DFA monitoring impact of Italy’s money remittance tax on OFWs

MANILA — The Department of Foreign Affairs (DFA) said Thursday it will monitor Italy’s impending imposition of a new remittance tax on non-European Union (EU) states and its effect on overseas Filipino workers (OFWs) sending money to the country.

The remittance tax of 1.5 percent will be imposed on top of the service charge migrants pay for money transfer transactions to non-EU nations, which includes the Philippines.

Foreign Affairs Assistant Secretary Elmer Cato said the tax decree is not yet fully implemented, but “the Philippine Embassy in Rome is continuously monitoring the matter.”

According to Cato, Italian law still requires the issuance of implementing regulations within 60 days upon entry into force of the law, which was passed on December 17, 2018.

Some 170,000 Filipinos are working in Italy, majority of whom are in the domestic services sector. Joyce Ann L. Rocamora / PNA – northboundasia.com