Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Second Regular Session

House Bill No. 6138

Introduced by Representatives Pantaleon D. Alvarez, Rodolfo C. Farinas,
Dakila Carlo E. Cua and Lucy T. Gomez

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EXPLANATORY NOTE

The contribution of Overseas Filipino Workers (OFWs) to the country’s revenue
raising effort and economic standing, in general, is undeniably significant, with
their total yearly remittances amounting to billions of pesos. Indeed, as they
have always been acknowledged, the OFWs are Philippine society’s modern day
heroes. And, rightfully so, government has as much as possible conferred upon
them privileges and protection in various matters.

This notwithstanding, there is still some void to fill as the so-called solo parent
OFWs face some sort of inequity in the field of taxation. Specifically, children of
these single parent modern day heroes are currently denied exemption from
travel tax, an incentive to which broods of their married counterparts are
entitled as provided for under Republic Act No. 6768, as amended, otherwise
known as “AN ACT INSTITUTING A BALIKBAYAN PROGRAM”, which
incidentally considers OFWs as “balikbayans”. Considering that solo parent
OFWs are as equally worthy of government recognition as those married
Filipino migrant workers, the single valid criterion being their honest and hard
tgil in foreign lands, this unfortunate circumstance must be remedied. There
should be undivided and impartial recognition of the laudable and selfless hard
work gf all OFWs.


It is worth noting, however, that Republic Act No. 8042, as amended, otherwise
known as the “MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995”
grants travel tax exemption solely to OFWs and not to their dependents, which
is contrary to the provisions of RA No. 6768.

This legislative proposal seeks to address the abovementioned disproportion in
tax treatment and apparent inconsistency between the laws involved by
categorically providing travel tax exemption to children of both married and
solo parent OFWs, amending Republic Act No. 8042, as amended.

Accordingly, passage of the measure is earnestly sought.

Representative P: ‘on D. Alvarez
1st District, Davao del jlorte

/ —_
Representatfve Rodolfo C. Farifias
1s District, Ilocos Norte

Rep: ‘ative Dakila Carlo E. Cua
Long District, Quirino

cy T. Gomez



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Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

Seventeenth Congress
Second Regular Session

House Bill No. 6138

Introduced by Representatives Pantaleon D. Alvarez, Rodolfo C. Farifias,
Dakila Carlo E. Cua and Lucy T. Gomez

AN ACT GRANTING TRAVEL TAX EXEMPTION TO DEPENDENTS OF
MARRIED OR SOLO PARENT OVERSEAS FILIPINO WORKERS, AMENDING
FOR THE PURPOSE SECTIONS 3 AND 35 OF REPUBLIC ACT NO. 8042,
OTHERWISE KNOWN AS THE “MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995”, AS AMENDED BY REPUBLIC ACT NO. 10022

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION 1. Section 3 of Republic Act No. 8042, as amended, is hereby further
amended to read as follows:
“Section 3. Definitions. - For purposes of this Act:
(a) xxx;
(B)/SOLO PARENT’ AS DEFINED UNDER SECTION 3 (A) OF
REPUBLIC ACT NO. 8972, OTHERWISE KNOWN AS THE “SOLO
PARENTS’ WELFARE ACT OF 2000”;
(C) ‘DEPENDENTS’ REFERS TO THE FOLLOWING:

(1) SPOUSE AND CHILDREN OF THE MARRIED OVERSEAS
FILIPINO WORKER; AND


Ce auEeune

(2) CHILDREN OF THE SOLO PARENT OVERSEAS FILIPINO

WORKER.
[(b)] (D) xxx
((c)] (E) xxx”

SEC. 2. Section 35 of Republic Act No. 8042, as amended, is hereby further
amended to read as follows:

“Sec. 35. Exemption from Travel Tax, Documentary Stamp Tax and
Airport Fee. - All laws to the contrary notwithstanding, the migrant worker
AND HIS OR HER DEPENDENTS shall be exempt from the payment of
travel tax and airport fee upon proper showing of entitlement by the POEA.

The remittances of all overseas Filipino workers, upon showing of the same
proof of entitlement by the overseas Filipino worker’s beneficiary or
recipient, shall be exempt from the payment of documentary stamp tax.”

SEC. 3. Implementing Rules and Regulations. ~ Within six (6) months from the
effectivity of this Act, the Secretary of Finance shall, upon the recommendation
of the Commissioner of Internal Revenue, promulgate the necessary rules and
regulations for its effective implementation.

SEC. 4. Separability Clause. - If any provision of this Act is subsequently
declared invalid or unconstitutional, the other provisions hereof which are not
affected thereby shall remain in full force and effect.

SEC. 5. Repealing Clause. — Republic Act No. 6768, as amended, otherwise
known as “AN ACT INSTITUTING A BALIKBAYAN PROGRAM” is hereby
amended or modified accordingly.

All other laws, acts, presidential decrees, executive orders, issuances,
presidential proclamations, rules and regulations or parts thereof, which are
contrary to or inconsistent with any provision of this Act are hereby repealed,
amended or modified accordingly.

SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,