Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5263

Introduced by AKBAYAN Representative Tomasito S. Villarin

EXPLANATORY NOTE

In enacting the current Tax Code, Congress specified hypothetical personal,
living and family expenses rates to be deducted from a taxpayer's gross or net
income. Congress calculated these amounts to roughly approximate the
minimum levels of subsistence in connection with the personal status and
additional qualified dependents of the taxpayer. Thus, these amounts were
codified in Section 35 (A) in the form of personal exemptions and Section 35
(B) for additional exemption for qualified dependent children under Republic
Act No. 8424, as amended.

In claiming personal exemption, male and female taxpayers are entitled to
same amounts. However, in claiming additional exemption for dependent
children Section 79 (F) of the Tax Code designates the husband as the proper
claimant. The wife can only benefit from the additional exemption if the
husband waives his right to claim in her favor.

This practice is clearly inequitable to working women. There is no clear
in favoring the husband since both child rearing is a shared responsi
between spouses.

‘This bill seeks to remedy this situation by mandating that the claim of
additional exemption shall be equitably divided between spouses.
Furthermore, this bill also requires that in case spouses are de facto
separated, the spouse who has actual custody of the child/children shall be
automatically entitled to claim the additional exemption. Thus, a de facto
separated wife who has actual care of her children need not secure permission
from her husband to avail the exemption.

Notwithstanding the above proposals, the bill also allows spouses to agree on
a different sharing of the additional tax exemption should they desire to do
so.

‘Thus, this bill seeks to promote the equality of men and women in the claim
for additional tax exemption.


TO!

‘OS. VILLARIN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Congress

House Bill No. _5262

Introduced by AKBAYAN Representative Tomasito S. Villarin

AN ACT
AMENDING SECTIONS 35 (B) AND 79 (F) OF REPUBLIC ACT
NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE
NATIONAL INTERNAL REVENUE CODE OF 1997

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

SECTION 1. Section 35 (B) of Republic Act No. 8424, as amended, is hereby
amended to read as follows:

“(B) Additional Exemption for Dependents. - There shall be
allowed an additional exemption of Twenty-five thousand
pesos (P25,000) for each dependent not exceeding four (4).

The additional exemption for dependent shall be claimed
EQUALLY BY EITHER SPOUSE [only one of the spouses] in
the case of married individuals UNLESS ONE OF THEM
WAIVES HIS OR HER RIGHT IN WRITING IN FAVOR OF
THE OTHER SPOUSE.

In the case of legally separated spouses, additional
exemptions may be claimed only by the spouse who has
custody of the child or children:

Provided, That the total amount of additional exemptions that
may be claimed by both shall not exceed the maximum
additional exemptions herein allowed:

PROVIDED, FINALLY, THAT IN CASE THE SPOUSES ARE
SEPARATED DE FACTO, THE SPOUSE WHO HAS ACTUAL
CUSTODY OF THE DEPENDENT SHALL BE ENTITLED TO
THE ADDITIONAL CLAIM FOR THAT PARTICULAR
DEPENDENT UNDER PARAGRAPH 1 OF THIS SECTION,
UNLESS OTHERWISE AGREED BY THE SPOUSES IN
WRITING.


For purposes of this Subsection, a ‘dependent means a
legitimate, illegitimate or legally adopted child chiefly
dependent upon and living with the taxpayer if such
dependent is not more than twenty-one (21) years of age,
unmarried and not gainfully employed or if such dependent,
regardless of age, is incapable of self-support because of
mental or physical defect.”

SEC. 2. Section 79 (F) of Republic Act No. 8424, as amended is
hereby amended to read as follows:

“(F) SPOUSES [Husband and Wife]. - When [a] BOTH
SPOUSES [husband and wife each] are recipient of wages,
whether from the same or from different employers, THE
CLAIMANT/S OF THE ADDITIONAL EXEMPTION WITH
RESPECT TO ANY DEPENDENT CHILDREN SHALL BE IN
ACCORDANCE WITH SECTION 35(B) OF THIS ACT. [shall
be determined on the following bases]:

[(1) The husband shall be deemed the head of the family and
proper claimant of the additional exemption in respect to any
dependent children, unless he explicitly waives his right in
favor of the wife in the withholding exemption certificate.]

[(2) Taxes shall be withheld from the wages of the wife in
accordance with the schedule for zero exemption of the
withholding tax table prescribed in Subsection (D)(2\(d).”

SEC. 3. Implementing Rules and Regulations. ~ The Secretary of Finance,
shall upon the recommendation of the Commissioner of the Internal Revenue,
promulgate the necessary implementing rules and regulations of this Act
within thirty (30) days from its effectivity.

SEC. 4. Separability Clause. — If any provision of this Act is declared invalid
or unconstitutional, other provisions hereof which are not affected thereby
shall continue to be in full force and effect.

SEC.5. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with any provision of this Act are hereby amended
or modified accordingly.

SEC. 6. Effectivity Clause. ~ This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved,