BENEFITS AND PRIVILEGES OF THE BALIKBAYAN UNDER REPUBLIC ACT NO. 6768 KNOWN AS AN ACT INSTITUITING A BALIKBAYAN PROGRAM, AS AMENDED

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Published — May 30, 2021

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Learn the BENEFITS AND PRIVILEGES OF THE BALIKBAYAN from this article then read also: MAY A FOREIGNER BE DEPORTED EVEN IF WHAT HE VIOLATED WAS A FOREIGN LAW?

• The term “Balikbayan” refers to a Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year, a Filipino overseas worker, or a former Filipino citizen and his family

• A Balikbayan Program was created to attract and encourage overseas Filipinos to come and visit their motherland

• A Balikbayan may enjoy a tax-exempt purchase at all Government-owned and Controlled/Operated Duty-Free Shops

The term “Balikbayan” does not refer to Overseas Filipino Workers only. What is “Balikbayan”?

The law says:

“Balikbayan” refers to a Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year, a Filipino overseas worker, or a former Filipino citizen and his or her family, who had been naturalized in a foreign country and comes or returns to the Philippines.  In line with this, the term “family” shall mean the spouse and the children of the balikbayan who are not balikbayan in their own right traveling with the latter to the Philippines.

The importance of knowing what the term “Balikbayan” means is because a related Balikbayan Program was created under Republic Act No. 6768 or An Act Instituting a Balikbayan Program, as amended. A Balikbayan Program was instituted under the administration of the Department of Tourism to attract and encourage overseas Filipinos to come and visit their motherland. This is in recognition of their contribution to the economy of the country through the foreign exchange inflow and revenues they generate.

What are the benefits and privileges of the Balikbayan?

The law says:

The balikbayan and his or her family shall be entitled to the following benefits and privileges:

1. Tax- exempt maximum purchase in the amount of One Thousand five hundred United States dollars (US$ 1,500.00) or its equivalent in Philippine peso and in other foreign currencies at all government-owned and – controlled/operated duty-free shops subject to the limitations;
2. Special promotional/incentives under the programs established by domestic carriers;
3. Visa-free entry to the Philippines for a period of one (1) year for foreign passport holders, with the exception of restricted nationals;
4. Travel tax exemption;
5. Especially designated reception areas at the authorized ports of entry for the expeditious processing of documents;
6. Accredited transportation facilities that will ensure their safe and convenient trips upon arrival; and
7. Kabuhayan shopping privilege and additional tax-exempt purchase in the maximum amount of Two Thousand United States dollars (US$ 2,000.00) or its equivalent in Philippine peso and other acceptable foreign currencies; exclusive for the purchase of livelihood tools at all government-owned and controlled/operated duty-free shops.

However, take note that paragraphs (a) and (g) above are also subject to the following limitations:

1. Purchases shall be made within fifteen (15) calendar days from the date of arrival: provided, that during the Christmas season, reckoned from November 15 to January 15, the privilege is extended to thirty (30) calendar days from the date of arrival: provided, further, that said privilege shall be availed of on a one-time shopping basis only: provided finally, that in the case of senior citizens and handicapped balikbayan, they shall be allowed to enjoy the privilege within one (1) year from date of arrival in the country;
2. The privilege can be availed of by the balikbayan only once a year;
3. The privilege is non-transferable and purchases shall be made personally by the balikbayan;
4. Only a balikbayan of majority age can enjoy the privilege. However, for the family members who are minors, they shall continue to be entitled to purchase privilege not exceeding the allowable tax-exempt limit for arriving passengers; and
5. In addition to existing limitations on the number of consumables purchased, a balikbayan shall be entitled to buy only one (1) item of every product category of non-consumables whose selling price exceeds Two Hundred United States dollars (US$ 200.00).

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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