Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

“ EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__2071

Sponsored by: Congressman BIENVENIDO M. ABANTE, JR.

EXPLANATORY NOTE

It is a declared Principle of the State that the “Separation of the Church and
State shall be inviolable.” Likewise, the Constitution guarantees that no law shall
be passed prohibiting the free exercise of religion and the free exercise and
enjoyment of religious profession and worship shall forever be allowed. It declares
too that charitable institutions, churches and parsonages, and all lands, buildings
and improvements, actually, directly and exclusively used for religious, charitable
or educational purposes shall be exempt from taxation.

The foregoing notwithstanding, it is ironic that to enjoy tax exemption,
churches are being required to secure first form the Bureau of Internal Revenue tax
exemption certificates. On the other hand, Bibles and other religious articles sent to
the Philippines by foreign churches which are not for sale or for profit are being
taxed.

This Bill, therefore, aims to do away with the requirement of tax certificates
for churches to be tax exempt from specific transactions, properties, goods,
merchandise and other articles used actually, directly and exclusively for religious,
charitable, or educational purposes, hence its immediate passage is eamestly
requested.

BIENY, , ABANTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon city

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. _2874

Sponsored by: Congressman BIENVENIDO M. ABANTE, JR.

AN ACT

EXEMPTING BIBLES AND OTHER RELIGIOUS ARTICLES AND
CERTAIN MERCHANDISE FROM TAXES, DUTIES, FEES AND
OTHER CHARGES, EXEMPTING CHURCHES FROM THE
REQUIREMENT OF TAX EXEMPTION CERTIFICATES IN AVAILING
TAX EXEMPTIONS, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the

Philippines in session assembled:

SECTION 1. Declaration of Policy. — It is the Policy of the State to
give full meaning to the Constitutional declaration that the separation of
church and State shall be inviolable, and that churches, parsonages or
convents appurtenant thereto, and lands, buildings, and improvements,
actually, directly, and exclusively used for religious, charitable, or
educational purposes are exempt from taxation, as well as the Constitutional
guarantee on the free exercise of religion in a manner least inconvenient and

with the least interference to or restrictions on the church.


SEC. 2. Tax-Exempt transactions and Articles. — The following
transactions and articles shall be exempt from tax of any kind, including

customs duties, fees and charges:

a. Ownership, and transfer of any nature, of real or personal property
from a private person or entity to a church or from a church to another
church: Provided, That such property shall be used actually, directly, and
exclusively for religious, charitable, or educational purposes: Provided
further, That such church is duly registered with the Securities and Exchange
Commission;

b. Bibles, religious books or articles, medicines, and other articles and
merchandise exported to the Philippines by way of donation to a church in
the Philippines; Provided, That such bibles, religious books or articles,
medicines or other articles or merchandise are intended for the exclusive use
by such church and/or for free distribution to and use by the members of the
consignee-church or for free distribution and use by the less fortunate as
may be determined by the consignee-church in coordination with the
Department of Social Welfare and Development: Provided further, That
such church is duly registered with the Securities and Exchange
Commission; and

c. Sports and office appliances and equipments or articles exported to
the Philippines for the actual, exclusive and direct use of the consignee-
church: Provided, That such church is duly registered with the Securities and

Exchange Commission

SEC. 3. Tax Exemption Certificates. - The Bureau of Internal
Revenue shall, upon application, issue to any church duly registered with the
Securities and Exchange Commission as such a Certificate of Tax
Exemption which shall be exhibited in claiming tax exemption under
Section 2 hereof: Provided, That only churches duly registered with the

2


Securities and Exchange Commission shall be entitled to such tax exemption
and tax exemption certificate: Provided further, That such certificate of tax
exemption shall be valid until revoked for cause by the Bureau of Internal

revenue.

SEC. 4, Revocation of Certificate of Tax Exemption. — The Bureau of
Internal Revenue shall revoke a certificate of tax exemption issued under
this Act should it appear after due notice and hearing that the transaction,
property, books, article, medicine or merchandise for which tax exemption
was claimed was not used as provided for under Section 2 hereof: Provided,
That in case of revocation of a tax exemption certificate, the church that
claimed such exemption shall pay the tax, duties, fees or charges which
should have been paid were it not for such exemption claimed plus a penalty
equivalent to twenty five percent (25%) of the amount due: Provided further,
That in case of revocation, no new certificate of tax exemption shall be

issued again to such church.

SEC. 5. Implementing Rules and Regulations. — Within sixty (60)
days from the effectivity of this Act, the Department of Finance, Bureau of
Internal Revenue, Bureau of Customs, and other concerned government
agencies, shall jointly promulgate the implementing rules and regulations, as
may be necessary to ensure the efficient and effective implementation of the

provisions of this Act.

SEC. 6. Separability Clause. - If for any reason any section or
provision of this Act, or any portion thereof, or the application of such
section, provision or portion thereof to any person, group or circumstance is
declared invalid or unconstitutional, the remaining provisions of this Act

shall not be affected by such declaration and shall remain in force and effect.

SEC. 5. Repealing Clause. — All provisions of laws, decrees, executive

issuances, rules and regulations, or parts thereof inconsistent with the


provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 6. —Effectivity. — This Act shall take effect fifteen (15) days after
its publication in at least two (2) national newspapers of general circulation.

Approved,