. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
Senate Bill No. 748 
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SENATE 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 (PhpO.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.OO 
(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. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'13 
JUL 1') 
C) ,: "1 
.. 
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SENATE 
Senate Bill No. 7 4 8 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 (PO.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 


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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,