Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

2882

HOUSE BILL NO.

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Section 1, Article XIII 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$1,000 or Php45,000.00 (Php45=US$1) 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. 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 OFW 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.


In view of the foregoing consideration, the immediate approval
of this bill is
earnestly sought.

JOSEPH VICTOR G. EJERCITO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2882

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

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 assembled:

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 of Exchange
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[.]: PROVIDED, 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 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.


SEC. 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.

SEC. 3. Repealing Clause. - All laws, decrees, executive
orders, proclamations and administrative regulations, or parts thereof
inconsistent herewith are hereby repealed or modified accordingly.

SEC. 4 . Effectivity Clause. - This Act shall take effect

immediately after its publication in at least two national newspapers of
general circulation.

Approved,