Tue. May 11th, 2021

Fees Under the Migrant Worker Acts that OFWs does not NEED to Pay

Much like majority of the Filipino citizens, the government has an agency mandated to protect the rights and welfare of overseas workers and their families for a variety of purposes. As part of this initiative, the Republic Act 10022 or the Migrant Workers Act was enacted to prevent the exploitation of Filipino migrant workers and to ensure fair and decent working conditions.

Of course, this law has had a few other perks for the OFWs. These perks include full protection through social, legal and economic services, equal opportunities and full employment, as well as scholarships and training. Also, before the Migrant Workers Act has been enacted, certain fees are charged to the OFWs.

With this law in place, the following fees shall be waived for OFWs and their families:

  • Travel tax (Php1,620) and airport charges (Php750 for international travel and Php200 for domestic travel)

Section 4 of the Migrant Workers Act provides for migrant workers “shall be exempt from the payment of travel tax and airport fee upon proper showing of the Overseas Employment Certificate (OEA) issued by the Philippine Overseas Employment Agency (POEA).”

  • Documentary Stamp Tax (0.15% or Php1.50 for every Php1,000)

Section 35 of Republic Act No. 8042, says,

“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.”

Also it states that remittances of all OFWs are excluded from payment of a documentary stamp tax (DST) of 0.15% or Php1.50 for every Php1,000 under the amended section 181 of the National Internal Revenue Code.

In the case of OFWs whose remittances are sent via banking system, credited to recipients or recipients’ accounts in the Philippines and withdrawn through an automatic teller machine (ATM), it is the responsibility of the OFW to provide valid proof of entitlement when making arrangements for their remittance transfers.

Continue reading at this link: https://thepinoyofw.com/list-of-fees-that-ofws-do-not-need-to-pay/

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