Just like the rest of the Filipino citizens, the government has an agency that is mandated to guard the rights and welfare of overseas workers and their families for various purposes. As part of this initiative, the Republic Act 10022 or Migrant Workers Act was enacted to prevent the exploitation of migrant Filipino workers and ensure fair and decent employment conditions.
Naturally, this law came with a few other benefits for OFWs. These benefits include full protection via social, legal, and economic services, full employment equality and opportunities, as well as scholarships and trainings. Also, before the Migrant Workers Act was enacted, certain fees are charged to OFWs.
With this law in place, the following fees are waived for OFWs and their families:
- Travel tax (Php1,620), and airport fee (Php750 for international travel and Php200 for domestic travel)
According to Section 4 of the Migrant Workers Act, 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.”
It also states that remittances of all OFWs, are exempted from the payment of documentary stamp tax (DST) amounting to 0.15% or Php1.50 for every Php1,000 under the amended Section 181 of the National Internal Revenue Code.
In case of OFWs whose remittances sent through the banking system, credited to beneficiaries or recipient’s account in the Philippines and withdrawn through an automatic teller machine (ATM), it shall be the responsibility of the OFW to show the valid proof of entitlement when making arrangement that for his/her remittance transfers.
A proof of entitlement that is no longer valid shall not entitle an OFW to DST payment exemption.
- Other fees
On top of these, all fees charged by any government agency, including those related to recruitment, placement, and assistance will not increase, and the administrative fees will not be covered by the OFW.
This will require not only original but also a duplicate or a certified true copy of the OEC or valid OWWA Membership Certificate of the OFW beneficiary or recipient, and valid proof of entitlement referred secured by the OFW from the POEA or OWWA, which shall be held and used by the beneficiary in availing of the DST exemption.