THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
1 
S. No. 571 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
Consistent with the policy of the State to ensure that teaching will attract 
and retain its rightful share of the best available talents through adequate 
remuneration and other means of job satisfaction and fulfillment, this bill aims 
to increase the take home pay of public and private school teachers by granting 
them a special tax deduction. 
With this privilege, it. is hoped that the plight of more than 500,000 
teachers will be improved and that they will be further encouraged to provide 
our youth with quality education. 
In view of the foregoing, earliest approval of this bill is earnestly sought. 
MANUEL B. VIL AR, JR. 7 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 371 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT 
EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO PUBLIC 
AND PFUVATE SCHOOL TEACHERS, INCLUDING THE FACULTY OF PUBLIC AND 
PRIVATE TERTIARY EDUCATIONAL INSTITUTIONS. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
Short Title - This Act shall be referred to as "The Public 
and Private School Teachers' Tax Incentives Act". 
SECTION 2. Statement of Policy - It is hereby declared the policy of the State to 
assign the highest budgetary priority to education and ensure that teaching will 
attract and retain its rightful share of the best available talents through adequate 
remuneration and other means of job satisfaction and fulfillment. 
It is further 
declared a policy and commitment of the State to promote and improve the economic 
status of all public and private school teachers, including the faculty of public and 
private tertiary education institutions, by increasing their take home pay through the 
exemption from tax all allowances and benefits granted them. 
SECTION 3. Exclusion from Gross Incomes - All allowances and benefits granted 
to public and private school teachers, including the faculty of public and private 
tertiary educational institutions, shall not be included in the computation of gross 
income and shall be exempt from taxation under Title 111, Chanter VI of Republic Act 
No. 8424, otherwise known as the "Tax Reform Act of 1997." 
SECTION 4. Exemption from Attachment, Levy and Execution. - All benefits and 
allowances referred to herein shall likewise not be subject to attachment, levy and 
execution. 
SECTION 5. Ru2e.s and Regulations. - The Commissioner of the Bureau of 
Internal Revenue is hereby authorized to promulgate such rules and regulations as 
may be necessary to implement the provisions of this Act. 


2 
SECTION 6. Repealing Clauses - All laws, decrees, executive orders, letters of 
instruction, letters of implementation, rules and regulations, and other issuances 
inconsistent with any provision of this Act are hereby repealed, modified, superseded 
or amended accordingly. 
SECTION 7. Separability Clauses - If any provision of this Act or the application 
of such provision to any person or circumstance is held invalid for any reason, the 
remainder of this Act or the application of such provision to other persons or 
circumstances shall not be affected thereby. 
SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its complete publication in any two (2) newspapers of general circulation. 
Approved,