Smart Strategies to Avoid Paying Travel Tax for Your OFW Family
As an Overseas Filipino Worker (OFW), you want to make the most of your hard-earned money. But when you need to bring your family with you to your host country, the cost of travel can be hefty. One of the expenses you need to prepare for is the travel tax. The good news is that there are ways to avoid paying travel tax for your OFW family. In this article, we’ll dive into some smart strategies you can use to save money on travel tax.
What Is Travel Tax?
Travel tax is a fee collected by the Philippine government from individuals leaving the country. It is imposed on all passengers, regardless of age, class of travel, and destination. The current travel tax rate is P1,620 for economy-class passengers and P2,700 for business-class and first-class passengers. The travel tax is valid for one year and can be used for multiple travels.
Exemptions from Travel Tax
There are exemptions from paying the travel tax for certain individuals. If you fall under any of these categories, you can save money on travel tax for your OFW family:
- Infants two years old and below
- Overseas Workers Welfare Administration (OWWA) members
- Philippine government officials on official business
- Dependents of veterans who are traveling for the first time under Republic Act 7432
- Philippine-based employees of multinational companies that are registered under the Philippine Economic Zone Authority (PEZA), Board of Investments (BOI), or other similar agencies
- Philippine Sports Commission (PSC)-accredited athletes and coaches traveling for international sports tournaments or competitions
- Students accepted for enrolment in foreign schools, colleges, or universities
- Those traveling on emergency or humanitarian reasons, such as medical repatriation, distress, or calamity
OWWA Exemption for OFW Family Members
If you are an OWWA member, your immediate family members can avail of the OWWA exemption from travel tax. This means your spouse, children, and parents can travel without paying travel tax. To avail of this exemption, you need to present your OWWA Certificate of Membership and a valid OFW employment contract at the airport. Your dependents must also present their passports and travel tickets. Take note that the OWWA exemption is only applicable to your immediate family members.
PEZA and BOI Exemption for OFW Family Members
If you are a Philippine-based employee of a multinational company registered under PEZA, BOI, or other similar agencies, your family members can avail of the PEZA and BOI exemption from travel tax. To qualify for this exemption, you need to present your company ID or a certification from your employer stating that you are a Philippine-based employee of a registered multinational company. Your dependents must also present their passports and travel tickets. Take note that the PEZA and BOI exemption is only applicable to your spouse and unmarried children below 21 years old.
Summary
Travel tax is a fee imposed on Philippine travelers leaving the country. However, there are exemptions from paying travel tax, such as infants two years old and below, OWWA members, Philippine government officials on official business, dependents of veterans, PEZA and BOI employees and their dependents, accredited athletes and coaches, students, and those traveling on emergency or humanitarian reasons. If you fall under any of these categories, you can save money on travel tax for your OFW family.
Make sure to prepare and present all the necessary documents and certifications to avail of these exemptions. Doing so can help you avoid paying travel tax and make the most of your family’s travel budget. Bon voyage!
