Guidelines in the processing of application and issuance of certification for travel tax exemption purposes

April 14, 1994 REVENUE MEMORANDUM ORDER NO. 31-94 SUBJECT : Guidelines in the Processing of Application and Issuance of Certification for Travel Tax Exemption Purposes TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES 1. To document the internal procedures for processing applications of Balikbayans for travel tax exemption (as provided for in Presidential Decree No. 1183, as amended by Executive Order No. 283) and for the issuance of the necessary certification. cd 2. To monitor and evaluate the quality of services provided by the BIR to the Balikbayans availing of the exemption privilege. II. RESPONSIBLE OFFICE The Tax Assistance Unit of Revenue Region No. 6 (Manila) is hereby tasked with implementing the function of processing of applications of Balikbayans for travel tax exemption purposes and issuance of the necessary certification. III. GUIDELINES 1. The following are the general requirements for application of travel tax exemption: cd a) The Balikbayan must be present when applying for travel tax exemption if he/she is 18 years of age and above. A representative is only allowed if the applicant is 17 years old and below; 60 years old and above; or for meritorious reasons, in all other cases. b) The filing of the application for travel tax exemption should not exceed one year from the date of arrival in the Philippines (Section 6, Rule No. 11, Department of Finance). 2. A Balikbayan who meets the above general requirements shall secure the application/affidavit form (See Annex A) from the Tax Assistance Unit of Revenue Region No. 6. The application/affidavit form should be duly initialed by a designated officer. 3. The Balikbayan shall accomplish the application/affidavit form and submit this together with the following requirements for notation and/or verification by a designated officer of the Tax Assistance Unit: a) Philippines passport; b) Proof of permanent residence abroad, such as a Certification of Residence issued by the Philippine Embassy/Consulate in the country which do not grant permanent resident status or appropriate entries in the passport; c) If employed, proof of income tax payment, such as the original and/or xerox copy of the Philippine income tax return and official receipt of payment of tax due, if any, for the most current year. d) If the Balikbayan claims to be a dependent and is 18 years old or above but below 60 years of age, a Certification of Unemployment/No Income issued by the Philippine Embassy/Consulate in the country of residence or from an appropriate officer in the country wherein the Philippines does not maintain an Embassy or Consular Office. 4. The Balikbayan shall be advised to file a tax return and pay the necessary income tax if the requirement in no. 2 (c) above is not available. 5. The designated officer or any other designated signatory in the Tax Assistance Unit shall sign the certification (See Annex B) upon verification of the submitted documents. acd 6. The designated officer shall maintain a record which contains the certification number, the taxpayer's name, amount of income tax paid, if any and where paid. If no payment was made, the reason for non-payment shall be indicated in the appropriate column. This record shall be the basis for verification of the filing of the income tax return of the concerned Balikbayan in case the Department of Tourism inquires or if the same Balikbayan again applies for travel tax exemption within the same year. 7. After recording the above data, the designated officer shall require the Balikbayan to pay the documentary stamp tax and the certification fee. Upon payment of the fees, the numbered certification shall be issued to the Balikbayan. The numbering system of the certification shall be on a chronological basis, preceded by the year when such certification is issued. 8. Upon release of the certification, the Balikbayan shall be requested to accomplish the survey form (See Annex C) and drop the same in the dropbox provided for this purpose. 9. On a weekly basis, the results of the survey shall be tabulated and a report submitted by a responsible official in the Tax Assistance Unit to the Regional Director of Revenue Region No. 6 not later than Tuesday following each week. The results of the survey shall be one of the basis for evaluating the efficiency and the effectiveness of the Tax Assistance Unit. cd IV. Effectivity This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A of RMO # 31-94 Republic of the Philippines Quezon City A F F I D A V I T I, ____________________________, _______________ years old, single/married/widow/widower, Filipino and a resident of : (Abroad) _____________________________________________ No. Street State Country after having been sworn to in accordance with law, hereby depose and say: That I am a holder of Philippine Passport No. _________________ issued on ________________ by the ____________________ with expiry date on __________________. That I am a permanent resident of _______________________ with Resident Alien No. __________________since _____________________. That Affiant if : (accomplish either A or B) A. TAX FILER: B. NON-TAX FILER: 1. Date of filing Phil. Income 1. Reason for not filing Tax Return ____________ income tax return: 2. Place of Filing ____________ ________________ 3. O.R. No. ____________ ________________ 4. Amount Paid ____________ ________________ 5. Taxable Year ____________ 2. Means of support: ________________ ________________ ________________ ________________ That through this Affidavit, I am authorizing the Bureau of Internal Revenue to confirm my tax declaration, if any, from the concern tax authorities of the country where I am a resident of. That I am executing this Affidavit on my own free will and hereby declare under penalties of perjury that the statement made herein are true and correct to the best of my knowledge and belief. ____________________ Affiant SUBSCRIBED AND SWORN to before me this __ day of ______ 19 _______ at the Bureau of Internal Revenue, Quezon City, Philippines. _____________________ Revenue Officer ANNEX B of RMO # 31-94 REPUBLIKA NG PILIPINAS KAGAWARAN NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS Lungsod ng Quezon NO. _______________________ ______________________ Date C E R T I F I C A T I O N The Chief Travel Tax Division M a n i l a This is to certify that ____________________________________ a Filipino, resident of (Abroad) __________________________________ __________________________________________________________ with Philippine Passport No. _____________________ and Resident Alien No. _________________. _______ has filed an income tax return ________ is exempt from filing an income tax return for the taxable year ______________. This Certification is issued upon request of the taxpayer for travel tax exemption purposes. Done this __________ of ____________, 1994 in Quezon City, Philippines. FOR THE COMMISSIONER OF INTERNAL REVENUE _____________________ Doc. Stamp: P3.00 (2) Cert. Fee: P2.00 O.R. No. Date Issued __________ NOTE: ANY ERASURE OR ALTERATION WILL INVALIDATE THIS CERTIFICATION AND UNAUTHORIZED REPRODUCTION OF THIS FORM IS PROHIBITED. THIS CERTIFICATE IS VALID FOR ONE TRAVEL ONLY. ANNEX C of RMO # 31-94 Dear Balikbayan: Petsa: _________ Nais po naming hingin ang inyong kuro-kuro ukol sa mga katanungang nakatala sa ibaba. Ang inyong tapat na pagsagot ay makakatulong sa pagpapahusay ng aming paglilingkod sa inyo: 1. Alam ba ninyo ang mga dokumentong hinihingi namin? ____ Oo ____ Hindi 2. Sa palagay ba ninyo ay kinakailangan ang mga papeles na nabanggit? ____ Oo ____ Hindi 3. Kayo po ba ay nasiyahan sa paglilingkod ng aming mga empleyado? ____Oo ____ Hindi 4. Ngayon lang po ba kayo kumuha ng "Tax Clearance"? ____ Oo ____ Hindi 5. Gaano po katagal kayo inabot sa pagkuha ng "Tax Clearance"? ____ Minuto ___ Oras 6. Mga ibang pahayag/mungkahi: __________________________________________ __________________________________________ __________________________________________ Kung may iba pa po kayong nais ilahad na dapat kong pag-ukulan ng pansin, maari po ninyo akong tawagan sa Numero ___________ o di kaya puntahan ninyo ako sa aking opisina, _____________________________. Maraming salamat po.