Revised Tax Holiday Under Operations "Homecoming Season"

December 2, 1975 REVENUE MEMORANDUM ORDER NO. 63-75 SUBJECT : Revised Tax Holiday Under Operations "HOMECOMING SEASON" TO : All Internal Revenue Officers and Others Concerned In compliance with Letter of Instructions No. 105, dated July 31, 1973, the following procedure on the participation of the Bureau of Internal Revenue in Operations "Homecoming Season" is hereby promulgated for the guidance and compliance of all concerned. Letter of Instruction No. 105 insofar as it affects the Bureau of Internal Revenue is quoted hereunder: "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." In the above-cited paragraph of Letter of Instructions No. 105, the participation of the Bureau of Internal Revenue consists of two parts: 1. Temporary tax holiday for Overseas Filipinos. 2. Suspension of tax clearance requirements involving the travel of Overseas Filipinos to and from the Philippines. The period covered is from September 1, 1973 to February 29, 1976. I. TAX HOLIDAY Under the tax holiday, all internal revenue officers in the Philippines and revenue attaches assigned abroad are hereby enjoined to comply with the following guidelines with respect to Overseas Filipinos coming to the Philippines under Operations "Homecoming Season": 1. Do not require them to file returns. 2. Do not require them to pay nor collect any taxes due from them during said period. 3. Do not investigate the homecoming Filipinos during the period of Operations "Homecoming Season". 4. Give maximum assistance to facilitate their trip to the Philippines for the Christmas holidays. Such assistance shall include among others, the waiving of the requirement for Filipinos to prove that they have filed the required returns before a passport is renewed. 5. All the above privileges and benefits granted under the Tax Holiday program apply only to all returning "VIP" Filipinos during the period of their visit in the Philippines under the operations "Homecoming Season" . The Tax Holiday program does not however, exempt them from the obligation to file their annual income tax return and/or pay the tax (if taxable) in the nearest Philippine Consulate or Embassy where they reside . II. TAX CLEARANCE 1. During the period declared as Operations "Homecoming Season", Section 343 and 344 of the National Internal Revenue Code, as amended, providing for the issuance of tax clearance certificates for persons departing from the Philippines are hereby suspended. 2. In accordance with the procedure prepared by the Department of Tourism, all Filipinos coming to the Philippines under the operations will be given "VIP" cards upon arrival from abroad to any port or airport in the Philippines. Possession of the "VIP" card shall entitle the holder thereof to the privileges of the suspension of all tax clearance requirements and the showing thereof to the airline company or travel agency is all that will be required to enable the departing passenger to leave without securing a tax clearance certificate. 3. For statistical and checking purposes, airline companies are hereby required to submit with the copy of the manifest forwarded to the Bureau of Internal Revenue, a listing of all Filipinos who departed with "VIP" cards. All those concerned are enjoined to comply strictly with the provisions of this memorandum order. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN: 1456-040-3