OFWs thank GMA for tax info exempt

All Overseas Filipino Workers (OFWs) deployed in various parts of the world are now exempted from filing tax information on incomes derived from sources outside the Philippines.

This development came after the Department of Finance (DoF) issued Revenue Regulations No. 5-2001 repealing a previous order that prescribes the filing of information returns by non-resident citizens, overseas contract workers and seamen with respect to their income abroad.

In a report to Malacañang, Philippine Ambassador to the UK Cesar Bautista informed President Gloria Macapagal-Arroyo that many Filipinos, particularly those in the United Kingdom and Ireland, have expressed their gratitude for her concern for their welfare.

"Almost all of them (OFWs) are grateful for Her Excellency’s prompt response and will probably write to you directly about this," Bautista told the President in a letter.

Bautista recommended to the President last May the repeal of the Bureau of Internal Revenue requirement for OFWs following the series of consultations with Filipinos in UK and Ireland.

Following consultations he conducted, Bautista informed the President that the OFWs find the tax information requirement "onerous and burdensome," especially if they work far from the embassy.

"It costs the OFW considerable time and money when complying with this requirement," Bautista added in his letter to the President.

Aside from the lifting of the information returns for the OFWs, Bautista also sought the waiving of placement fees for recruits to the UK, Ireland and other countries where the employers are mandated to shoulder such expenses.

He expressed confidence that the Department of Labor and Employment (DOLE) will be able to remove the hefty placement fee before year-end.

According to Bautista, certain countries such as Ireland and the UK have declared it illegal to require recruits to pay for services related to their recruitment since the employers are mandated to shoulder such costs.