of Tourism mandated to promulgate rules and regulations to implement and effectively collect the travel tax.
Penalties for Violations
- Violations or material misrepresentations related to the travel tax incur penalties:
- Imprisonment from 2 to 5 years or
- Fine from ₱2,000 to ₱10,000 or both.
- Such violations result in revocation of government-granted privileges, permits, and authorizations.
- For corporate offenders, penalties apply to principal officers; alien officers face deportation proceedings.
- Public officials additionally face dismissal and perpetual disqualification from office.
Repealing and Effectivity Provisions
- Repeals or modifies conflicting provisions in Republic Act No. 1478, Republic Act No. 6141, and other laws or rules.
- The Decree takes effect immediately upon issuance.