The Foreign Service of the Philippines

SUBJECT: Tax exemption privileges of filipinos who are permanent residents abroad and returning to the Philippines for good and former filipino citizens who have acquired citizenships of other countries and are returning to the Philippines to settle permanently

1. Household goods, and personal effects excluding vehicles, watercraft, aircraft and animals of Filipino Nationals who have permanent residence status abroad and coming back to the Philippines to settle for good may be accorded with the privilege of tax and duty exemption pursuant to Section 105(1) of the Tariff and Customs Code, as amended by Executive Order No. 206 dated June 30, 1987, and Section 169(4) of the National Internal Revenue Code, subject however, to the following conditions:

a. that the household goods and personal effects have been used abroad for more than six (6) months and accompanying them In their return or arriving within reasonable time which barring unforeseen and fortuitous events in no case shall exceed sixty (60) days before or after their return to the Philippines;

b. that the household goods and personal effects shall neither be In commercial quantities nor Intended for barter, sale or hire and that the total dutiable value of which shall not exceed ten thousand pesos
(P10,000.00);

c. that the 50% ad valorem duty across the board shall be levied and collected on household goods and personal effects (,except luxury Items) In excess of ten thousand pesos (P10,OOO.00);

d. that they have not previously received the benefit of tax exemption within three hundred sixty five (365) days from or "after the last exemption granted.

2. Household goods and personal effects of former Filipino citizens who have acquired U.S. citizenship and wish to come back to the Philippines to settle permanently may be accorded with the privilege of duty and tax exemption pursuant to Section 105(h) of the tariff and Custom Code, as amended, and Section 169(5) of the National Internal Revenue Code, subject, however, to the following conditions:

a. that the household goods and personal effects are In quantities and of the class suitable to the profession, rank or position of such person;

b. that the household goods and personal effects shall arrive in the Philippines within reasonable time which barring unforeseen circumstances in no case shall exceed ninety (90) days before or after his return In the country;

c. that the household goods and personal effects are brought from his former place of abode;

d. that the privilege of duty and tax exemption was never granted to him before;

e. that change of residence is bona fide and is supported by (he necessary immigration papers evidencing his coming to the Philippines as a settler;

f. the article or articles involved are not vehicles, vessels or aircraft or machineries or other similar articles for the use In manufacture;

g. that the articles belong to him and were In his possession before his departure from his former place of abode and are brought Into the Philippines for his own use and not for barter or sale or hire.

FSC 426-87
03 November 1987

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