Philippine Travel Tax (PH Tax)
In addition to the potential fare advantage, please be informed that the tax application for CA-LGCY options may also differ, as it follows the tax regulations applicable to a Point of Sale outside the Philippines.
For itineraries that include an outbound segment from any city in the Philippines, the Philippine Travel Tax is not applicable if the fare is sourced from CA-LGCY. This is because CA-LGCY is classified under an international Point of Sale, and according to the guidelines of the Philippine Tourism Infrastructure and Enterprise Zone Authority (TIEZA), travel tax is only imposed on passengers whose tickets are issued in the Philippines.
Conversely, for fares sourced from PH-LGCY, the Philippine Travel Tax is automatically included in the total fare calculation, in line with the standard practice of applying the tax to tickets issued within the country.
With the availability of CA-LGCY fares, this setup also introduces an improved workflow, particularly in managing cases related to Philippine Travel Tax Exemption and PH Tax Override, since the tax is no longer pre-collected for this booking source.
Once you have selected a fare, please immediately review the tax breakdown and specifically check for any tax codes labeled “PH” to verify if the Philippine Travel Tax has been included.
Looking at the example above, it is also worth highlighting that even if you choose a CA-LGCY fare and settle the Philippine Travel Tax separately at the Travel Tax Counters at the airport or online, you would still benefit from a fare advantage of PHP 403.00 compared to selecting PH-LGCY.
Let us highlight additional scenarios where you can take advantage of the tax application setup under CA-LGCY fares. These situations will help you maximize fare opportunities and benefit from the flexibility in tax handling offered through this Point of Sale, provided that the itinerary includes an outbound segment from the Philippines.
Scenario 1: Booking for Overseas Filipino Workers (OFWs)
If your passengers are Overseas Filipino Workers (OFWs), you can take advantage of the CA-LGCY fare setup. Instead of submitting a PH Tax Exemption request to the WCA Connect Team, you may simply select a CA-LGCY fare and proceed with ticketing immediately, as the Philippine Travel Tax is not pre-collected for this source.
Please ensure that your passenger holds valid and acceptable OFW documents to support their eligibility for the travel tax exemption, as these may still be required at the airport upon departure.
Aside from OFWs, Filipino citizens who fall under certain categories may also be exempted from paying the Philippine Travel Tax as per Presidential Decree No. 1183 and related regulations by TIEZA. You may view the complete list here.
Scenario 2: Booking with Adult and Child Passengers
If your booking includes both adult and child passengers, you can take advantage of the CA-LGCY fare option to simplify the process. Instead of requesting a PH Travel Tax Override through the WCA Connect Team, you may proceed to issue the ticket under CA-LGCY and allow the passenger to pay the full travel tax directly at the airport or online.
Additionally, if your passenger later manages to secure a Reduced Travel Tax (RTT) certificate for the child after the CA-LGCY ticket has been issued, they can still present this at the airport and will be entitled to pay the reduced tax rate (PHP 810.00) applicable to children.
By selecting a CA-LGCY fare, you will also avoid the system prompt that normally prohibits ticketing and requires you to email the WCA Connect Team. This provides a more seamless and efficient workflow for handling such scenario.
Scenario 3: Booking with Non-Philippine Passport Holders Passengers
If your booking includes passengers holding non-Philippine passports, you can take advantage of the CA-LGCY fare setup to simplify the process. These passengers may be eligible for Philippine Travel Tax exemption if their stay in the Philippines does not exceed one (1) year from their most recent date of entry.
By selecting a CA-LGCY fare, the Philippine Travel Tax is not pre-collected, allowing the passenger to settle the tax only if required, or present proof of eligibility for exemption directly at the airport during check-in. This eliminates the need to request a tax exemption override prior to ticketing and provides a more efficient workflow for handling such cases.
If your booking includes a mix of Philippine and non-Philippine passport holders, please note that it is not allowed to request the addition of the Philippine Travel Tax under a CA-LGCY fare. In this scenario, you are advised to either:
Select a PH-LGCY fare, where the Philippine Travel Tax is automatically included;
Split the booking and issue separate PNRs — one for Philippine passport holders using a PH-LGCY fare, and one for non-Philippine passport holders using a CA-LGCY fare.
Important Note:
For flights departing from MNL that include the LI Tax (Terminal Fee), CA-LGCY fares are not eligible for tax exemption. If your passenger is entitled to a terminal fee exemption, please ensure you book using PH-LGCY instead to apply the correct exemption.
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