Remittances from Overseas Filipino Workers (OFWs) will not be taxed under the Comprehensive Tax Reform Program (CTRP) of the Department of Finance (DOF).
DOF Undersecretary Karl Kendrick Chua assured this in an emailed statement to GMA News on Wednesday.
In separate hearings of the Senate and House ways and means committees, DOF officials explained that the government only has jurisdiction over domestic remittances.
Value-added tax (VAT) is imposed on the amount charged for the service of money transfer companies.
“We have to distinguish between foreign and domestic remittances. Those coming from abroad are not within our tax regime, so that is not covered under the CTRP,” Chua said, according to GMA News.
Chua said the tax laws applicable to remittances from OFWs are those from the country of origin of the remittance.
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