Published 19 November 2021, The Daily Tribune
In our previous column, we discussed the different types of retirement visa. Below is the summary of benefits that go with the retirement visa.
Exemption from customs duties and taxes for one-time importation of household goods and personal effects worth up to $7,000 which should not be of commercial quantity and must be availed of within 90 days upon issuance of the SRRV.
A retiree may be exempt in paying taxes for importation of belongings or household goods (i.e. furniture or appliances) in estimate worth of $7,000 by submitting to PRA the required documents and proof of payment fee for Department of Finance (DOF). PRA, in turn, will make the endorsement to the DOF which in turn will issue the Exemption Approval for custom duty on importation to be presented to the Bureau of Customs.
A retiree may choose to dispose the personal effects/ household goods within three years from importation and pay the taxes due accordingly. Should the retiree decide to terminate the SRRV within three years following the entry of the personal effects/ household goods, a retiree may either 1) pay the necessary taxes and duties; or 2) ship back the items to the country of origin.
Exemptions from Bureau of Immigration of Annual Registration Requirements
In general, foreign nationals classified as immigrants who possess an Alien Certification Identification Card (ACR I-card) are required to report to BI annually within the first 60 days of a calendar year. PRA members, on the other hand, are exempt from the requirement to secure annual registration with the BI.
Conversion of Visa Deposit
As mentioned above, one of the important requirements for SRRV application is to open a dollar deposit in any PRA accredited bank. A retiree who avails of the SRRV Classic or SRRV Courtesy enjoys the privilege of using dollar deposit into active investment after six months when the retiree account was opened in the PRA accredited bank. These active investments include but are not limited to the purchase of condominium units and long-term lease of a parcel of land, house and lot for 50 years, renewable once for another 25 years.
Interest earned in foreign deposit account can likewise be received as income and withdrawn anytime.
Likewise, the dollar deposit may be converted into a Philippine deposit or euro money after the issuance of the SRRV. The resident retiree may also get his money back as a Visa Deposit if he decides to withdraw from the Retirement Program.
Free Assistance from other government agencies
SRRV grants a vast opportunity to work, invest, and study in the Philippines. To do so, the Philippine government assures assisting the retiree in securing the necessary requirement from the government agencies. For instance, a retiree wanting to work in the country may be assisted to apply for his Alien Employment Permit from DOLE.
Exemption from payment of Travel Tax for SRRV holder not staying more than 1 year from the last date of entry
While all travelers departing from the Philippines are required to pay for the travel tax, the SRRV holder, on the other hand, enjoys the privilege of exemption from the supposed travel tax of P1,620 for passengers in economy/business class or P2,700 for passengers on first-class, as long as the holder has not stayed for more than 1 year from the date of his last entry in the Philippines.
Whether you are only 35 or young at heart, the promising nature of SRRV would surely make you feel secure. To understand more of the documentary requirements and registration procedures of SRRV, you may visit PRA’s official website at www.pra.gov.ph.