Publishing Letter of Instruction No. 105 dated July 31, 1973 of the President of the Philippines

August 31, 1973 REVENUE MEMORANDUM CIRCULAR NO. 48-73 SUBJECT : Publishing Letter of Instruction No. 105 dated July 31, 1973 of the President of the Philippines TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder Letter of Instruction No. 105 of the President of the Philippines: "MALACAANG Manila LETTER OF INSTRUCTION NO. 105 "TO: All Concerned "It has been almost a year since the leadership of the Republic instituted long-needed reforms in all aspects of Philippine society, a move that has been assessed and endorsed twice by the citizenry. "Much has to be done, but much has been done through all these months. This stage of the movement is now considered an auspicious time for Filipinos overseas to visit their homeland and see for themselves the positive changes under the New Society. "I am, therefore, designating the period from 1 September 1973 to 28 February 1974 as a "Home-coming Season" for Filipinos and/or their families and descendants who are now residents or citizens of other lands (such parties hereinafter referred to as Overseas Filipinos), pursuant to which program the following instructions are hereby issued: "1. The Department of Tourism, in coordination with all offices in the national, provincial, city, municipal and barrio governments and the private sector, shall prepare a hospitality program for Overseas Filipinos, particularly in connection with the forthcoming Christmas season. "2. The Secretary of Tourism, in his capacity as Chairman of the Civil Aeronautics Board, shall cause the offering of a promotional round-trip airline fare between overseas points and the Philippines, and the offering of a promotional discount in domestic airline fares for Overseas Filipinos. "3. The Department of Finance, in coordination with the Department of Foreign Affairs, shall issue rules and regulations to implement a temporary "Tax Holiday" for Overseas Filipinos in connection with the Homecoming Season; all tax clearance requirements involved in the travel of Overseas Filipinos to and from the Philippines shall be suspended and waived. All offices and agencies of the two Departments, here and abroad, shall be instructed accordingly. "4. The Department of Local Government and Community Development, in coordination with the Office of the President, the Department of Tourism and the Department of Public Works, Transportation and Communications, shall draw up a program of rewarding the provincial, city, municipal and barrio governments which are able to invite the most number of Overseas Filipinos. "5. The Department of Education shall formulate and implement a program to assure that our people shall accord all Overseas Filipinos with the traditional Filipino courtesy and hospitality. "6. All government offices and instrumentalities involved in the documentation, accommodation, facilitation and reception of travelers are instructed to provide maximum support, and cooperation to the Department of Tourism in connection with this program. "7. A National Hospitality Committee for Overseas Filipinos is hereby created with the First Lady, Mrs. Imelda R. Marcos, as Chairman and the Secretary of Tourism as Executive Vice-Chairman. "a. The Committee, in coordination with the Department of Local Government and Community Development and the Department of National Defense, shall organize and supervise the operations of Local Hospitality Committees at the provincial, city, municipal and barrio levels, especially in regard to sharing with Overseas Filipinos a traditional Filipino Christmas. "b. The Committee is empowered and urged to call directly on any and all government departments, bureaus, offices and agencies for support and assistance in the attainment of its objectives and in pursuance of this program. "Done in the City of Manila this 31st day of July in the year of our Lord, nineteen hundred and seventy-three. (SIGNED) "FERDINAND E. MARCOS President Republic of the Philippines" Under Paragraph 3 of the foregoing Letter of Instruction, "all tax clearance requirements involved in the Travel of Overseas Filipinos to and from the Philippines shall be suspended and waived." A certificate of tax clearance is not required in the case of a person entering the Philippines. Such certificate is required to be secured only by a person leaving the Philippines. (Section 343, Tax Code). However, under the foregoing Letter of Instruction, during the period from September 1, 1973 to February 28, 1974, Overseas Filipinos, their families and dependents shall be exempted from tax clearance requirement. In other words, said Overseas Filipinos upon their departure from this country during said period, shall be accorded the same treatment given to tourists or transient visitors staying in the Philippines for a period not exceeding fifty-nine days who upon departure are not required to secure certificates of tax clearance or to execute an affidavit attesting to their exemption from internal revenue taxes. (Sec. 3, Revenue Regulations No. 19-67 dated May 2, 1967) Overseas Filipinos arriving in this country before but leaving the country during the period are still covered by the exemption. Those arriving in this country during the period are also covered by the exemption even if they leave after February 28, 1974. The requirements of Section 344 of the Tax Code shall be dispensed with. Hence, a person, corporation, company, or association engaged in the business of carrying passengers shall issue or validate a passage ticket issued to an Overseas Filipino without requiring the presentation of a certificate of tax clearance. All those concerned are hereby enjoined to be guided accordingly. aisa dc MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5