Monday, October 20, 2014

Duty and Tax Free Privileges


Duty and Tax Free Privileges in accordance with the provisions of Section 105 of the Tariff and Customs Code of the Philippines (TCCP), as amended by Executive Order No. 206

Who are entitled to Duty and Tax Free Privileges?

  • Returning Residents
  • Overseas Filipino Worker is a Filipino national who works in a foreign country under an employment contract. Only OFWs who have an uninterrupted stay abroad for more than six (6) months are entitled to duty and tax free privileges.
  • Former Filipinos

What is the extent of duty and tax free privilege of returning Filipinos/Balikbayans?

The extent varies as follows:

  • Returning Resident. Personal effects and household goods used by him abroad for at least six (6) months and the dutiable value of which is not more than Ten Thousand Pesos (Php10,000.00) are exempt from duties and taxes. Any amount in excess of Php10,000.00 is subject to 50% duty to the first Php10,000.00 exemption across the board as provided for under Section 105 (F) of the TCCP.
  • Overseas Filipino Worker (OFW). In addition to the privileges granted to Returning Residents as described above, an OFW may be allowed to bring in, duty and tax free Ten Thousand (Php10,000.00) of USED home appliances, provided:
    • The quantity is limited to one of each kind
    • The privilege has not been enjoyed previously during the calendar year which fact must be declared under oath by the owner
    • The owner’s passport is presented at the port/airport of entry
    • Tany amount in excess of Php10,000.00 will be subject to duty and tax

You may also visit the website http://www.customs.gov.ph of the Philippine Bureau of Customs on the matter.