Airport Tax Payment Requirements for Dual Citizens Exiting the Philippines

Introduction

In the Philippine legal framework, the term "airport tax" often colloquially refers to the Philippine Travel Tax, a mandatory levy imposed on individuals departing the country via air or sea ports. This tax is distinct from terminal fees or other airport charges, which have largely been integrated into airline ticket prices since 2015 for international departures from major Philippine airports like Ninoy Aquino International Airport (NAIA). The Travel Tax serves as a revenue-generating measure to support tourism development and is administered by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), formerly known as the Philippine Tourism Authority.

For dual citizens—individuals holding Philippine citizenship alongside another nationality—the application of this tax raises specific considerations due to their dual status under Philippine law. This article provides a comprehensive examination of the legal requirements, exemptions, payment procedures, and implications for dual citizens exiting the Philippines, drawing from relevant statutes, administrative issuances, and established practices.

Legal Basis

The Philippine Travel Tax is primarily governed by Presidential Decree No. 1183 (PD 1183), issued in 1977 during the martial law era, as amended by subsequent laws and executive orders. PD 1183 mandates the payment of a travel tax by:

Citizens of the Philippines;
Permanent resident aliens; and
Non-immigrant aliens who have resided in the Philippines for more than one year.

The tax rates are set at PHP 1,620 for economy class travel and PHP 2,700 for first class or business class, with adjustments possible through administrative orders from TIEZA in coordination with the Department of Tourism (DOT). These rates have remained stable for several years, though they are subject to periodic review for inflation or policy changes.

Dual citizenship in the Philippines is regulated by Republic Act No. 9225 (RA 9225), the Citizenship Retention and Re-acquisition Act of 2003. Under RA 9225, natural-born Filipinos who acquire foreign citizenship may retain or re-acquire Philippine citizenship upon taking an oath of allegiance. Once dual citizenship is established, these individuals are treated as full Philippine citizens for all intents and purposes within the country's jurisdiction. This includes obligations such as taxation, military service (where applicable), and passport usage.

Importantly, Section 3 of RA 9225 stipulates that dual citizens shall enjoy full civil and political rights and be subject to the same obligations as other Filipino citizens. Consequently, dual citizens are classified as Philippine citizens under PD 1183 and are liable for the Travel Tax when departing the Philippines, unless they qualify for an exemption.

Applicability to Dual Citizens

Dual citizens exiting the Philippines are generally required to pay the Travel Tax if they are departing as Philippine citizens. Philippine immigration law, enforced by the Bureau of Immigration (BI), requires dual citizens to use their Philippine passport for entry and exit to affirm their citizenship status. Failure to do so may result in complications, such as being treated as a foreign national upon re-entry, potentially affecting visa-free privileges or residency rights.

Passport Usage and Tax Liability: When a dual citizen presents a Philippine passport at departure, they are automatically subject to the Travel Tax. If they attempt to exit using only a foreign passport without disclosing their Philippine citizenship, this could violate BI regulations under the Philippine Immigration Act of 1940 (Commonwealth Act No. 613), as amended, which mandates truthful declaration of citizenship. Such non-disclosure may lead to fines, detention, or denial of exit.
Residency Considerations: Dual citizens residing abroad but visiting the Philippines are still liable unless their stay qualifies them under exemption categories. For instance, if a dual citizen has been in the Philippines for less than one year on a temporary visit, they remain classified as a Philippine citizen and must pay the tax, unlike non-immigrant aliens who are exempt if their stay is under one year.
Special Cases: Dual citizens who are minors (under 18 years old) or dependents may have varying liabilities based on accompanying family members. Additionally, those with dual citizenship acquired through birth (jus soli or jus sanguinis) versus re-acquisition under RA 9225 are treated identically in terms of tax obligations.

In practice, airline counters and immigration checkpoints at airports like NAIA, Mactan-Cebu International Airport, and Clark International Airport verify Travel Tax payment before allowing boarding. Non-payment can result in being barred from departure.

Payment Requirements

Payment of the Travel Tax is typically made at designated counters within Philippine airports or seaports prior to check-in. Key requirements include:

Documentation: Dual citizens must present their Philippine passport, valid travel itinerary, and proof of dual citizenship if requested (e.g., Oath of Allegiance certificate under RA 9225). In some cases, a Certificate of Identification from the BI may be required to confirm status.
Modes of Payment: Cash (Philippine Pesos), credit/debit cards, or electronic transfers are accepted at TIEZA counters. Pre-payment options are available through accredited banks or online portals via the TIEZA website, though online payment for dual citizens may require additional verification to ensure exemption status is not erroneously claimed.
Rates and Adjustments: As noted, the standard rate is PHP 1,620 for economy and PHP 2,700 for premium classes. Reduced rates apply to certain categories, such as minors aged 2 to 12 (50% discount) and infants under 2 (exempt). Dual citizens do not receive automatic discounts based on their foreign nationality; reductions are based solely on age, status, or exemptions.
Integration with Terminal Fees: It is crucial to distinguish the Travel Tax from the International Passenger Service Charge (IPSC), commonly known as the terminal fee. The IPSC, set at PHP 550 for international departures, was integrated into airline tickets starting February 1, 2015, per MIAA Administrative Order No. 1, Series of 2014. Dual citizens are not exempt from this fee, but since it is prepaid via the ticket, no separate payment is required at the airport.

Exemptions for Dual Citizens

While dual citizens are generally liable, several exemptions under PD 1183 and related issuances may apply, providing relief in specific circumstances:

Overseas Filipino Workers (OFWs): Dual citizens registered as OFWs with the Overseas Workers Welfare Administration (OWWA) or holding an Overseas Employment Certificate (OEC) from the Department of Migrant Workers (DMW) are exempt. This recognizes their contributions to the economy through remittances.
Balikbayan Privileges: Although the Balikbayan Program under Executive Order No. 408 primarily offers visa-free entry for one year to former Filipinos and their families, dual citizens under RA 9225 may qualify for Travel Tax exemptions if they are returning residents staying less than one year. A Balikbayan stamp in the passport can serve as evidence.
Minors and Dependents: Children under 2 years are fully exempt, while those aged 2 to 12 pay half. Dual citizen minors traveling with exempt parents (e.g., OFWs) may also be exempt.
Diplomats and International Organization Personnel: Dual citizens serving in diplomatic roles or with organizations like the United Nations are exempt upon presentation of appropriate credentials from the Department of Foreign Affairs (DFA).
Other Categories: Exemptions extend to crew members of ships/aircraft, transit passengers (not exceeding 48 hours), and individuals with medical emergencies certified by a physician. Additionally, TIEZA may grant case-by-case exemptions for humanitarian reasons.

To claim an exemption, dual citizens must apply for a Travel Tax Exemption Certificate (TTEC) from TIEZA offices, the DFA, or BI. The application requires supporting documents such as passports, birth certificates, and proof of status (e.g., OWWA membership). Processing time is typically 3-5 working days, and the certificate must be presented at departure.

Procedures for Payment and Exemption

Pre-Departure Preparation: Dual citizens should verify their liability by consulting the TIEZA website or contacting their offices. If eligible, apply for a TTEC in advance.
At the Airport: Proceed to the TIEZA counter after check-in but before immigration. Present required documents and pay if not exempt. Receipts are issued and must be shown at boarding gates.
Online and Advance Options: For convenience, payments can be made via TIEZA's e-payment system, though dual citizens must ensure their citizenship details are accurately entered to avoid discrepancies.
Refunds: If overpaid or erroneously charged, refunds can be claimed within six months from departure by filing a request with TIEZA, supported by receipts and travel documents.

Penalties for Non-Compliance

Non-payment of the Travel Tax is considered a violation under PD 1183, punishable by fines up to PHP 5,000, imprisonment of up to six months, or both, as determined by courts. In practice, airport authorities may simply deny exit until payment is made. For dual citizens, repeated non-compliance could trigger BI investigations into citizenship status, potentially affecting future travel privileges.

Additionally, under the Anti-Money Laundering Act (RA 9160, as amended), evasion of taxes like the Travel Tax may be flagged as suspicious, leading to further scrutiny.

Conclusion

The airport tax payment requirements, embodied in the Philippine Travel Tax, underscore the obligations of dual citizens as full participants in the nation's fiscal system. By adhering to PD 1183, RA 9225, and related regulations, dual citizens can ensure smooth departures while contributing to national development. It is advisable for dual citizens to plan ahead, verify exemptions, and comply with documentation requirements to avoid disruptions. As Philippine laws evolve, staying informed through official channels remains essential for all travelers.