The Senate has recently approved a proposed law that will allow overseas Filipino workers (OFWs) returning to the Philippines for good to bring home up to P350,000 worth of personal and household items tax-free.
Senate Pro-Tempore Ralph Recto said OFWs who want to bring home the fruits of their overseas labor will benefit from this law.
Items covered by this proposed law include used household appliances, jewelry, precious stones, and other goods of luxury, personal and household effects including wearing apparel, goods of personal adornment except luxury items, toilet goods, instruments related to one’s profession and analogous personal or household effects, excluding vehicles, watercraft, aircraft and animals.
Recto said the bicam can still raise the amount. If there are used items in the balikbayan box, the assessed values would be lower.
Only Filipinos who have worked abroad for 10 years may avail the P350,000 tax exemption. OFWs who have lived for at least five years but not more than 10 years have a lower tax-free exemption of P250,000.
The Senate approved the CMTA on its third and final reading on January 18. A bicameral conference committee is now finalizing the version which will be sent back to each legislative chamber for ratification.
Under current regulations, an OFW home for good can only be tax-exempt if their balikbayan boxes contain no more than P10,000 worth of personal and household goods.