Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BillNo,_ 8447 7

Introduced by:

Hon. FERDINAND MARTIN G. ROMUALDEZ, Hon. GLORIA MACAPAGAL
ARROYO, Hon. ALETA C. SUAREZ, Hon, DIOSDADO M. ARROYO, Hon. JOSE L.
ATIENZA, JR., Hon. JONATHAN A. DE LA CRUZ, Hon, VICTOR FRANCISCO C.

ORTEGA, Hon, PHILIP A, PICHAY, Hon. LANI MERCADO-REVILLA and Hon.
TOBY M. TIANGCO.

AN ACT
PROVIDING FOR TAX INCENTIVES FOR THE RELIEF AND
REHABILITATION OF DEVASTATED COMMUNITIES COVERED BY
A STATE OF CALAMITY

EXPLAN,

‘The Philippines is one of the countries that is often ravaged and devastated by strong typhoons.
‘Around 19 tropical storms enter the Philippine Area of Responsibility in a typical year and, of
these, usually 6 to 9 make landfall.

Notwithstanding all the disaster preparation and coordination plans there were still significant
losses of life, injuries, and damage to property when Typhoon Yolanda (International Code
Name: Haiyan), considered as the world’s strongest typhoon ever recorded, hit Philippine
Territory. Thousands of people perished from thirty six provinces; and damage to business,
property and agriculture were in such magnitude that economic activities were placed on

standstill.

Last November 11, 2013, President Benigno Simeon C. Aquino III issued Presidential
Proclamation No. 682 declaring our country in a national state of emergency because of the

devastation by typhoon Yolanda.


The National Disaster Risk Reduction and Management Council statistics cannot
approximate the horrible experiences that the people in the Visaya’s, Southern part of Luzon

and Northern part of Mindanao went through.

Since the government cannot do it alone, we must encourage private sector

participation to help the victims of the of calamity.

‘The 2013 General Appropriations Act would show that the budget is not going to be enough
to cope with the reconstruction and rehabilitation needs, The national government must
encourage the participation of the private sector. It becomes imperative therefore, that

Congress should introduce measures in line with this policy thrust.

Immediate passage of this bill is urgently sought.

RDINANI L G. ROMUALDEZ GLORIA MACAPAGAL ARROYO.
st District, Leyte 2nd District, Pampanga

/ 2

EGA ALETA C. SUAREZ
fd District, Auezon

VICTOR FRANCISCO C. Off
AST District, La Union

JONATHAN A. DE LA CRUZ

Partylist ABAKADA Partylist

MERCADO- REVILLA DIOSDADO M. ARROYO
2nd District, Cavite 2nd Distfict, Camarines Sur

)
iM TOBY M. TIANGCO—S

ad istrict, Surigao del Sur Lone District, Navotas City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No, _ 8.4477

Introduced by
Hon, FERDINAND MARTIN G. ROMUALDEZ, Hon. GLORIA MACAPAGAL
ARROYO, Hon. ALETA C. SUAREZ, Hon, DIOSDADO M. ARROYO, Hon, JOSE L.
‘ATIENZA, JR., Hon. JONATHAN A. DE LA CRUZ, Hon, VICTOR FRANCISCO C.
ORTEGA, Hon, PHILIP A. PICHAY, Hon, LANI MERCADO-REVILLA and Hon,
TOBY M. TIANGCO.

AN ACT
PROVIDING FOR TAX INCENTIVES FOR THE RELIEF AND
REHABILITATION OF DEVASTATED COMMUNITIES COVERED
BY A STATE OF CALAMITY

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

Section 1. Declaration of Policy. — It is the policy of the State to encourage the
participation of every member of the society towards the rehabilitation of devastated
communities during natural disasters through voluntary sharing of resources.

Section, 2. Tax Holiday For Donors - Notwithstanding any provision of law to the
contrary, there will be no imposition of the Donor’s Tax for all monetary contributions and
the equivalent monetary value of items donated, granted or bestowed for humanitarian and
relief purposes during natural disasters; provided, that such donations, grants, endowments or
contributions were used actually, directly and exclusively for the primary purpose of relief
operations during such disasters;

Section 3. Tax Incentives occasioned by Calamitous Events-


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a.) For purely compensation income earners - Notwithstanding Section 34
(first paragraph) of the National Internal Revenue Code (as amended), donations made by
purely compensation income eamers to the government or to charitable institutions,
occasioned by calamitous events, shall be treated as allowable deductions.

b.) For Juridical Entities - Donations made by juridical entities to the
government or charitable institutions, occasioned by calamitous events, shall be deductible in
full.

Section 4. — Preferential rates for Trailblazers- Sole proprietorships, partnerships, or
corporations which immediately resumes or initiates new businesses within the stricken areas
shall be given preferential rates with regard to business fees and taxes to help in the
rehabilitation program of the government.

Section 5. Implementing Rules and Regulations. ~ The Secretary of Finance, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate the necessary
Rules and Regulations to implement the provisions of this Act within thirty (30) days from its
effectivity.

Section 6. Separability Clause, If any provision of this Act is declared
unconstitutional or invalid, the provisions not affected thereby shall continues to be in full
force and effect.

Section 7. Repealing Clause. All laws, republic acts, presidential decrees, orders,
rules and regulations or other issuance of government agencies inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

Section 8. Effectivity Clause. This Act shall take effect fifteen days after its

publication in the Official Gazette.

Approved.