The OFW Travel Tax Certificate of Exemption (TCE) in the Philippines
A comprehensive legal guide for practitioners, recruiters, and Overseas Filipino Workers
1. Background: Why the Travel Tax Exists
The Philippine travel tax is a levy imposed on citizens, resident aliens, and certain non-resident travelers who depart the country by air. It was created in Presidential Decree (PD) 1183 (16 December 1977) “to provide adequate funds for tourism‐related infrastructure and other national development projects.” Collection was originally handled by the Philippine Tourism Authority (PTA) and, since the Tourism Act of 2009 (Republic Act 9593), by its successor-agency TIEZA (Tourism Infrastructure and Enterprise Zone Authority).
2. Statutory and Regulatory Basis of the OFW Exemption
| Instrument | Key Provision(s) Relevant to OFWs |
|---|---|
| PD 1183, as amended | §3(j) empowers the President to exempt specified classes of travelers. |
| PD 1205 / PD 2018 | Introduced exemptions for contract workers and seafarers. |
| Republic Act 8042 (“Migrant Workers and Overseas Filipinos Act,” 1995) as amended by RA 10022 (2010) | §35 directs all agencies to simplify procedures and exempt documented OFWs from travel tax, airport fee and documentary stamp tax. |
| Executive Order 46 (11 Sept 2011) | Transfers PTA travel-tax functions to TIEZA. |
| TIEZA Memorandum Circular 2017-04 | Consolidated guidelines on Certificates of Exemption/Reduced Travel Tax (superseding PTA Memo Circ. 2004-01). |
| Republic Act 11641 (2021) | Creates the Department of Migrant Workers (DMW), absorbing POEA and issuing Overseas Employment Certificates (OECs) that serve as primary proof of OFW status. |
Bottom line: An OEC/e-Receipt or an OEC Exemption Reference Number (ERN) is the statutory documentary proof of OFW status and therefore of travel-tax exemption.
3. Who Qualifies for a Travel Tax Certificate of Exemption
| Category | Entitlement | Documentary Proof |
|---|---|---|
| Documented land-based OFWs | 100 % exemption | Valid passport + OEC/ERN + confirmed ticket |
| Seafarers (including cruise-ship crew) | 100 % exemption | Seaman’s Book + validated POEA-GAD Form/Contract + ticket |
| Dependent spouse of an OFW | 50 % reduced rate (P 810 economy / P 1 350 first-class) | Marriage cert. + spouse’s OEC + ticket |
| Unmarried dependent child < 21 yrs | 50 % reduced rate | Birth cert. + parent’s OEC + ticket |
| Infant (< 2 yrs, any traveler) | Fixed infant rate (P 300)—not covered by TCE |
4. Distinguishing Features of the TCE
| Feature | Details |
|---|---|
| Issuing authority | TIEZA Travel Tax Services Department |
| Form number / title | “Certificate of Travel-Tax Exemption” (or “Certificate of Reduced Travel Tax” for dependents) |
| Security elements | Serial number, QR code, watermark, digital signature |
| Validity period | One (1) year or until the flight shown on the certificate—single use per passenger name record (PNR) |
| Transferability | Strictly non-transferable; name must match passport and ticket |
| Processing fee | ₱ 200 (online or counter); waived for seafarers processed in-bulk by licensed manning agencies |
5. When Is a TCE Needed?
- Airline system cannot automatically validate the OEC/ERN.
- OFW paid travel tax in error and seeks a refund.
- Dependent spouse/child is claiming the 50 % rate.
- Ticket purchased abroad or via a global distribution system (GDS) that does not interface with TIEZA.
- Group bookings or charter flights where the carrier requires hard proof of exemptions before uplift.
Tip: For straightforward solo bookings on Philippine carriers that directly query the DMW database, the OEC alone often suffices and no TCE is printed.
6. How to Secure the Certificate
A. Online Application (preferred since 2023)
- Create an account on the TIEZA Travel Tax Services Online Portal (https://traveltaxservices.tieza.gov.ph).
- Select “Apply for Certificate of Exemption.”
- Upload scans/photographs of required documents (PDF or JPEG, ≤ 3 MB each).
- Pay the ₱ 200 processing fee via PayMaya, GCash, credit/debit card or LandBank Link.Biz.
- Download the TCE in PDF format (average issuance time: 10–15 minutes).
B. Walk-in (NAIA, Clark, Cebu, Davao)
- Fill out Form TIEZA-TTS-03 in duplicate.
- Present original documents + one photocopy.
- Pay ₱ 200 in cash; certificate released over the counter within the hour.
C. Through Airline Ticket Offices
Some carriers (e.g., PAL, Cebu Pacific) are accredited as collecting agents and can process the TCE concurrently with ticket purchase, charging the ₱ 200 fee.
7. Refund of Travel Tax Paid in Error
| Item | Rule |
|---|---|
| Filing period | Within two (2) years from date of travel-tax payment. |
| Where to file | TIEZA main office (Pasay) or any satellite counter; online filing available since 2024. |
| Documents | Paid travel-tax receipt, boarding pass/e-ticket, passport, OEC/ERN, duly accomplished Form TIEZA-TTS-04. |
| Service fee | ₱ 200 (deducted from refund). |
| Mode of refund | Credit-card reversal, PESONet bank credit, or cheque. |
| Processing time | 90 days statutory maximum; ~30 days average for complete applications. |
8. Practical Issues and FAQ
| Question | Answer |
|---|---|
| Is the TCE equivalent to the terminal fee exemption? | No. Terminal fees (Passenger Service Charges) are separate; only NAIA terminals waive them for documented OFWs via DMW-Airline system matching. |
| What if the flight is re-booked? | Obtain a revalidated TCE (no extra fee) or apply for a new one if the ticket number changes. |
| Are dual-citizen Balikbayans exempt? | Only if they also hold a valid OEC as contract workers. A Philippine passport alone does not confer exemption. |
| Does the exemption apply to connecting legs outside PH? | The travel tax attaches only to tickets whose 1st segment departs Philippine soil. Down-line segments are irrelevant. |
| Penalties for misuse? | Falsification or fraudulent presentation is estafa/forgery under Arts. 171–172, Revised Penal Code; TIEZA may also impose an administrative fine up to ₱ 50 000 and permanently blacklist the passenger. |
9. Schedule of Travel-Tax Rates (2025)
| Class of Passenger | Economy Class | First/Business Class |
|---|---|---|
| Regular Adult | ₱ 1 620 | ₱ 2 700 |
| Dependent Spouse / Child of OFW | ₱ 810 | ₱ 1 350 |
| Infant (< 2 yrs) | ₱ 300 | ₱ 300 |
| Philippine Foreign-Service Personnel & UN Diplomats | Exempt | Exempt |
| OFW (land-based or sea-based) | Exempt | Exempt |
(Rates include the PHP-20 stamp duty under RA 1125 and remain unchanged since 2019.)
10. Future Outlook
- Full API integration of the DMW e-Gov Super App with airline reservation systems, aimed at eliminating the need for a standalone TCE by 2026.
- Bills in the 19th Congress (e.g., House Bill 6359) seeking to abolish or drastically lower the travel tax, citing ASEAN competitiveness.
- Expansion of the Overseas Filipino Card under RA 11959 (“OFW Pass”) that will function as a digital travel-tax exemption credential.
11. Key Takeaways
- The Travel Tax Certificate of Exemption is the gold-standard documentary proof that an OFW (or qualified dependent) need not pay the Philippine travel tax.
- It is grounded in multiple legal instruments—primarily PD 1183, RA 8042/10022, and TIEZA’s implementing circulars.
- Obtaining the certificate is quick and inexpensive (₱ 200; online in minutes) but accuracy of personal and flight data is critical.
- Failure to present either a valid OEC/ERN or a TCE at the point of sale or check-in usually results in automatic assessment of the full travel tax, collectible by the airline.
- Refunds are possible but take time; preventing erroneous collection is vastly preferable.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. For case-specific queries, consult TIEZA or a licensed Philippine lawyer specializing in labor-migration law.