FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
/ 
S E N A T E  
S. No. 
INTRODUCED BY T H E  HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
Section 1, Article XI11 of the 1987 Philippine Constitution provides that it is 
the duty of the Congress to “give highest priority to the enactment of measures that 
protect and enhance the right of all people to human dignity and reduce social and 
economic inequalities.” It is incumbent upon Congress, therefore, to introduce 
measures that will lessen, if not eliminate, social and economic inequalities in order to 
uplift the lives of the Filipino people. One such way of lessening social and economic 
inequalities is by removing the imposition of the Documentary Stamps Tax (DST) on 
money remittances made by Overseas Filipino Workers to their families here in the 
Philippines. Such DST imposition on money remittances of OFWs is a significant 
financial burden to them considering that the country is already experiencing 
unprecedented highs in food and oil prices. 
Presently, all money transfers from abroad are being subjected to a 0.15% DST 
imposition (Php0.30 for every Php200.00) as supposedly required by Government 
regulations under Section 181 of the 1997 Tax Code and Revenue Regulations (RR) 
No. 13-2004. Thus, for every US$l,OOO or Php45,OOO.OO (Php45=US$l) that an OFW 
may remit monthly to his family, it will mean a corresponding reduction of Php67.50 
because of the DST imposition. To some, the imposition may be miniscule and 
insignificant. But to OFWs and their families, such imposition becomes another 
financial burden as it means further weakening their already diminishing purchasing 
power brought about by the strengthening of the Philippine Peso. When the Peso- 
Dollar exchange rate was Php55=US$l, each US$l,OOO remitted every month brought 
a family Php55,000.00, such that when the exchange rate went down to Php45=US$1, 
that US$l,OOO will bring a family only Php45,OOO.OO. Now, that Php45,OOO.OO will 
have to be further reduced with the DST imposition. 
This bill, therefore, seeks to exempt from DST imposition the money transfers 
to the Philippines made by OFWs who are duly registered with the Philippine 
Overseas Employment Administration. In order to ascertain that the sender possesses 
OFW status, the O W  will be required to present a Philippine Government-issued 
document evidencing such status, which fact shall be indicated in the money transfer 
order in order to exempt the same from DST payment. 


It is significant to note that as of the filing of this bill, market prices of basic 
commodities have increased with chicken already at Phpl20 per kilo, beef brisket at 
Phpl80 per kilo, pork liempo at Phpl70 per kilo, and bangus and tilapia at Php80- 
Php90 per kilo, all of which have increased by an average of PhplO compared to the 
prices in 2007. The continuing rise in oil prices have only fkrther weakened the 
purchasing power of Filipinos brought about by the continuing rise of world crude oil 
and finished petroleum products prices, with Dubai crude already reaching as high as 
US$140 per barrel, which has resulted to increases in the pump prices of petroleum 
products to roughly Php60.46 for unleaded gasoline, Php57.44 for diesel, Php60.02 for 
kerosene, and Php664.72 for an LPG tank. Hence the importance of this bill. 
In view of the foregoing consideration, the immediate approval of this bill is 
earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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8 JUL 24 P6 
Second Regular Session 
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INTRODUCED BY THE HONORABLE MAR R O U S  
AN ACT 
EXEMPTING MONEY TRANSFERS TO THE PHILIPPINES OF OVERSEAS 
FOREIGN WORKERS FROM THE IMPOSITION OF DOCUMENTARY 
STAMP TAX, AMENDING FOR THE PURPOSE SECTION 181 OF 
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE “TAX REFORM 
ACT OF 1997,” AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Section 181 of Republic Act No. 8424, otherwise known as the Tax 
Reform Act of 1997, is hereby amended to read as follows: 
SEC. 181. Stamp Tax Upon Acceptance of Bills ofExchange and Others. - 
Upon any acceptance or payment of any bill of exchange or order for the payment 
of money purporting to be drawn in a foreign country but payable in the 
Philippines, there shall be collected a documentary stamp tax of Thirty centavos 
(P0.30) on each Two hundred pesos (P200), or fractional part thereof, of the face 
value of any such bill of exchange, or order, or the Philippine equivalent to such 
value, if expressed in foreign currency[.]: PROVZDED, HOWEVER, IF THE 
ORDER FOR THE PAYMENT OF MONEY DRAWN IN A FOREIGN 
COUNTRY AND PAYABLE TO THE PHILIPPINES IS MADE BY AN 
OVERSEAS FILIPINO WORKER DULY 
REGISTERED WITH THE 
PHILIPPINE OVERSEAS EMPLOYMENT AGENCY. NO DOCUMENTARY 
STAMP TAX SHALL BE IMPOSED, COLLECTED, AND DEDUCTED FROM 
THE REMITTED AMOUNTED UPON ITS ACCEPTANCE BY THE 


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RECIPIENT IN THE PHILIPPINES: PROVIDED, FURTHER, THAT THE 
FACT THAT THE SENDER OF THE MONEY TRANSFER IS AN OVERSEAS 
FILIPINO WORKER SHALL BE INDICATED IN THE SAID ORDER FOR 
PAYMENT UPON PRESENTATION BY THE OVERSEAS FOREIGN 
WORKER OF ANY PHILIPPINE GOVERNMENT-ISSUED DOCUMENT 
EVIDENCING SUCH FACT. 
SECTION 2. Separability Clause. - Any portion or provision of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
effect in their entirety. 
SECTION 3. Repealing Clause. - All laws, decrees, executive orders, proclamations and 
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SECTION 4. Effectivity Clause. - This Act shall take effect immediately after its 
publication in at least two national newspapers of general circulation. 
Approved, 
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