Beruflich Dokumente
Kultur Dokumente
FOR
FILIPINOS OVERSEAS
3rd Edition
CONTENTS AT A GLANCE
Foreword
Philippines 2000
Beginnings of Philippines 2000 Value/Belief System of Philippines 2000
Components of Philippines 2000 Strategy Filipinos Overseas and
Philippines 2000
The Philippine Economy at a Glance
Filipinos Overseas
Philippine Congress and the Protection of Filipinos Overseas
Migrant Workers and Overseas Filipinos Act of 1995 Inter-Country
Adoption Act
Land Ownership by Filipinos Overseas
The Filipina Overseas and Philippines 2000
Off to Another Country
Passport Application Travel Tax
Assistance to Filipinos Overseas
Assistance-to-Nationals Task Force
The Filipinos Overseas as Citizens
Tax Obligations of Filipinos Overseas Remittances from Filipinos
Overseas
Donations from Filipinos Overseas LINKAPIL
Exports thru Expats
Filipinos Overseas as Entrepreneurs
Doing Business in the Philippines: A Checklist
Incentives under the Omnibus Investment Act of 1987
Investment Priorities Plan for 1995 Foreign Investments Act of 1991
Special Investors Resident Visa
Immigration Policies
Non-quota Immigrant Student Visa Special Study Permit
Waiver of Exclusion Ground
Programs for Returning Filipino Migrants
Lakbay-Aral Bring Home a Friend Balikbayan Program
Balikbayan Plus Card Kabuhayan 2000: Sa Pagbabalik ng Pinoy
Retirement Program Pag-IBIG Fund for Filipino Overseas Workers
(FILOW)
Medicare
Acknowledgments
FOREWORD
The second edition of the Handbook for Filipinos Overseas was released in September 1993. It
was also the year President Fidel V. Ramos formally launched the Philippines 2000 after months
of nationwide and multi-sectoral consultation aimed at drafting the blueprint of the country's
sustainable development agenda. The Philippines 2000 banner was eventually unfurled through a
development strategy under the Medium Term Philippine Development Plan [MTPDP] for 1993-
1998.
After three years, President Ramos opened the curtains of the 10th Congress with a State of the
Nation Address on July 24, 1995. Three of the six major goals the administration have set its sight
on for the next three years will directly impact upon the resolute effort of its people, including
Filipinos overseas, to rise above the present challenges and acquire a new role as nation-builders.
These goals are: to adapt to a competitive world economy, to prevent the perpetuation of poverty,
and to acquire economic capability and self-reliance. Since the country's relations with other
nations and the role of overseas Filipinos would have a significant effect on these goals, the
instituted pillars of the country's foreign policy have been further defined and reinforced to cover
three priority areas: political security, economic diplomacy, and protection of Filipinos overseas.
Filipinos overseas are indeed becoming more involved with the national recovery and
development efforts. The National Economic Development Authority [NEDA] has recognized the
need to look to overseas Filipinos in the consultation process for the formulation of the Long
Philippine Term Development Plan. The involvement is critical in the light of the policy invoked
by the President and the Philippine Congress in effecting measures that would facilitate the re-
integration of overseas Filipinos within the mainstream of national development. The Filipino
migrants and their families are also expected to continue to identify with the country and shall
therefore be expected to promote the country's welfare in their area of influence.
By the 21st Century, the Filipino is envisioned to be: mobile, flexible, entrepreneurial,
nationalistic, and tolerant.
It is along these thrusts that the Third Edition of the Handbook for Overseas Filipinos is being
crafted. This publication is intended to provide you with information on a wide range of policies,
programs, and activities of the Philippine government, which may affect you, particularly with
respect to your various concerns and interest in the country. It is hoped that awareness of these
issues would create better understanding and appreciation of existing policies, and foster greater
linkages between you and those in the homeland.
Sana ay hindi natin malimutan ang kagandahang-asal na likas sa ating pagiging Pilipino.
Ang pagka-MakaDiyos
Ang pagka-Makatao
Gumagalang at nanalig sa kapwa bilang isang kapatid na may pandama, may lakas
at ganda ng loob, may karapatan at hangarin para sa buhay na magana, maayos,
mapayapa, at maginhawa.
Ang pagka-Makakalikasan
Ang pagka-Makabansa
PHILIPPINES 2000
Philippines 2000 is the Filipino people's vision of development by the year 2000. It is at the same
time, a strategy and a movement.
As a MOVEMENT, the Philippines 2000 is a call for unity among Filipinos, a call for strategic
alliance among key development actors- the government, business/private sector, labor, and
NGOs/POs.
Because the phrase "Philippines 2000" has immediately caught public attention, it can also be
considered a "battlecry" to rally all Filipinos to work together towards attaining the country's
vision of development.
Prior to its formal launching, Philippines 2000, as a movement, had started to gather momentum
in the form of multi-sectoral consultations that sought to address the problems facing the country
today, reinforcing the need for a rallying point and a concrete action program to prepare the
Philippines for entry into the 21st century. The people behind this movement are those from the
government, business/private sector, labor and NGOs/POs forming a strategic alliance under the
active leadership of President Fidel V. Ramos.
On January 21, 1993, President Ramos formally launched Philippines 2000 at the Department of
Science and Technology Multi-Sectoral Workshop. Its importance as a key government thrust was
reaffirmed by the President during the 7th EDSA Anniversary celebration last February 25, 1993
with the launching of the Medium-Term Philippine Development Plan for 1993-1998 which the
President dubbed as the "roadmap" to attain the vision of Philippines 2000.
The year 2000 was chosen because it represents not just the turn of the century, but more
significantly, the entry of the Philippines and the whole world into a new millennium. This
transition connotes change for the better which should inspire commitment and sustained action
from everyone.
Philippines 2000 is based on the vision that sees Filipinos as God-centered, people-empowered
national community, where ordinary Filipinos take control of every aspect of their lives -- their
livelihood, their politics, and their culture. It draws from the essence of the Filipino personality
which views development as both material and moral and which basically affirms and values life
(buhay), and human relationships (kapwa, pakikisama, and pagbubuklod).
As a strategy, Philippines 2000 is basically made up of two parts. The first is the Medium-Term
Philippine Development Plan (1993-1998) which sets down social and economic development
policies, programs and strategies that should enable the country to realize its goal of an improved
quality of life for all Filipinos by the 21st century. Guided by the twin strategies of People
Empowerment and Global Excellence, the Plan also serves as the road map to attain the vision of
Philippines 2000.
The second part addresses the conditions that must be present if the socio-economic
prescriptions are to be successfully realized. These conditions are:
President Fidel V. Ramos firmly believes that there is a basic ingredient missing in our past
development efforts. He believes that this missing ingredient has something to do with our need
to agree among ourselves, to work as a team, to set aside our differences, and to help one another
attain peace and prosperity as a nation. Obviously, this dimension is concerned with culture, with
morality, with principles, and with spirituality. Hence, moral regeneration (which should lead us
to national unity) logically proceeds the social and economic development prescriptions in any
development plan.
As a movement, the Philippines 2000 is not characterized by any fixed and permanent
organizational structure. Being simply a movement, it consist of groups and individuals who
believe in the core values and objectives of Philippines 2000 and at the same time contribute to
their attainment.
Filipinos, wherever they are, who believe in their hearts that the time to act is now ... that they,
too, can contribute, no matter how small or significant ... can respond to the challenge of
Philippines 2000. They can help propagate the vision of Philippines 2000 by enjoining their
families, friends, neighbours to join this movement by organizing their efforts towards a common
vision, so that together, all Filipinos, no matter where they are, can actively take part in their
country's pursuit of the Medium-Term Philippine Development Plan and the vision of Philippines
2000.
For the first time in more than a decade, business activity has picked up considerably, thereby
sustaining the recovery which started to pick up in 1993.
The recovery of the business sector in 1993 was indicated by the improved earning performance of
Philippine-based corporations, brisker retail sales on the domestic market, a sharper increase in
foreign trade (despite imports still lagging behind exports), and new job openings which have
improved the prospects of the domestic job market.
The greater inflow of foreign investments in 1993 fuelled the turnaround. This has encouraged a
good deal of indigenous capital and contributed to a substantial amount of long-term fixed
investments in new basic industries and in the production of consumer goods and services.
Overview
Gross national product (GNP) for the first quarter of 1995 grew by 5.2%, better by 10%
than last year's 4.72%, indicating that the economic growth target of 6% to 6.5% for this
year is achievable.
Improvement in all major economic sectors translated in 4.8% growth in gross domestic
product (GDP), versus the 3.6% recorded in the first quarter of 1994.
The industry sector topped the economic scoresheet with a 7.2% rise, while
manufacturing rose by 6.6%.
At $3.7B, exports for the first quarter of 1995 were 26.4% higher than last year's $2.9B. In
March alone, exports rose 22.4% to $1.3B.
Export earnings from the country's export processing zone (EPZs) reached $74.3M in the
first four months of 1995, a slight increase of 6% from last year's parallel period.
The Bangko Sentral's dollar reserves hit a new high of $7.75 billion as of end-July 1994
compared with $5.52 billion a year ago, reflecting a substantial increase in foreign
investment inflow.
The main factors that will propel faster economic growth are the structural and economic policy
reforms the Ramos administration has initiated and is continuing to implement.
These include:
Liberalization of investment rules and policy guidelines with the enactment of the 1991
Foreign Investment Act to make the Philippines competitive by attracting more
international capital.
Deregulation of foreign exchange transactions to enable the free movement of capital or
fresh new funds for investment.
Public and private sector efforts to develop a stronger capital market with the listing of
new issues in the stock exchange, and provide incentives for company employees and
small investors to become shareholders of large as well as modest-size corporations.
The decision of the Bangko Sentral's Monetary Board to allow the operation of more
foreign banks in the Philippines.
Dismantling of monopolies in favor of more competition under a free enterprise or
market economy.
Liberalization of trading policies and regulations and lowering of tariff rates in line with
the decisions and terms of agreement under AFTA and GATT during the last Uruguay
Round.
Advent of a more stable political climate and the all-out effort of the government to bring
down the crime rate and restore peace and order.
Solution of the perennial power crisis.
FILIPINOS OVERSEAS
Migration Estimates
Based on stock estimates [N.B.: Estimates: computation based on the registration figures of the
Commission on Filipinos Overseas, deployment statistics of the Philippine Overseas
Employment Administration, and the data of the Department of Foreign Affairs overseas posts],
there are approximately 6.21 million Filipinos overseas as of December 1994. Of this number,
2.56M are overseas contract workers, 1.83M are immigrants, and 1.82M are undocumented.
Among the laws that have been passed by the Philippine Congress (as of June 1995) to address
the interests of Filipinos overseas workers and migrants are:
Republic Act No. 8042 was signed by President Fidel V. Ramos into law on June 7, 1995. It seeks
to institute measures for overseas employment and establish a higher degree of protection for the
welfare of migrant workers, their families, and overseas Filipinos. It affirms the State's policy of
ensuring full protection of labor, local and overseas, organized and unorganized.
While recognizing the significant contributions of Filipino migrant labor to the national economy
through foreign remittances, the law explicitly provides that the State does NOT promote overseas
employment as a means to sustain economic growth and achieve national development.
Moreover, the State accepts overseas employment as a present-day reality, and requires assurance
for the protection of the dignity and the fundamental human rights and freedoms of the Filipino
citizens.
Highlights
In line with the aim of protecting the rights of Filipino migrant labor, the Act provides for the
following programs and services:
Other salient features of the law include the progressive policy of deregulation of recruitment
activities and the eventual phase-out of the regulatory functions of the POEA, the granting of
incentives to professionals and other highly-skilled Filipinos abroad, overseas Filipino
representation in Congress, exemption from travel tax and airport fee, abolition of the
repatriation bond, and the creation of a Migrant Workers' Scholarship Fund.
Inter-country Adoption Act of 1995
Signed into law by President Fidel V. Ramos, Republic Act No. 8043 was enacted to establish the
rule governing the inter-country adoption of Filipino children.
The law specifically provides for the creation of an Inter-Country Adoption Board which shall act
as the central authority and policy- making body in matters relating to inter-country adoption.
The Board will carry out the provisions of the newly enacted law, in consultation and coordination
with the Department of Social Welfare and Development (DSWD), the different child-care and
placement agencies, as well as non-governmental organizations engaged in child-care and
placement activities. This body will be chaired by the Social Welfare and Development Secretary,
and composed of six (6) other members appointed by the President of the Philippines.
As a matter of policy, inter-country adoption will only be considered after all possibilities for
adoption of the child in his home country shall have been exhausted. In allowing aliens to adopt
Filipino children to provide every neglected and abandoned child with a family and the
opportunities for growth and development, the newly enacted law has adopted stringent
measures to ensure full protection of Filipino children. The maximum number that may be
allowed for adoption shall not exceed six hundred (600) a year for the first five (5) years, from the
effectivity of the law in 1995.
A mechanism that will be set by the DFA to monitor and check on the status of Filipino
children sent abroad for trial custody, and the repatriation to the Philippines of a Filipino
child whose adoption has not been approved.
Under the provisions of this law, persons who knowingly participate in the conduct of
illegal adoption shall be punished with imprisonment ranging from 6 years and one day
to 12 years and/or a fine of not less than P50,000 pesos, but not more than P200,000.
The Adopted
Only a legally free child (person below 15 years old, unless sooner emancipated by law, and who
has been voluntarily or involuntarily committed to the DSWD) may be subject of inter-country
adoption.
The Adoptor
Any alien or Filipino citizen permanently residing abroad may file an application for inter-country
adoption of a Filipino child, provided that he/she:
[1] At least 27 years old, and at least sixteen years older than the child to be adopted at
the time of the application unless the adoptor is the parent by nature of the child to be
adopted or the spouse of such parent;
[2] If married, the spouse must jointly file for the adoption;
[3] Capable of acting and assuming all rights and responsibilities of parental authority
under his national laws, and has undergone appropriate counselling from an accredited
counsellor in his/her country;
[4] Has not been convicted of a crime involving moral turpitude;
[5] Eligible to adopt under his/her national law;
[6] In a position to provide the proper care and support, and give the necessary moral
values and example to his children, including the child to be adopted;
[7] Agrees to uphold the basic rights of the child as embodied under Philippine laws, the
U.N. Convention on the Rights of the Child, and to abide by the rules and regulations
issued to implement the provisions of this Act;
[8] Comes from a country with which the Philippines has diplomatic relations and whose
government maintains a similarly authorized and accredited agency, and that adoption is
allowed under his/her country; and
[9] Possesses all the qualifications and none of the disqualifications provided in the Act
and in other applicable Philippine Laws.
Persons not eligible to adopt under Article 184 of the Family Code of the Philippines include the
following:
[1] The guardian with respect to the ward prior to the approval of the final accounts
rendered upon the termination of their guardianship relation;
[2] Any person who has been convicted of a crime involving moral terpitude;
[3] An alien, except:
[a] A former citizen who seeks to adopt a relative by consanguinity;
[b] One who seeks to adopt a legitimate child of his or her Filipino spouse; or
[c] One who is married to a Filipino citizen and seeks to adopt jointly with his or
her spouse a relative by consanguinity of the latter.
Aliens not included in the foregoing exceptions may adopt Filipino children in accordance with
the Inter-Country Adoption Act.
There are various considerations in the ownership of private lands in the Philippines by Filipinos
who have become naturalized citizens of other countries.
As provided for in Batas Pambansa blg. 185, the transfer (acquisition through voluntary and
involuntary sale, devise or donation) of such land to Filipinos, who have renounced their
citizenship, must be for residential purposes only.
[1] The transferee must not use the lands acquired for any purpose other than for his residence.
[2] The transferee is entitled to acquire and own private land up to a maximum area of one
thousand (1,000) square meters in the case of urban land, or one (1) hectare in the case of rural
land.
[3] For married couples, any one or both of them may avail of the said privilege, provided that if
both avail of the same, the area of land acquired shall not exceed the allowed maximum limit.
[4] In case the transferee already owns urban or rural lands for residential purpose, he may still
be entitled to be a transferee of additional urban or rural lands, provided that the total land area
owned by him will not exceed the allowed maximum limit.
[5] The transferee may acquire not more than two (2) lots, which may be situated in different
municipalities or cities throughout the Philippines, provided that the total areas of the two (2)
shall not exceed the allowed maximum limit.
[6] A transferee who has already acquired the maximum area of urban land is already
disqualified from acquiring the rural land, and vice versa.
Registration Requirements
In addition to the requirements provided for in other laws for the registration of titles to lands,
the transferee will have to submit to the Register of Deeds of the province or city, where the
property is located, a sworn statement showing the following information: date and place of birth;
names and addresses of parents, of spouse and children; area, location, and mode of acquisition
of landholding in the Philippines, if any; intention to reside permanently in the Philippines; date
he lost his Philippine citizenship; and country which he is presently a citizen.
Penalty
A transferee who violates the provisions of BP Blg. 185 through any misrepresentation in his
sworn declaration, fraudulent acquisition of the landholdings, and failure to reside permanently
in the land acquired within two (2) years from the date of acquisition, except when such failure is
caused by force majeure, shall be penalized by:
[1] Forfeiture of such lands and the improvements thereon in favor of the National Government
through escheat proceedings to be initiated by the Solicitor General or his representatives;
[2] Liability to prosecution under the applicable provision of he revised Penal Code and shall be
subject to deportation proceedings;
[3] Will forever be barred from availing of the privilege granted under Batas Pambansa Blg. 185.
Section 14, Article 11 of the 1987 Constitution provides that the State recognizes the fundamental
role of women in nation-building, and ensures the fundamental equality before the law of women
and men.
[1] Department Order 15-89, issued by the Department of Foreign Affairs, requires all Filipino
fiancees and spouses of foreign nationals to attend the CFO's guidance and counselling session, as
a pre-requisite to the issuance of passports.
In 1994, former Foreign Affairs Secretary Roberto R. Romulo reaffirmed this directive by issuing
DFA Order 28-94, to ensure the sustained implementation of guidance and counselling program
for passport applicants going abroad as fiancees/spouses of foreign nationals, and the extension
of such service in the provinces as well.
[2] Five-Year Development Plan for Women, detailing the roles and involvement of women in
nation-building.
[3] The New Family Code, passed through Executive Order No. 227, was adopted to eliminate the
discriminatory provisions to women in the Civil Code of the Philippines. Article 26 of this Code
provides, "where marriage between a Filipino citizen and a foreigner is validly celebrated and a
divorce is thereafter validly obtained abroad by the alien spouse capacitating him or her to
remarry, the Filipino spouse shall likewise have the capacity to marry under Philippine law".
Other Services
The Commission on Filipinos Overseas, in coordination with other government and non-
government agencies, has intensified its community education program in the various areas of the
country, giving special attention to women, to provide information and address the realities
involved in migration and inter-marriages.
Following are the list of requirements for individuals who are applying for passports with the
Department of Affairs (DFA):
[2] Visa approval or visa checklist, if immigrant or finance/es (For finance/es or spouses
of foreign nationals, a certificate of attendance to the guidance and counselling session,
issued by the Commission on Filipinos Overseas (CFO), must be submitted together with
certificate of legal capacity or marriage contract duly stamped or authenticated by the
foreign embassy or consulate concerned.)
[3] Two (2) passport pictures (Applicants over 7 years old must wear clothes with collar
and sleeves. Middle East countries do not allow sleeveless dress for women and long hair
for men).
Entertainers
[1] Birth certificate
[4] Clearance from the Electronic Data Processing Section (EDP), Passport Division
Contract Workers
[1] Birth Certificate
[1] Certificate of non-availability of birth record from the Local Civil Registrar concerned
[2] Voter's affidavit or baptismal certificate or certificate of non-availability of baptismal
records from
the Church concerned
[3] Joint birth affidavit of two (2) disinterested persons who know the circumstances of
the applicant's birth
[1] Joint birth affidavit of two (2) disinterested persons who know the circumstances of
the applicant's birth
Married Woman
[1] Photocopy of marriage contract (church certificate is acceptable)
Lost Passport
If passport is still valid, Police Report and Affidavit of Loss, duly received by the National Bureau
of Investigation (NBI), Bureau of Immigration, and the Records Section of the Office of Consular
Services. Fifteen (15) day waiting period is necessary unless waived by competent authorities.
If passport has expired, Affidavit of Loss, duly received by the Records Section of the Office of
Consular Services. If lost abroad, submit travel document.
Adopted Children
Government Employee/Official
[1] Travel authority from the Head of Office or Department
[2] Copy of approved Leave of Absence to spend vacation abroad
[3] If retired, retirement papers
Female Tourists [16-29 years old]
[1] Personal appearance and interview
[2] EDP clearance (EDP section, Office of Consular Service)
Applicants with Foreign Sounding Names
Applicants with foreign sounding names or with citizenship problems shall be referred to the
Citizenship Evaluation Committee (CEC) of the DFA, except:
[1] Filipino women married after the adoption of the 1973 Constitution
[2] Passport holders already with EDP/Records verification
Renewal of Passport
For renewal of passport, submit photocopies of the first 3 pages of the old passport for
cancellation.
NOTE: Applications may also be lodged by an overseas Filipino with the Philippine Embassy or
Consulate. For renewal of passports, applicants are required to submit/present their old
passports. Other details may be obtained from the Philippine Embassy/Consulate.
Travel Tax
Pursuant to Presidential Decree No. 1183, Filipinos and other nationals travelling outside the
country are required to pay travel tax before their departure.
Revenues collected are primarily used to conserve the country's dollar resources, provide
adequate funds for government programs, and assist in the tax collection process.
Coverage
Non-immigrant aliens, who have not stayed in the Philippines for more than one (1) year, are
NOT covered by the Travel Tax.
Exemptions
The following are exempted from paying the travel tax, but are required to get the appropriate
exemption certificates from the Philippine Tourism Authority:
Also exempted are diplomatic representatives, United Nations employees, US military personnel,
international carrier crew, foreign service personnel, Philippine government employees, foreign
funded trips, bona fide students on scholarships and personnel of multi-national companies.
Travel tax exemptions/reduced tax certificates can be obtained from the Philippine Tourism
Authority (PTA) upon presentation of the following documents:
[1] Passport
[2] Proof of permanent residency abroad
[3] Photocopy of Philippine Income Tax return and Proof of paid income tax for
preceding year
[4] Certificate of unemployment from the Philippine Embassy or consulate, in the case of
Filipinos who are not employed
Note: Travel tax exemption will not be granted if the Filipino's immigrant status has lapsed or if
he has stayed in the Philippines for more than one (1) year, whichever comes first.
The Assistance-to-Nationals (ATN) Task Force was created on April 6, 1995 under the mandate of
Administrative Order No. 182.
[1] Develop and implement an integrated program of government that will address the
various concerns and problems resulting from migration;
[2] Develop a mechanism to ensure effective coordination among various agencies of
government to provide solutions to illegal recruitment and exploitation of highly
vulnerable groups of migrants;
[3] Develop and implement a continuing information and community education program
to ensure the effective dissemination of information related to migration;
[4] Establish policies for the effective database management on migration statistics and
assistance-to-nationals cases;
[5] Review and develop policies to promote the welfare and interests of Filipino
migrants; and
[6] Coordinate with the private sector and international organizations, through the
appropriate agencies of the government, with the view of establishing a support network
for Filipino nationals.
The Inter-agency Committee is jointly headed by of the Department of Foreign Affairs (DFA) and
the Department of Labor and Employment (DOLE).
The other members of the ATN Task Force are the Department of Justice (DOJ), Department of
Health (DOH), Department of Social Welfare and Development (DSWD), Philippine Overseas
Employment Administration (POEA), Overseas Workers' Welfare Administration (OWWA),
National Bureau of Investigation (NBI), National Commission on the Role of Filipino Women
(NCRFW), Commission on Human Rights (CHR), Commission on Filipinos Overseas (CFO) and
four (4) private sector representatives. The CFO is the Secretariat for the ATN Task Force.
Five (5) Technical Working Groups have been created to carry out the functions of the ATN Task
Force. These are: Information and Management; Communication and Advocacy; Crisis
Management and Security; Strategic Planning; and Policy, Program and Research.
It is the duty of all Filipinos citizens who are residents abroad and currently earning their incomes
in foreign countries to file their income tax returns and pay the tax due to the Philippine
government.
The non-resident citizen's income tax return (Form 1701-C) may be filed with the Philippine
Embassy or Consulate nearest his residence or directly to the Commissioner of Internal Revenue
at the BIR Bldg., Diliman, Quezon City, Philippines.
Mode of Payment
U.S. dollar or local currencies, which may also be in check or bank draft. The check shall
be drawn in favor of the receiving Philippine foreign posts;
US dollar checks drawable against the U.S. dollar savings account of the tax payers in the
Philippines or abroad. The check shall be drawn in the name of the Commissioner of
Internal Revenue (Philippines);
Philippine currency or checks, drawable in banks in the Philippines. The check shall be
drawn in favor of the Commissioner of Internal Revenue (Philippines).
Computation
The Philippine Bureau of Internal Revenue computes taxable income of Filipino citizens overseas
based on their income after the following deductions shall have been made:
Total amount of the national income tax actually paid to the government of the foreign
country of the residence.
Surcharge of 50% in case of willful neglect to file the return or when a false fraudulent
return is filed
Delinquency interest at the rate of 20% per annum on the unpaid amount from the April
15 due date until fully paid
Compromise penalty as prescribed in Revenue Memorandum Order No. 1-90 for
specified violation of provisions of the Tax Code
Remittance from Filipinos overseas contribute to the dollar reserves of the country. Data from the
Bangko Sentral ng Pilipinas show that remittances from Filipinos overseas through the banking
system totalled US$2.9 billion in 1994. Ranked as top five (5) countries where overseas
remittance come from are: U.S.A., Saudi Arabia, Hongkong, Japan, and Germany.
Some estimates have been made by other sectors indicating that total remittances, including
those made through the informal channels, could reach US$4-US6 billion.
Remittance Procedures
Local financial institutions have introduced different modes of remitting money and
strengthening relationship with other international bank to protect and facilitate the remittance
of Filipinos overseas.
[2] Print clearly and correctly on the remittance application form the following
information regarding the beneficiary:
[3] Always keep the remitter's copy of the remittances form to serve as official receipt
and send a photo-copy to the beneficiary as this will be helpful in claiming money from
the bank.
General Guidelines
Pursuant to the National Economic and Development Authority (NEDA), the following are the
general guidelines affecting the entry of donations from overseas:
[1] Donated items that may be allowed duty-free entry are food, medicines, and other
relief goods; books and educational materials; essential machineries/equipment; and
consumer goods and other articles subject to certain conditions. Used clothes are
considered regulated or restricted items.
[2] Overseas donations may be allowed duty-free entry upon certification by appropriate
Philippine Government agencies, and if these are consigned to government agencies or
DSWD accredited organizations. Certification are required from agencies such as: DSWD,
Department of Health, NEDA, and Department of Finance.
NOTE: The request of duty-free certification should be filed before the shipment
of the donation to allow sufficient time for processing.
[3] Donated goods may only be exempted from import duties, BUT NOT from the
payment of Value Added Tax (VAT) which is 10% of total landed cost as determined by
the Bureau of Customs. ONLY BOOK DONATIONS ARE EXEMPTED FROM THE
PAYMENT OF VAT.
[4] The recipient or the donor (depending upon the arrangement made between the
parties concerned) shall shoulder the necessary expenses incurred in the processing,
handling, and release of the donated shipment from the port of entry.
Specific Procedures
Prior to authentication of the deed of donation, the Philippine Embassy/Consulate (PEC)
shall refer the prospective donor to the CFO, per DFA Memorandum Circular 17-90. The
donor should provide the following information:
o Detailed packing list/inventory of intended donations; and
o Name, address, and telephone numbers of contact/recipient organizations.
The CFO shall coordinate with government agencies concerned and designated
beneficiaries to determine if intended donations are eligible for duty-free entry, and if the
intended beneficiary is accredited to receive said donations.
The CFO shall inform the PEC and donor on the requirements and obligations relative to
the intended donations.
If the donor agrees to the terms governing the requirements for duty-free donations to
the Philippines, the PEC authenticates the Deed of Donation.
The donor sends the following documents to the recipient organization:
o Deed of donation
o Packing list
o Shipping documents
The donee/recipient organization submits to government agencies concerned the
required documents to obtain duty-free certification, PRIOR to the shipment of the
donation. The CFO shall assist the donee in coordinating with agencies concerned to
secure duty-free clearance. The donee, however, shall directly undertake/coordinate the
processing at the Bureau of Customs.
The CFO shall monitor and evaluate activities relative to disposition/utilization of
donations upon request of the PEC/donor.
The CFO shall send feedback report on the status of donation to PEC/donor.
LINKAPIL
The "Lingkod sa Kapwa Pilipino" or LINKAPIL is a program developed and implemented by the
Commission on Filipinos Overseas (CFO) in an effort to harness the vast potentials of Filipino
overseas. LINKAPIL consists of a mechanism to transfer resources from Filipino overseas to
small-scale but high impact projects in the country, particularly in the following sectors: Industry
and Agribusiness, Infrastructure, Education and Health.
Operational Framework
Coordinate with the CFO in sourcing and providing financial and material resources to
identified local beneficiaries in the Philippines.
Assist in the identification and formulation of project modules, implement the projects in
terms of technical assistance and training, as well as facilitate the transfer and release of
material donations.
Receive donations and/or assistance from Filipinos overseas. Administer the application
or distribution of resources.
[5] Beneficiary
Identifies needs in their locality. As a counterpart effort, contributes free labor and
manpower skills and ascertains the maintenance and viability of the project.
The increasing global nature of the markets and the shift of world trading from the Atlantic to the
Pacific call for a vigorous export strategy to ensure a niche for Philippine goods and services in the
Pacific Century.
In North America alone, an estimated two million Filipino immigrants comprise one of the
biggest ethnic groups in that region. This figure, which can be translated into a formidable sales
force of thousands, can be organized into a score of business chambers given their strategic
locations in the world's biggest consumer market and with investment capital waiting to be
tapped.
The Target: A Network of Filipino Entrepreneurs Abroad
With proper training and encouragement, the entrepreneurial talents of expatriate Filipinos can
be developed. Immigrants who have "got it made" can put to good use some of their savings or
investment money in business opportunities that capitalize on the natural resources of the
Philippines and its highly skilled craftsmen.
They can thereafter be encouraged to form business chambers in their cities so that they can link
up with their Philippine counterparts in the private and the public sector.
The Program
The Exports Thru Expats Training Seminar Series was conceived to motivate Filipino expatriates
in promoting Philippine traditional products and services and in investing in Philippine export
industries.
The seminars intend to equip qualified and pre-selected expatriates with the basic skills of
entrepreneurship through a comprehensive program of lectures and discussions given by
topnotch resource speakers. Topics include trade and investment policies of the Philippines,
export and import procedures, creative financing schemes, strategic planning (market research
and marketing), and highlights of bilateral trade relations.
Seminar materials allow fingertip access to necessary information on services, product profiles,
directories, trade calendars, and lists of projects which require investments.
These workshops will be held periodically in key cities around the world where there are
concentrations of Filipino expatriates and the potential for trade and investment exists.
Overseas Filipinos visiting the Philippines are provided assistance in exploring trade and
investment opportunities specially in export oriented enterprises.
This section provides a general guide for investors intending to do business in the Philippines.
An investor needs only to undertake the applicable combination of activities. Some can be done
simultaneously. Specific requirements may vary depending on several factors like foreign equity
participation, nature of business, locations, etc.
Getting Started
Investors setting up business in the country will have to comply with general registration
requirements, such as:
Operational Requirements
Special Permits/Clearances
Special permits such as: Expatriates' Visa from the Bureau of Immigration, and Alien
Employment Permit (AEP) from the Department of Labor and Employment DOLE), are
required when pursuing projects and activities in the Philippines.
Special permits and clearances will also be needed for selected export prior to every
shipment. This includes clearances from appropriate agencies, including: Bureau of
Animal Industry (BAI), Bureau of Plant industry (BPI), Bureau of Food and Drug (BFD),
Garments and Textile Export Board (GTEB).
The One-Stop Action Centers for Investment or OSAC renders frontline investment
services and assistance for walk-in and new investors. Under one location, the OSAC
houses different government agency representatives that are tasked to accept and process
investment applications. These representatives possess the authority to act on all
investment matters under their jurisdiction and, thus, facilitate the entry and setting up
of investments in the Philippines.
Various agencies also provide various quality control and technical services to investors.
Export Marketing
When in need of export marketing support, the investor can consult various government
agencies for free assistance in the following services:
Incentives
Under Book I of Executive Order No. 226, otherwise known as the Omnibus Investment Act of
1987, an investor may enjoy certain benefits and incentives, provided that he invests in preferred
areas of investment found in the current Investment Priorities Plan (IPP).
An enterprise may still be entitled to incentives even if the activity is not listed in the IPP as long
as:
The BOI, in certain instances as indicated in the IPP, may completely or partially limit the
incentives available to export products.
BOI-registered enterprises are given a number of incentives in the form of tax exemptions and
concessions. More specifically:
This applies to companies which earn at least 50% of its total revenues from export.
The Export Processing Zone Authority extends assistance on major manpower training of
laborers to firms within the zones. The National Manpower and Youth Council (NMYC) of the
Department of Labor also conducts manpower training programs.
If an investor wishes to avail of incentives, and the chosen activity is found in the IPP or for
export, he can simultaneously file his application for incentives with the BOI and the certificate of
registration with the SEC or the BTRCP. These offices are located in the following addresses:
If you will locate in any of the four EPZs in the country, 100% foreign ownership is allowed.
However, total production of firms situated inside these zones must be entirely for export. In
certain instances, and subject to the approval of the EPZA, thirty (30) percent of production may
be sold in the domestic market.
Investors locating in any of the four (4) export processing zones in the country must register with
the:
Aside from these areas, some privately-owned industrial estates have been designated as Special
Export Processing Zones. This in line with government's industrialization effort to become a
world-class investment center in the future.
In line with the vision of the Philippines 2000 under the Medium Term Philippine Development
Plan (MTPDP), the main areas of concern of the Department of Trade and Industry (DTI) are in
industry and market expansion, countryside development, and consumer welfare.
These concerns are reflected in the goals of the 1995 Investment Priorities Plan (IPP), to wit:
[1] Enhance the global competitiveness of Philippine products and services, thus opening
global markets;
[2] Raise and sustain productivity in the economy, especially in agriculture and fishery;
[3] Improve and increase infrastructure and other facilities necessary for the speedy
movement of goods and services;
[4] Promote a well-managed environment and the sustainable development of natural
resources;
[5] Disperse industry from heavily congested areas; and
[6] Alleviate poverty, especially in the countryside.
Pioneer activities listed in the IPP maybe owned 100% by foreign nationals, subject to
constitutional or statutory limitations.
Pioneer enterprises shall be entitled to a tax holiday (ITH) for a period of six (6) years from the
start of commercial operations.
Pioneer enterprises are required to attain Filipino status (60% Filipino) within 30 yearsor such
longer period as the BOI may determine. Exempted are enterprises whose production is 100%
geared for exports.
1. Export activities
2. Agriculture, food, and forestry-based industries
3. Basic Industries, including: iron and steel (P), cement (P), and mining
4. Engineering industries
5. Infrastructure and services, including: power generation (P/NP), transport operations
(NP)
6. Health products and services, including: herbal medicines (P), diagnostic centers (NP)
7. Modernization and rehabilitation programs
8. Environmental conservation and protection, including: forest plantations/farms (NP),
integrated waste management to service domestic industries (P)
9. Research and development activities (Science and Technology Oriented) (P)
Additional Priority Investment Areas are available in the Autonomous Region in Muslim
Mindanao (ARMM)
Coverage
The Act covers all investment areas or economic activities except banking and other financial
institutions which are governed and regulated by the General Banking Act and other laws under
the supervision of the Central Bank of the Philippines.
The coverage for restrictions pertains to foreign equity participation only. All other regulations
governing foreign investments remain in force.
Qualifications
As required by existing law, the country or state of the applicant must also allow Filipino
citizens and corporations to do business therein.
[3] Existing enterprises shall be allowed to increase the percentage share on the foreign
equity participation beyond current equity holdings only if their existing investment area
is not in the FINL. Similarly, existing enterprises engaged in more than one (1)
investment area shall be allowed to increase percentage of foreign equity participation if
none of the investment areas they engaged in is in the FINL.
Existing foreign corporations shall be allowed to increase capital even if their existing
investment is in the FINL.
Transfer of ownership from one foreign company to another shall be allowed even if the
enterprise is engaged in an area in the FINL as long as there is no increase in the
percentage share of foreign equity.
Note: Foreign investment Negative List (FINL) is a list of areas of economic activity
whose foreign ownership is limited to a maximum of 40% of the outstanding capital
stock, in case of a corporation, or capital, in case of a partnership.
Limitation
Under the Regular Investment Negative List are (3) component lists: A, B and C, which contain
areas of economic activities reserved for Philippine nationals.
[1] List A: foreign ownership is limited by mandate of the constitution and specific laws.
It defines areas where no foreignvequity is allowed, and those where up to 25%, 30%,
40% foreign equity is allowed.
[2] List B: foreign ownership is limited for reasons of security, defense, risk to health and
morals and protection of local small and medium scale enterprises. It defines areas where
foreign equity is allowed up to 40%.
[3] List C: Contains investment areas in which existing enterprises already adequately
served the needs of the economy and the consumers and in which foreign investment
need not be encouraged further.
Areas not in the negative list of the Foreign Investment Act of 1991 can be 100% owned.
Qualification Requirements
Any alien, except national from South Africa, Northern Korea, and Cambodia and such other
countries that may be classified restricted in the future, and who meet the following qualifications
may be issued the Special Investors Resident Visa (SIRV), provided:
Privileges
The holder of a Special Investor's Residence Visa shall be entitled to reside in the Philippines for
an indefinite period while his investments exist. He is entitled to import used household goods
and personal effects tax and duty-free as an alien coming to settle in the Philippines for the first
time.
The investor's spouse and unmarried children under 21 years of age who are joining him in the
Philippines may also be issued the same visa.
Areas of Investment
Holders of this visa can invest in any project, except: retail trade, rural bank and mass media.
Percentage of foreign investment will be limited by the provision of applicable laws, rules, and
regulations depending on the area of activity.
Investors may apply at the Philippine Embassy or Consulate Office in the home country or place
of resident of applicant. If the interested investor is already in the Philippines, he may file the
application for issuance of SIRV with the One Stop Action Center (OSAC) located at the Ground
Floor of the Board of Investments, 385 Gil Puyat Avenue, Makati City, Metro Manila.
PHILIPPINE IMMIGRATION POLICIES
Among the policies of the Bureau of Immigration (BI) with regards returning Filipino overseas to
the Philippines are the following:
[1] Naturalized citizens of Filipino descent can return for a visit to the Philippines for one
(1) year, without acquiring visa.
Extensions may be requested at the BI office.
[2] The BI has established an "Express Lane" service to allow its clientele to obtain
certain documents within the same
date of filing.
Non-quota Immigrant
Pursuant to Republic Act 4376, which is being implemented by the BI, a natural born citizen of
the Philippines who has become a naturalized citizen of another country and is returning for
permanent residence in the Philippines with his spouse and minor unmarried children, shall be
considered a Non-Quota Immigrant.
Those who are already in the Philippines, however, may be permitted to apply for a change of
status. Application, in this case, may be lodged with the BI office at Intramuros, Manila.
Waiting time for processing is three (3) months or less. Fees to be collected is about
P1,530 for an individual over 16 years of age.
Procedure in Manila
[1] Secure and accomplish the application form for change of status at the BI building
located in the same office.
[2] Attach letter request with the supporting documents to the application form, and
have these received at the Board of Special Inquiry (BSI) in the same office.
[3] Bring the completed application form to the Law Investigation Division (LID) for
examination and verification of documents.
[4] The LID will transmit the application to BSI, which will calendar the hearing in open
court. The applicant will be informed, personally or by mail, of the hearing date which
shall not be less done three (3) days from notice. No postponement will be granted. The
BSI will hear continuously within a period not exceeding two (2) days.
The applicant may be represented by a counsel of his own choice. He may present
not more than two (2) witnesses in support of his application. Upon the
termination of the hearing, the BSI will issue a claim stub informing the applicant
to return after a waiting time of three (3) months.
[5] Within three (3) days following the termination of the hearing in open court, the BSI
will submit to the BID Board of Commissioners a legal memorandum stating the factual
and legal bases for its recommendation to either approve or deny the application.
[6] On the date specified on his claim stub, the applicant surrenders the said stub at the
BID, where he will be furnished a copy of the decision on his application.
[7] After payment of the immigration fees, the passport of the applicant will be
appropriately stamped.
Student Visa
An alien admitted into the Philippines under any visa category may apply at the Bureau of
Immigration for change/conversion of admission status from an alien to that of a student under
Section 9(f) of the Philippine Immigration Act of 1940, as amended pursuant to E.O. No. 188.
Documentary Requirements
The student shall submit the following documentary requirements to the school's designated
Liaison Officer who will handcarry the documents together with an endorsement letter, signed by
school's registrar and stamped with school's dry seal, to the Bureau of Immigration:
Temporary Residence
The alien shall be granted an initial one (1) year authorized stay as a student.
The said stay of one (1) year stay as student may be extended by the Bureau of Immigrationby
semester subject to other specific requirement.
Exemptions
The principals, spouses and unmarried dependent children below 21 years of age of thefollowing
categories as aliens shall not be required to secure student visa and special study permit:
[1] Permanent Foreign Residents (Immigrants);
[2] Aliens who have valid admission status under either Sections 9(d) or 9(g) or 47(a)(2)
of the Philippine Immigration Act of 1940, as amended;
[3] Personnel of foreign diplomatic and consular missions;
[4] Personnel of duly accredited international organizations based in the Philippines;
[5] Aliens who have a valid Special Investor Resident Visa; and
[6] Aliens who have a valid Special Resident Retirees Visa.
Under Philippine Immigration Laws, a non-immigrant, having sufficient means for his education
and support in the Philippines, who is at least 18 years old, and who seeks to enter the country
temporarily and solely for the purpose of taking up a course of study higher than High School at a
university, seminary, academy, college or school approved for such alien students by the
Commissioner of Immigration, may be issued a Student Visa.
A foreign national who may not otherwise qualify as a student may nonetheless be granted a
special study permit (SSP) subject to the guidelines on qualification and other requirements.
Qualifications
The following foreign nationals, upon filing of proper application, may be granted an SSP:
[1] Dependent spouse and/or unmarried children below 21 years old of a foreign national
who has been granted a non-immigrant visa, or a special non-immigrant visa, or a
temporary resident visa (TRV); or any appropriate visa under special laws; or recognized
as a refugee or person of concern by the United Nations High Commissioner for Refugees
(UNCHR), regardless of the level of education to be obtained. Dependents of qualified
diplomats and/or members of the United Nations and its specialized agencies , the Asian
Development Bank, and personnel of international and regional organizations shall be
exempted from this requirement.
[2] A foreign national and his dependent spouse and/or unmarried children under 21
years old, if any, during the pendency of their applications for a visa. The SSP granted
pursuant to this paragraph shall be valid only during the pendency of the application.
[3] A temporary visitor taking up short term courses whose enrollment does not require
approval by the Department of Education, Culture and Sports, like languages and
computer science.
The application for an SSP shall be filed with the Law and Investigation Division of the BI, which
shall assign to each application, a control number.
BUREAU OF IMMIGRATION
Magallanes Drive, Intramuros, Manila
Tel. Nos. 40-74-49/40-83-68/530-04-06
[1] Letter indicating consent of either or both parents of the minor to travel
unaccompanied by the former;
[2] Photocopy of the data page of the minor's passport; and
[3] Payment of the required fees at the Main Immigration Office before the minor's
arrival or immediately upon arrival at the port of entry.
All applications for WEG shall be filed with the Office of the Commissioner at least five (5) days
before the arrival of the minor.
Overseas Filipino arrivals or "balikbayans" constituted 10.11% of the total visitor traffic to the
Philippines in 1994.
Lakbay-Aral
The program is fun-filled and experiential approach to learning about the Filipino way of life
offered to children of Filipino immigrants. The program, developed by the Commission on
Filipinos Overseas, is conducted in the Philippines and provides various opportunities for
participants to appreciate their roots and country of origin.
Objectives
[1] Enrich the participants' understanding of the Philippines and its people;
[2] Enhance awareness and appreciation of the rich Filipino cultural heritage;
[3] Instill and preserve a sense of nationalism and pride among the participants; and
[4] Bridge the cultural gap between the participants' acquired culture and that of his
historical roots.
Program Features
It also provides opportunities for the participants to interact with other Filipino students, key
government officials, and the Filipino community.
This 3-year promotional program of the Department of Tourism (DOT) seeks to encourage all
Filipinos residing locally or abroad, as well as expats living in the Philippines, to help promote
tourism by inviting their friends overseas, to come and visit the Philippines in exchange for very
attractive raffle prizes for the sponsor and the invitees.
Mechanics
[1] Entry forms can be obtained in the Philippines from any of the DOT offices, airports,
and accredited agencies; and overseas, from the Philippine Embassies and Consulates,
PAL ticketing office, and DOT and DOLE offices overseas.
[2] Participants will earn points corresponding to the number of miles travelled by his
invitee from point of origin to the Philippines. Each point is equivalent to one raffle
coupon.
Balikbayan Program
Republic Act 6768 was enacted on November 3, 1989, instituting a "Balikbayan" Program for the
Philippines, and providing certain privileges and benefits to returning Filipino workers, former
Filipino citizens and his family, and other Filipino citizens who have been out of the country for
more than one (1) year.
Benefits
[1] Tax and duty-free custom-cleared shopping privilege up to U.S. $ 1,000 in Philippine
duty-free shops;
[2] Visa-free entry for one year;
[3] Travel tax exemptions;
[4] Especially designated reception areas at authorized ports of entry for expeditious
processing of documents.
With this card, returning Filipinos can enjoy more benefits such as discounts in shopping
establishments, restaurants, bank remittance transaction charges, hotel room rates, transport
fares, and even overseas calls.
Requirements
The Plus Card is issued, free of charge, to legitimate and certified balikbayans, as evidenced by
required documents.
[1] To get a card, the Filipino overseas workers will have to present his passport and any
of the following:
[2] Filipino citizens and their families who have been naturalized, must present their
passport or any of the following:
Plus Card application forms are available at the Department of Tourism and other
authorized outlets in the Philippines.
The "Balikbayan" Plus Card will be sent to the respective card owners at their local
addresses or places of employment.
"Kabuhayan 2000: Sa Pagbabalik ng Pinoy" involves the establishment of the best possible
mechanisms for the reintegration of returning overseas contract workers (OCWs) with the
endview of facilitating sustained income, either thru enterprises formation, investment of savings,
and better wage employment. It is a network of programs and services of various agencies under
the coordination of the Department of Labor and Employment.
Qualification
All OCWs and their dependents are qualified to avail of the services under the program.
Program Features
[2] Investments
For workers who have investible savings, Kabuhayan 2000 can provide viable investment
opportunities. The offices cooperating under the program present various facilities which
provide options for OCWs to increase their capital. The workers may purchase from the
various selections of real estate properties, trust funds, stocks, securities and/or bonds
with high growth potentials.
The Kabuhayan 2000 recognizes the need for human resource development. Services
included in the program include the provision of skills, knowledge, and attitude training
for the OCWs.
Kabuhayan Shopping
The Kabuhayan Shopping program of the Duty Free Philippines supports the provision of
livelihood opportunities for OCWs. Through this program, OCWs shall be entitled to purchase
livelihood tools and equipment at the Kabuhayan Shopping Section. These items shall be tax and
duty free.
For a minimum purchase of US$200, the OCWs may avail of the benefit package which includes
among others free training through other training agencies such as NMYC, TLRC, and CMDF.
Financing assistance shall be an additional component for those who require low interest loans.
Retirement Program
The Philippine Retirement Authority (PRA) is implementing a retirement program for foreigners
and overseas Filipinos. This involves the issuance of a Special Resident Retiree's Visa (SRRV).
Qualified Applicants
[1] Any foreign national, except those national of countries with which the Philippines
does not have diplomatic relations and those considered restricted by the Department of
Foreign Affairs.
[2] Overseas Filipinos who are immigrants or under a visa category, allowing them legal
stay abroad and have resided therein continuously for at least seven (7) years prior to
their application for enrollment in the program and should not have stayed a maximum
of sixty (60) days in a year in the Philippines.
Deposit Requirements
Age Required Deposit
------------------------- ---------------------------
50 years old and above US$50,000
35 - 49 years old US$70,000
Former/Overseas Filipinos None
Pag-IBIG Fund is a nationwide savings fund established on December 14, 1980 through
Presidential Decree No. 1752. Today, Pag-IBIG is one of the strongest financial institutions in the
country with assets of over P21 billion. Active membership stands at 1.3 million nationwide. Total
membership base is 2.1 million.
The Pag-IBIG Filipino Overseas Worker (Filow) Program aims to provide Filipino overseas
workers/immigrants the opportunity to save for their future, while giving them the chance to avail
of a housing loan. Maximum loanable amount is P500,000, with interest rates at 9%-17% per
annum, depending on the loan package.
Membership Requirements
The FiLOW Program is open to all Filipino overseas workers with valid working visas or
employment contracts. Filipino immigrants who are Pag-IBIG members, however, may opt to
register under the FiLOW Program or simply maintain their membership.
Benefits on Savings
[1] Fixed dividend earnings of 3% per annum for dollar savings and 7.5% per annum for
peso savings
[2] Tax-free dividend earnings
[3] Savings guaranteed by the Philippine Government
[4] Portability, since savings will remain under the same name even after change of
employers
The total savings under the program may be withdrawn at the end of 5 to 10 years depending on
the option stated during the registration. Withdrawal of savings before maturity shall be allowed
in cases of death, total disability, insanity, separation from service by reason of health, and
permanent departure from country.
Loans can be availed for properties in the Philippines only for any of the following purposes:
Those who earn less than US$1,000 a month may borrow up to P250,000, while those who earn
more than US$1,000 a month may borrow as much as P500,000.
Registration
Filipino overseas workers/immigrants may mail the accomplished application form with a
photocopy of their present work contract to any of the Pag-IBIG Fund offices nationwide or at the
following address:
Filipino overseas workers on the jobsite can send their application forms, with a photocopy of
their present work contract, to the nearest Philippine Embassy/Consulate or the Overseas
Workers Welfare Administration (OWWA) office.
Medicare
Executive Order No. 195 and Department of Labor and Employment Order No. 37 (series of 1994)
mandates a compulsory medical care coverage to Filipino OCWs. The Philippine Overseas and
Employment Administration (POEA) also issued Memorandum No. 70, providing for the
guidelines for the medical care program.
Coverage
[1] OCWs who have been recruited and placed by licensed manning agencies;
[2] Those recruited and placed by the POEA;
[3] Name hires;
[4] Vacationing OCWs;
Exemption
The provisions of the POEA circular does not apply to seafarers and land-based workers who are
active members of the Philippine's Social Security System and the Government Service Insurance
System.
Beneficiaries
Entitlement
Beneficiaries shall be entitled to benefits under the medicare program if he has paid at least one
year contribution within the immediate three (3) month-period prior to the first day of
confinement.
Benefits include:
Specific Procedures
[1] OCWs will fill up the OCW Medicare Information Sheet (MIS). Accomplished form
will be evaluated by the Medicare Registration Center.
[2] Pay a premium of not more than P900 per member for a year's coverage. A
corresponding proof of payment shall be issued.
[3] Workers seeking exemptions for the compulsory medical coverage are required to
attach certificate of active SSS/GSIS Voluntary membership status.
ACKNOWLEDGMENT
The Commission on Filipinos Overseas (CFO) attributes the realization of the 3rd Edition of the
Handbook on Filipinos Overseas to the following:
Mr. Rey Ciocon, Formulation of Value and Belief System for the Global Filipinos
Mr. Bernardino Ronquillo, The Year in the Philippine Business, Fookien Times
Philippines Yearbook 1994
Philippine Business Report, Economy Grows in the 1st Quarter, Trade and Industry
Information Center
Board of Investments (BOI)
Department of Trade and Industry (DTI)
Bureau of Immigration (BI)
Bureau of Internal Revenue (BIR)
National Economic Development Authority (NEDA)
Philippine Retirement Authority (PRA); and Pag-IBIG Fund