Legal basis and prior law amended
- Section 1 amends Section 2 of Presidential Decree No. 1183, as amended, further restructuring travel tax exemptions.
- Section 2 amends Section 2-A of Presidential Decree No. 1183, as amended, further restructuring reduced travel tax rates.
- Section 4 repeals or modifies all inconsistent laws, orders, issuances, rules, and regulations.
Policy, purpose, and intent
- The Executive Order provides that the travel of certain individuals necessitates either exemption from the travel tax or payment of reduced or preferential travel tax rates.
Travel tax exemptions (Section 1)
- Section 2 of Presidential Decree No. 1183, as amended, is further amended to exempt the following from the travel tax imposed therein.
- Foreign diplomatic and consular officials and members of their staff, duly accredited to the Philippines, are exempt, including immediate members of their families and household domestics whose entry as such has been authorized by the Philippine Government.
- Officials, consultations, experts, and employees of the United Nations Organization and of its agencies are exempt, together with those exempted under existing laws, treaties, and international agreements.
- US military personnel and other US nationals are exempt when traveling on US government-owned or chartered transport facilities or with fares expended out of US Government funds, including:
- US military personnel and their dependents;
- Filipinos in the US military service and their dependents;
- Filipino employees of the US government traveling on US government business; and
- US State Department visitor-grantees traveling on US government business.
- The following groups are exempt:
- Filipino overseas contract workers;
- Crew members of ships and airplanes plying international routes who are leaving the country to assume their positions therein or to join their vessels or airplanes;
- Filipino citizens who are permanent residents of foreign countries, provided they present evidence that they have filed their income tax returns and paid income tax due thereon, if any, to the Philippine government for the preceding year;
- Members of the Philippine foreign service officially assigned abroad who are leaving the country to assume their posts, including their dependents;
- Officials and employees of the Philippine government or any of its departments, bureaus and agencies traveling on official business;
- Persons whose travel is provided or funded by foreign governments with which the Philippine government maintains diplomatic relations;
- Bonafide students whose scholarships have been approved by the appropriate government agency;
- Infants who are two years old or less;
- Personnel of multinational companies with regional headquarters at, but not engaged in business in the Philippines, and their dependents if joining them during the period of their assignments in the Philippines as certified to by the Board of Investments; and
- Those authorized by the President of the Philippines for reasons of national interest.
Reduced travel tax rates (Section 2-A)
- Section 2-A of Presidential Decree No. 1183, as amended, is further amended to impose reduced rates unless otherwise exempted under Section 2 of the same decree.
- A reduced rate of P 1,350 for first class passage is imposed on the following:
- Individuals who are 12 years old or below but over two years of age; and
- Those authorized by the President of the Philippines for reasons of national interest.
- A reduced rate of P 810 for economy passage is imposed on the following:
- Individuals who are 12 years old or below but over two years of age; and
- Those authorized by the President of the Philippines for reasons of national interest.
- An accredited Filipino journalist whose travel is in pursuit of journalistic assignments is subject to the reduced rate structure under Section 2-A as certified to by the Office of the Press Secretary.
- Section 2-A limits the reduced rate application to persons listed above and only when they are not already exempt under Section 2 of the same decree.
Implementing rules and regulations
- Section 3 requires the Secretary of Finance, in consultation with the Secretary of Tourism, to promulgate necessary rules and regulations to effectively implement the Executive Order.
Repeal and inconsistency clause
- Section 4 repeals or modifies all laws, orders, issuances, rules and regulations, or parts thereof, that are inconsistent with the provisions of Executive Order No. 283.