Republic of the Philippines
Rouse of Representatives
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. _ 6041,

Introduced by Representative EDGAR R. ERICE

EXPLANATORY NOTE

This bill seeks to exempt from payment of income tax two types of senior
citizens: (1) whose gross annual income is below Five Hundred Thousand
Pesos (Php500,000.00) for those below sixty-five (65) years of age; and, (2)
below One Million Pesos (Php1,000,000.00) if they are sixty-five years (65) of
age and above.

The 1987 Constitution mandates the State to endeavor to "make essential
goods, health and other social services available to all the people” and
priority should be given to the elderly. The Constitution further provides that
while the family has the duty to care for its elderly members, the State may
also do so through the just programs of social security.

In line with this constitutional declaration and in recognition of the
contributions that senior citizens have already given to the country, Congress
has passed several laws to grant much needed subsidies and benefits to the
elderlu, ie. Republic Act Nos. 7432, 9257 and 9994, otherwise known as
Senior Citizens Act, Expanded Senior Citizens Act of 2003 and Expanded
Senior Citizens Act of 2010, respectively.

The funds that could be saved by senior citizens from being exempted from
the payment of income taxes could be used to shoulder medical and other
expenses which are inevitable given their advancing age. Furthermore, senior
citizens only constitute 6.8% of the Philippines’ total population and it bears
stressing that only a marginal portion of them are still working after reaching
the age of seniority. In fact, according to a report of the Philippine Statistics
Authority, entitled Employment Situation in January 2015 (Final Results), out
of the total 38.5 million employed Filipinos, only 3.9% are aged 65 and above.
Hence, the impact on government collections arising from foregone income
taxes of senior citizens will not be that significant.


In view thereof, the passage of this bill is urgently sought

oo

sentative



Republic of the Philippines
House of Representatives
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

House BILLNo. 6044

Introduced by Representative EDGAR R. ERICE

AN ACT
INCREASING THE SUBSIDY AND BENEFITS ACCORDED TO SENIOR
CITIZENS BY REPUBLIC ACT NO. 9994, OTHERWISE KNOWN AS “THE
EXPANDED SENIOR CITIZEN'S ACT OF 2010” AND AMENDING SECTIONS 4
AND 5 THEREOF FOR THAT PURPOSE.

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

SECTION 1. Section 4 of Republic Act No. 9994, otherwise known as “Expanded
Senior Citizen's Act of 2010", amending Section 4 of Republic Act No. 7432,
otherwise known as the “Expanded Senior Citizen’s Act of 2003”, is hereby further
amended to read as follows:

"SEC. 4. Privileges for the Senior Citizens. -
The senior citizens shall be entitled to the following
XxX

“(B) EXEMPTION FROM THE PAYMENT OF INDIVIDUAL INCOME
TAXES FOR THOSE AGED BELOW SIXTY-FIVE (65) YEARS AND
WHOSE ANNUAL GROSS INCOME IS BELOW FIVE HUNDRED
THOUSAND PESOS (PHP500,000.00), SENIOR CITIZENS WHOSE
ANNUAL GROSS INCOME IS BELOW ONE MILLION PESOS
(PHP1 ,000,000.00) SHALL ALSO BE EXEMPTED FROM PAYMENT OF
INDIVIDUAL INCOME TAXES, PROVIDED THAT THEY ARE AT LEAST
SIXTY-FIVE (65) YEARS OF AGE IN THE APPLICABLE TAXABLE
PERIOD;

XXX


SECTION 2. Separability Clause. — If any provision of this Act shall be declared
unconstitutional, any other provision not affected thereby shall remain in full force
and effect.

SECTION 3. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary
to or inconsistent with the provision of this Act is hereby repealed, modified or
amended accordingly.

SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,