Maximizing Your OFW Exemption: A Guide to Navigating Family Travel Tax
As an Overseas Filipino Worker (OFW), traveling back to the Philippines to spend time with your family is always something to look forward to. However, the process of going through immigration and paying for the Family Travel Tax (FTT) can be quite daunting. Fear not, as we have compiled a guide to help you navigate through the process and maximize your FTT exemption.
What is the Family Travel Tax?
The FTT is a fee imposed by the Philippine government on Filipinos traveling out of the country. This includes OFWs who are traveling with their dependents or immediate family members.
The fee varies depending on the class of travel and the number of family members traveling with the OFW. Currently, the fee for economy class is PHP 550 while the fee for business and first-class travel is PHP 1,620 and PHP 2,700, respectively. This fee can be quite a burden, especially for OFWs who want to spend quality time with their loved ones.
Who is eligible for an exemption?
OFWs are entitled to an exemption from payment of the FTT, provided they meet certain criteria. This exemption is granted by virtue of Republic Act No. 6768 or the “Balikbayan Program,” which seeks to encourage OFWs to come back and visit their families.
To be eligible for exemption, the OFW must be accompanied by their spouse and children, or by a person who is not their spouse but is related to them within the fourth civil degree of consanguinity or affinity. The OFW must also have a valid Overseas Employment Certificate (OEC) and must have stayed abroad for at least a year.
How can I maximize my FTT exemption?
To maximize your FTT exemption, it is important to follow these simple steps:
1. Prepare the necessary documents. Make sure that you have a valid OEC and bring along the birth certificates or marriage certificate of your family members who will be traveling with you.
2. Inform the immigration officer. When you arrive at the airport, inform the immigration officer that you are traveling with your family and that you are an OFW. Present your OEC and the birth certificates or marriage certificate of your family members.
3. Verify the computation of the FTT. If the immigration officer insists on charging you the FTT, verify the computation of the fee. Make sure that the fee being charged is correct and that you are not being charged for family members who are not eligible for exemption.
4. File for a refund. If you have been charged the FTT incorrectly, you can file for a refund at the refund counter at the airport.
Conclusion
Traveling back to the Philippines to spend time with your family should not be hindered by the burden of paying the Family Travel Tax. By following these simple steps, OFWs can maximize their exemption and avoid unnecessary charges. Remember to prepare the necessary documents, inform the immigration officer, verify the computation of the fee, and file for a refund if necessary. With these tips, OFWs can enjoy hassle-free travel with their loved ones.
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