28 MAY 2014

x PY

Republic of the Philippines ® His
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

16
HOUSE BILL NO. id

Introduced by Honorable MARK A. VILLAR

EXPLANATORY NOTE

Being a parent of a child who has special needs has been described as
complicated, challenging, and frustrating. Financial concems further exacerbate their
situation. With the perceived lack of financial support from the Philippine
goverment, Parents are more inclined to be financially supportive to their children's
needs.

Hence, this bill seeks to address the financial concer of the family having
children with special needs by granting tax deduction for expenses incurred as a
result of the child's therapy, education and treatment.

Children with disabilities have more challenges than those considered regular
and healthy children. Parents need to pay for evaluation and assessment fees,
therapy, special education services offering individualized intervention, assistive
technology or electronic devices, among others, to aid the learning and adaptability
of the children. Ultimately, access to these services and use of technology would
improve the quality of life of the children.

The Department of Education's Special Education Division estimates the cost
for taking care of a child with a disability is at least double compared to regular
children.

A child with a disability is understood to be a child who is intellectually
disabled, has hearing impairments (including deafness), speech or language
impairments, visual impairments, serious emotional disturbance, orthopedic
impairments, autism and traumatic brain injury.

* Quality of life of Parents of Filipino Children with Special Needs, Ivan Neil B. Gomez & Marie Grace Gomez,
Education Quarterly, Vol. 71 Issue 2 July-December 2013


For School Year 2007 to 2008, the number of enrolled children with special
needs in public and private elementary schools stood at 92,429. This translates to a
27.6% increase compared to School Year 2004 to 2005's total of 79,118. Many
children no longer pursue secondary education or stay in elementary schools for an
extended period of time.

This bill aims to help parents and legal guardians provide better support and
special care for a child with special needs by reducing their expenses.
The immediate approval of this bill is earnestly sought.

MARK A. VILLAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

4515

HOUSE BILL NO."

Introduced by Honorable Mark A. Villar

AN ACT
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS
OF CHILDREN WITH SPECIAL NEEDS

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

SECTION 1. Declaration of Policy - It is the policy of the State to promote the
right of every individual to relevant quality education regardless of sex, age, breed,
socio-economic status, physical and mental condition, social or ethnic origin, political
and other affiliation. Further, the State shall promote and maintain equality of access
to education and medical care as well as the enjoyment of benefits of education by
all its citizens.

‘SEC. 2. Definition - For the purposes of this Act, these terms are defined as
follows:

Autism - A developmental disability significantly affecting verbal and nonverbal
communication and social interaction, generally evident before age three (3) that
adversely affects a child's educational performance. Other characteristics often
associated with autism are engagement in repetitive activities and stereotyped
movements, resistance to environmental change or change in daily routines, and
unusual responses to sensory experiences. The term does not apply if a child's
educational performance is adversely affected because the child has an emotional
disturbance.

Deafness - A hearing impairment that is so severe that the child is impaired in
processing linguistic information through hearing, with or without amplification that
adversely affects a child's educational performance.


Emotional Disturbance - A condition exhibiting one or more of the following
characteristics over a long period of time and to a marked degree that adversely
affects a child's educational performance:

A. An inability to learn that cannot be explained by intellectual/sensory or health
factors;

B. An inability to build or maintain satisfactory interpersonal relationships with
peers and teachers;

C. Inappropriate types of behaviors or feelings under normal circumstances;

D. A general pervasive mood of unhappiness or depression;

E. A tendency to develop physical symptoms or fears associated with personal
or school problems.

The term includes schizophrenia. The term does not apply to children who are
socially maladjusted, unless it is determined that they have an emotional
disturbance.

Hearing Impaired - impairment in hearing, whether permanent or fluctuating, that
adversely affects a child's performance.

Intellectually Disabled - Significantly sub-average general intellectual functioning
existing concurrently with deficits in adaptive behavior and manifested during the
developmental period that adversely affects a child's performance.

Orthopedic Impairment - A severe orthopedic impairment that adversely affects a
child's educational performance. The term includes impairments caused by
congenital anomaly (.e.g. club foot, absence of some member), impairments caused
by disease (e.g., poliomyelitis/bone tuberculosis), and impairments from other
causes (e.g. cerebral palsy, amputations, and fractures or bums that cause
contractures).

Qualified Children with Special Needs - means a legitimate, illegitimate or legally
adopted child chiefly dependent and living with the taxpayer. This also covers
children with special needs who are placed under the legal custody of an immediate
family member or relative. The child should not be more than 13 years of age and
must be assessed by the Department of Education's Special Education Division and
a medical professional in order to qualify.

Provided, however, that children who are permanently disabled and who are
unable to fully take care for themselves are qualified no matter how old they are.

This does not cover children considered mentally gifted or fast leamers.

Specific teaming Disability - A disorder in one or more of the basic psychological
processes involved in understanding or in using language, spoken or written, which
may manifest itself in the imperfect ability to listen/ think/speak/read, write, gpell or
do mathematical calculations. Such term includes conditions such as perceptual
disabilities, brain injury, minimal brain dysfunction, dyslexia, and developmental
aphasia.


Speech or Language Impaired - communication disorder such as. stuttering
impaired articulation, language impairment, or a voice impairment that adversely
affects a child's educational performance

Traumatic Brain Injury - An acquired injury to the brain caused by an extemal
physical force, resulting in total or partial functional disability or psychosocial
impairment or both, and that adversely affects a child's educational performance.
The term applies to open or closed head injuries resulting in impairments in one or
more areas, such as cognition, language, memory, attention, reasoning, abstract
thinking, judgment, problem solving, sensory, perceptual and motor’ abilities,
psychosocial behavior physical functions, information processing, and speech. The
term does not apply to brain injuries that are congenital or degenerative or to brain
injuries induced by birth trauma.

Visual Impairment - impairment in vision that, even with correction adversely affects
a child's educational performance. The term includes both partial and sight
blindness.

SEC. 3. Deduction from Taxable Income. - A qualified taxpayer is entitled to a
deduction of P50,000. Expenses that qualify for a deduction are:

+ Tuition for a private school;

+ Therapy;

+ Diagnostic evaluations by a medical professional;

+ Tutoring;

+ Transportation expenses to school or a medical facility;
+ Specialized instructional materials.

The parent or legal guardian must provide more than half of the total financial
support for the child to qualify for the deduction.

SEC. 4. Implementation. - The Bureau of Intemal Revenue in consultation
with the Department of Education's Special Education Division and Department of
Health shall issue such rules and regulations as may be necessary to carry out the
purpose of this Act.

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette and two (2) newspapers with a nationwide
circulation.

Approved,