Republic of the Philippines

J: 24, 2023 |
HOUSE OF REPRESENTATIVES [|= DATE January 24,2028

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Quezon City
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NINETEENTH CONGRESS ‘G By Bei
First Regular Session 1S Ng $
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HOUSE BILL NO. 6891

Introduced by: REP. TOBIAS “TOBY” M. TIANGCO

EXPLANATORY NOTE

It is a declared policy of the State “to promote a just and dynamic social order
that will ensure the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.” -

A study from Philippine Statistics Authority (PSA) shows that majority of the
Filipino senior citizens are not financially protected, which means that the benefits and
pensions they receive are not enough to sustain their basic needs. More than 800,000
Filipinos aged 60 and above in 2018 “lived below the unbelievably low poverty threshold
of Php71 a day.”

More than 75% of Filipino senior citizens who were economically dominant
persons in their households were not covered by social security, specifically retirement
plan. A significant proportion of those covered by social security had low retirement
benefit level, which may not be sufficient to cover their current (and future) level of
consumption.

The current law, Republic Act No. 9994, “An Act Granting Additional Benefits and
Privileges to Senior Citizens,” provides for “exemption from the payment of individual
income taxes of senior citizens who are considered to be minimum wage earners in



accordance with Republic Act No. 9504.” This proposed measure intends to grant
income tax exemption to all senior citizens.

Granting tax exemption for senior citizens will serve as manifestation of the
State's commitment to protect and promote the welfare of the people particularly the
vulnerable elderly sector and in effect it will maximize the contribution of senior citizens
to nation building

In light of the foregoing, the approval of this bill is earnestly sought.

“TOBY” M. TIAN
Representative
Lone District, Navotas City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 6891

Introduced by: REP. TOBIAS “TOBY” M. TIANGCO

AN ACT
GRANTING INCOME TAX EXEMPTION FOR SENIOR CITIZENS AMENDING FOR
THE PURPOSE SECTION 24(A) of the NATIONAL INTERNAL REVENUE CODE OF
1997, AS AMENDED

Be it enacted by the Senate the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Income Tax .
Exemption for Senior Citizens Act’

SEC. 2. A new paragraph in Section 24A, is hereby added to the National
Internal Revenue Code of 1997, as amended, to read as follows:

“Section 24. Income Tax Rates. —

(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the
Philippines,

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(2) Rates of Tax on Taxable Income of Individuals. —The tax shall be
computed in accordance with at the rates established in the following

schedule:

(a) Tax Schedule Effective January 1, 2018, until December 31, 2022:

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PROVIDED, FINALLY, THAT EMPLOYED SENIOR CITIZENS, OR
INDIVIDUALS AGED SIXTY (60) YEARS OLD AND ABOVE, SHALL BE


EXEMPT FROM THE PAYMENT OF INCOME TAX.”

SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,