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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                 House Bill No. 3968
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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EXPLANATORY NOTE 
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Motorcycles have become indispensable to Filipino mobility, especially for first- and last-
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mile connectivity. Yet their status in law has remained uncertain, exposing both riders 
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and passengers to risk and leaving regulators without adequate oversight. 
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This bill recognizes motorcycles-for-hire as public utility vehicles subject to common 
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carrier obligations. It mandates safety standards, training, insurance, and accreditation 
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of operators, while ensuring route planning and regulation consistent with local and 
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national transport plans. 
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In so doing, the State affirms that innovation must not come at the expense of safety, and 
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that the law must embrace progress while upholding the public good. 
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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
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REP. JESUS MANUEL “BONG” C. SUNTAY 
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August 26, 2025
8:00 am


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                 House Bill No. 3968
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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AN ACT ALLOWING AND REGULATING THE USE OF MOTORCYCLES 
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AS PUBLIC UTILITY VEHICLES, AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
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Section 1. Short Title. – This Act shall be known as the “Motorcycle-for-Hire Act.” 
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Sec. 2. Declaration of Policy. – The State recognizes the importance of 
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transportation in economic development. The recent innovations in technology have 
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allowed the riding public access to alternative modes of public conveyance such as 
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motorcycles-for-hire, which have emerged as a reliable and accessible mode of 
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transportation. However, despite its promise of convenience and fast service, 
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motorcycles-for-hire must be regulated to ensure that the interest of the general public is 
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protected. Thus, the State shall allow the regulated operation of motorcycles-for-hire to 
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provide the public with an alternative mode of public transportation that is safe, secure, 
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and economical. Towards this end, the State shall establish mechanisms and guidelines 
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in regulating all operational aspects of motorcycles-for-hire. 
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Sec. 3. Definition of Terms. – As used in this Act: 
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(a)
Biker refers to the driver of a motorcycle-for-hire;
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(b)
Certificate of Public Convenience or CPC refers to the authority issued by the
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Land Transportation Franchising and Regulatory Board (LTFRB) to Motorcycle Taxi 
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Operator (MTO) in order that they may authorize bikers to operate motorcycles-for-hire 
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or to bikers to operate motorcycles-for-hire; 
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(c) 
Customer or user refers to a natural person requesting for services of a 
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motorcycle-for-hire on a digital platform or through other means; 
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(d) Digital platform refers to an information and communications technology-
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enabled mechanism that connects and integrates providers and users in online 
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environments where services are requested, developed, and sold and data is generated 
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and exchanged; 
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(e) 
Motorcycle refers to any two (2)-wheeled motor vehicle without appendages; 
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(f) 
Motorcycle Taxi Operator or MTO refers to any natural or juridical person that 
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makes available pre-arranged transportation services of motorcycles-for-hire, whether on 
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a digital platform or through other means, and connects its customers or users with bikers 
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to facilitate the creation a contract of carriage for compensation; 
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(g) 
Motorcycle-for-hire refers to a motorcycle, duly registered as such under this 
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Act, used in the provision of services offered to the public for the carriage of passengers 
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on a for hire basis. A motorcycle-for-hire shall be considered a public utility vehicle and 
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its operation a public utility;  
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(h) Motorcycle-for-hire Operator’s Permit or MOP refers to the authority issued 
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to bikers by LGUs in order that they may operate a motorcycle-for-hire; 
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(i) 
Multi-homing refers to an approach where a particular biker may be accredited 
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by more than one MTO, allowing such biker to utilize the services of more than one MTO 
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in the provision of transportation services; and 
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(j) 
Passenger refers to a natural person being transported from point to point by 
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a biker using a motorcycle-for-hire. 
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Sec. 4. Scope and Application. – This Act shall apply to all aspects of the operation 
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of motorcycles used as a common carrier for the transportation of passengers.  
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Sec. 5. Recognition of Motorcycles-for-Hire as a Viable Mode of Public 
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Transportation. – Motorcycles-for-hire shall be recognized as a viable mode of public 
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transportation and, for this purpose, shall be included as a mode of transport in the Local 
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Public Transport Route Plan (LPTRP) to be developed by LGUs and approved by the 
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DOTr and LTFRB as well as in separate manuals or guidelines issued by LGUs on any 
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public transportation plans concerning any province, city or municipality based on local 
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mobility requirements.  
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Motorcycles-for-hire shall also be included in all plans and programs for route 
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rationalization and traffic management, both at the local and national level.  
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Sec. 6. Motorcycles-For-Hire as Common Carriers. – The operation of motorcycles-
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for-hire is imbued with public interest. As such, the same shall be governed by the 
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applicable provisions of Republic Act No. 386, otherwise known as the “Civil Code of the 
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Philippines,” and other pertinent laws, rules, and regulations on common carriers, 
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particularly on the required degree of diligence to be observed by bikers in the course of 
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transporting passengers and on the presumption of culpability in case of death or injuries 
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to passengers.  
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Sec. 7. Registration of Motorcycles-For-Hire.  – A motorcycle intended to be used 
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as a motorcycle-for-hire must be duly registered with the Land Transportation Office 
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(LTO) in accordance with the requirements set forth in Section 11 of this Act. The LTO 
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shall ensure the roadworthiness of all motorcycles-for-hire before their registration, or 
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any renewal thereof. 
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Sec. 8. Standards and Specifications of Motorcycles-For-Hire. – The DOTr, upon 
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the recommendation of the LTO, shall prescribe standards and specifications of 
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motorcycles that may be allowed to operate as motorcycles-for-hire, taking into 
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consideration the safety of the passengers and bikers.  
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No modifications shall be made on any motorcycles-for-hire except for the 
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installation of the appropriate accessories, such as a step board, footrest, speed limiter or 
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monitoring devices, in accordance with the standards and specifications to be prescribed 
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by the DOTr.  
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Sec. 9. Accreditation Requirements for MTOs. – An individual or juridical entity 
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duly registered with the with the appropriate government agencies may be accredited by 
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the LTFRB to operate as an MTO.  
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MTOs must comply with the nationality requirements under applicable laws: 
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Provided, That, where permitted, foreign nationals shall not be allowed to directly or 
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indirectly own more than forty percent (40%) of the capital of any MTOs unless the 
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country of such foreign nationals accords reciprocity to Philippine nationals as may be 
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provided by foreign law, treaty or international agreement. 
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The accreditation shall be valid for five (5) years and may be renewed: Provided, 
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That an MTO applying for renewal shall have maintained an average safety rating of at 
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least ninety-five percent (95%) as certified by an independent auditor for the validity 
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period of its previous accreditation.  
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Sec. 10. Power to Regulate and Grant Permits to Operate Motorcycles-for-Hire. – 
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The power to regulate and grant permits to operate motorcycles-for-hire shall be as 
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follows:  
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(a) 
Metropolitan and Highly Urbanized Areas. – In metropolitan and highly 
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urbanized areas, the authority to regulate and grant permits for the operation of 
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motorcycles-for-hire is vested in the LTFRB through the issuance of a CPC to an MTO or 
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an individual biker that fulfills the requirements under Sections 11(a) and (b), 
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respectively. The LTFRB shall set forth in the CPC the terms and conditions applicable to 
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the operation of motorcycles-for-hire.  
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A CPC granted to an MTO shall allow an MTO’s authorized bikers to operate 
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motorcycle-for-hire services nationwide while a CPC granted to an individual biker shall 
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authorize such biker to operate a motorcycle-for-hire nationwide or within several service 
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areas. An MTO’s authorized bikers and an individual biker who has been granted a CPC 
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with nationwide coverage may no longer apply for MOPs under Section 9(b). All CPCs 
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shall have a validity period of two (2) years and may be renewed consecutively for the 
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same period.   
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(b) Other Areas Apart from Metropolitan and Highly Urbanized Areas. – The 
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authority to regulate and grant permits for the operation of motorcycles-for-hire in other 
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areas that are not considered metropolitan or highly urbanized areas shall be vested in 
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local government units (LGUs) through the issuance of an MOP to individual bikers that 
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fulfill the requirements under Section 11(b). For routes within their jurisdictions, the 
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MOP shall be issued by the city or municipality concerned. For routes traversing two (2) 
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or more cities or municipalities, the MOP shall be issued by the province of the component 
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LGUs. In cases where a route traverses two or more cities or municipalities belonging to 
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two or more provinces, the MOP may be obtained from any of the provinces concerned: 
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Provided, That the consent of the other province or provinces must be secured prior to 
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the operation of the motorcycle-for-hire.  
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An MOP is only valid for the operation of a motorcycle-for-hire within the 
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designated route. An individual biker may be issued several MOPs covering different 
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service areas. 
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MOPs shall be valid for a period of two (2) years and may be renewed consecutively 
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for the same period.   
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Sec. 11. Requirements for the Grant of a CPC or MOP. – A CPC may be granted to 
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an MTO or to an individual biker. An MOP may only be granted to an individual biker.  
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(a) 
A CPC with nationwide coverage shall only be issued to an MTO upon 
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submission of proof that the following requirements have been met:  
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(i) 
minimum capital of at least Twenty Million Philippine Pesos 
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(PHP20,000,000.00); 
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(ii) 
capability to evaluate and determine the skills and competence of bikers 
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through an established training center duly accredited by TESDA;  
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(iii) a digital platform where the services of motorcycles-for-hire can be 
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booked with a reporting feature through which users can report accidents or lodge 
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complaints; and 
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(iv) an established accident quick response system. 
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An MTO may authorize individuals to operate motorcycles-for-hire under the 
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MTO’s CPC subject to their submission of the requirements set out in subsection (b) 
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below: Provided, That a non-professional driver’s license shall be sufficient for 
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purposes of this authorization.  
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(b) A CPC with several service areas or nationwide coverage or MOP shall only be 
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issued to a biker upon submission of the following requirements: 
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(i) 
proof of Filipino citizenship; 
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(ii) 
valid professional driver’s license for the operation of motorcycles;  
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(iii) for areas with a existing MTO, proof of registration with an MTO and 
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completion of the MTO’s training course that covers, at the minimum, pillion-
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ferrying skills, traffic rules and regulations, and customer relations training and 
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includes written and practical tests as components;  
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(iv) for areas without an existing MTO, a certification issued by any TESDA-
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accredited institution confirming that the biker has undergone the necessary safety 
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and skills training for the operation of a motorcycle-for-hire;  
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(v) 
Certificate of Registration of the motorcycle-for-hire duly issued by the 
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LTO; 
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(vi) insurance coverage for the death of or injuries suffered by the biker, 
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passenger or any third party or damage to property by reason or on occasion of the 
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operation of a motorcycle-for-hire; and 
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(vii) Taxpayer Identification Number issued by the BIR. 
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Sec. 12. Fees for the Grant of a CPC and MOP. – The LTFRB or the issuing LGUs, 
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as applicable, are authorized to charge and collect from any applicant CPC or MOP fees 
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as reimbursement of its expenses in the authorization, supervision, and regulation of 
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motorcycles-for-hire. Such fees shall be determined by the LTFRB, subject to the approval 
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of the Department of Transportation (DOTr), or the issuing LGUs. 
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Sec. 13. Conditions for the Maintenance of a CPC or MOP. – An MTO must maintain 
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the requirements set out in subsections (ii) to (iv) of Section 11(a) for the duration of the 
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validity of its CPC. A biker must maintain the requirements set out in Section 11(b) for the 
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duration of the validity of their CPC or MOP. 
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 The LTO shall promulgate the necessary guidelines setting forth requirements for 
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registration of bikers with MTOs.  
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Bikers that are not registered with an MTO shall ensure that the certifications issued 
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to them by the TESDA-accredited institution are valid or renewed throughout the 
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duration of the validity of their CPC or MOP and that they undergo continuing safety and 
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skills training with a curriculum duly certified by TESDA.   
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Sec. 14. Effect of Non-Use of a CPC or MOP. – If an MTO or biker fails to use a CPC 
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or MOP within one (1) year from its issuance, the LTFRB or the relevant LGU may, after 
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due notice and hearing, order the cancellation or suspension of the CPC or MOP, 
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Provided, That such MTO or biker whose CPC or MOP was ordered cancelled shall not be 
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precluded from applying for a new CPC or MOP in accordance with the requirements 
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provided in this Act.   
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Sec. 15. Operation of Motorcycles-For-Hire. – A biker who is authorized to operate 
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as a motorcycle-for-hire pursuant to an MTO’s CPC may only do so through the MTO’s 
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digital platform. The MTO shall ensure that such bikers are not holders of their own CPC 
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or MOP and they are not authorized to operate as a motorcycle-for-hire pursuant to 
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another MTO’s CPC. The LTFRB shall work with MTOs to create a database of bikers that 
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have been authorized by MTOs to operate as motorcycles-for-hire under their CPCs. The 
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database shall be maintained by the LTFRB and shall be accessible to MTOs for the 
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limited purpose of verifying if any biker who applies for authorization to operate as a 
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motorcycle-for-hire under their CPC has not been issued their own CPC or MOP and has 
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not been authorized to operate as a motorcycle-for-hire by another MTO.  
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A biker who is the holder of a CPC or MOP shall be allowed to adopt a multi-homing 
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approach within the service areas designated in their CPC or MOP and MTOs are 
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prohibited from refusing a biker’s application for accreditation solely on the ground that 
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such biker is accredited by another MTO. 
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Except for private use, any operation of motorcycles-for-hire outside of an MTO in 
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areas with accredited MTOs shall be considered colorum and, therefore, illegal. 
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Sec. 16. Fare Setting. – The fares, including surcharges and other transportation 
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fees, that may be charged by bikers shall be as follows:  
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(a) 
Fares charged by bikers for the provision of motorcycle-for-hire services within 
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metropolitan and highly urbanized areas must be in accordance with the fare structure 
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issued and within the parameters determined and prescribed by the LTFRB, in 
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consultation with stakeholders of the motorcycle taxi industry, including bikers and 
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MTOs, and subject to the approval of the DOTr;  
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(b) Fares charged by bikers for the provision of motorcycle-for-hire services in 
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other areas must be in accordance with the fare structure issued and within the 
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parameters determined and prescribed by the relevant LGUs.  
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The fare structure to be implemented by the LTFRB and the LGUs must take into 
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consideration supply and demand components and shall allow dynamic pricing on 
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account of market variations based on location and time. The fare structure and 
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parameters for determining the applicable fares, including the minimum fee that may be 
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charged by holders of CPCs issued by the LTFRB, shall be periodically reviewed by the 
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LTFRB and the LGUs. 
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Sec. 17. Processing of Personal Data. – Any processing, collection, use and/or 
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storage of personal information and sensitive personal information involved in the 
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operations of motorcycles-for-hire, registration/accreditation of bikers, bookings, and 
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other activities under this Act shall be done in accordance with the provisions of Republic 
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Act No. 10173, otherwise known as the “Data Privacy Act of 2012.” 
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Sec. 18. Liabilities for Death, Injuries or Damage to Property. – The biker and the 
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MTO that facilitated the transportation service at the time when the death, injury or 
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damage to persons or property occurred in the course of the operation of a motorcycle-
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for-hire shall be jointly and solidarily liable for civil liabilities arising from such death, 
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injury or damage, with rights of subrogation against any party at fault: Provided, That the 
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liability of the MTO shall not exceed the amount of the insurance coverage of the biker; 
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Provided further, That the following provision on civil liability is without prejudice to the 
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imposition of appropriate criminal and/or administrative liabilities on the driver at fault.    
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Sec. 19. Accident Quick Response System. – MTOs shall establish and maintain a 
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quick response team to provide immediate medical care or bring any person injured by a 
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motorcycle-for-hire providing transportation services facilitated by such MTOs to the 
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nearest hospital or medical facility able to provide sufficient necessary care. When a 
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person injured by the operation of a motorcycle-for-hire is prevented from receiving 
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medical care due to financial constraints, the MTO shall advance a reasonable amount 
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necessary for the provision of such medical care and, if necessary, the admission of such 
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injured person to a hospital or medical facility up to the maximum amount of the 
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insurance coverage of the biker. 
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A function that will allow the biker or passenger to alert the quick response team 
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during an emergency or road incident shall be a required feature of an MTO’s digital 
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platform. An MTO shall implement a similar system that will allow a biker or passenger 
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to alert their quick response team during an emergency or road crash.  
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Sec. 20. Reportorial Requirements. – MTO shall submit quarterly reports 
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containing rides, safety, and accident data to the LTFRB, which data shall be   utilized in 
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regulating and improving overall traffic management and local mobility conditions and 
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to gain industry-wide insights on MTO operations.  
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The LTFRB shall ensure that reports are submitted through an online facility 
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equipped with a data aggregation tool to ensure that the data accessible to the LTFRB, 
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any other governmental authority, and to the general public is consolidated and 
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anonymized to prevent association of any data with any specific MTO.  
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The LTFRB may not compel MTOs to submit proprietary or confidential data on its 
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business operations or strategies, such as but not limited to trade secrets, any financial 
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data not otherwise accessible to the public, and technical information such as systems, 
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source codes, and software.  
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Sec. 21. Confidentiality. – The LTO, LTFRB, DOTr, and other relevant government 
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agencies shall not disclose any proprietary and confidential data unless prior consent of 
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the owner of such data has been obtained by the requesting party. 
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Sec. 22. Enforcement. – Unless otherwise provided under this Act, the LTFRB shall 
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have original and primary jurisdiction over the enforcement and implementation of the 
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provisions of this Act, and its implementing rules and regulations, and shall exercise the 
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following powers and functions: 
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(a) 
Conduct administrative proceedings for any violation of this Act and its 
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implementing rules, upon its own initiative, a verified complaint in writing from any 
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interested party or referral by any concerned regulatory agency; 
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(b) Upon finding after notice and hearing, based on substantial evidence, that an 
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MTO or biker has violated any provisions of this Act or its implementing rules, to stop or 
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redress the same by applying penalties prescribed under this Act, including the revocation 
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of CPCs and MOPs, and the imposition of fines, under such reasonable parameters as 
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shall be prescribed by the rules and regulations implementing this Act; 
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(c) 
Charge reasonable fees to defray the administrative costs of services rendered; 
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and  
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(d) Monitor compliance by persons or entities with the provisions of this Act. 
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LGUs shall have original and primary jurisdiction to resolve issues or complaints in 
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relation to violations of the terms and conditions of an MOP or for non-compliance with 
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the fare matrix prescribed by LGUs for the provision of motorcycle-for-hire services.  
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For the avoidance of doubt, MTOs shall not be precluded from exercising the power 
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to impose sanctions such as suspension or blacklisting of bikers on account of violation of 
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internal rules made known to them, acts detrimental to safety and security, and other 
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reasonable or valid grounds. 
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Sec. 23. Protection Against Anti-Competitive Conduct.  – The LTFRB shall protect 
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MTOs, bikers, and the riding public from monopolistic conduct, anti-competitive 
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conduct, and unfair trade practices, and shall exercise all powers and functions consistent 
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with this Act, to ensure such protection. 
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(a) 
The following acts by MTOs shall be prohibited under this Act:  
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(i) 
Consummating a merger or acquisition which will give rise to a change in 
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control of the MTO without securing the prior endorsement of the DOTr. This 
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requirement shall be separate from and in addition to the notification requirements 
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under Republic Act No. 10667, otherwise known as the “Philippine Competition 
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Act.” 
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(ii) 
Engaging in any anti-competitive conduct that has the object or effect of 
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substantially preventing, restricting or lessening competition in the market for 
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motorcycle-for-hire services. 
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(iii) Leveraging network effects in a separate market to gain undue advantage 
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or dominance in the market for motorcycle-for-hire services. Network effects arise 
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when the value of a product or service increases the more people use such product 
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or service. In markets that depend on two or more user groups, network effects occur 
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when the number of users in one group affects the value derived by users of the other 
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group from the product or service.  
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(iv) Using dominance in a separate market to gain advantage in the market 
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for motorcycle-for-hire services. There is a presumption of dominance if the market 
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share of an MTO in the separate market is at least fifty percent (50%). 
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(b) The following acts committed by MTOs shall give rise to a prima facie 
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presumption of anti-competitive conduct:  
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(i) 
When an MTO that operates a digital platform that has allowed it to 
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accumulate a considerable database of users and ready supply of bikers enters the 
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market for motorcycle-for-hire services;  
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(ii) 
Owning or operating, whether directly or indirectly, more than one MTO 
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offering motorcycle-for-hire services;  
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(iii) Refusing to accept or denying a biker’s application for registration solely 
25 
on the ground that such biker is registered with another MTO, unless such biker is 
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operating as a motorcycle-for-hire under another MTO’s CPC; 
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(iv) Implementing incentive or other programs or loyalty-rewarding schemes 
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that have the object or effect of inducing bikers or customers to utilize the services 
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of an MTO exclusively or of several MTOs owned or operated, whether directly or 
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indirectly, by the same persons or entity;  
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(v) 
Offering benefits, products or services to bikers intended to help them 
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with their needs, including but not limited to financial products and services such 
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as low-interest business loans and bespoke insurance plans, the enjoyment or 
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utilization of which is subject to a condition prohibiting bikers from using the 
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services of a different MTO that is not owned or operated, whether directly or 
5 
indirectly, by the same persons or entity that owns or operates, whether directly or 
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indirectly, the offering MTO; 
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(vi) Charging fares below the minimum fee provided in Section 16(a); and 
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(vii) Any other conduct that is similar or analogous to the above described 
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acts. 
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Sec. 24. Prohibited Acts. –  The following acts shall be unlawful and punishable 
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under Section 25 of this Act: 
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(a) 
Of MTOs: 
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(i) 
Operating as an MTO without a valid accreditation;  
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(ii) 
Authorizing bikers to operate as a motorcycle-for-hire without a 
15 
valid CPC or MOP, unless such authorization is granted pursuant to the MTO’s 
16 
CPC; 
17 
(iii) Refusing or denying a biker’s application for registration solely on 
18 
the ground that such biker is registered with another MTO;  
19 
(iv) Charging any fares, surcharges or other transportation fees not in 
20 
accordance with the fare structure issued and within the parameters 
21 
determined and prescribed by the LTFRB or relevant LGU;  
22 
(v) 
Failure to submit reportorial requirements to the LTFRB; and 
23 
(vi) Failure to comply with any requirement for the maintenance of its 
24 
accreditation and/or CPC under this Act or as prescribed in the implementing 
25 
rules and regulations. 
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(b) Of bikers: 
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(i) 
Operating as a biker without a valid authorization from an MTO 
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pursuant to the MTO’s CPC, a CPC or an MOP; 
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(ii) 
Charging any fares, surcharges or other transportation fees not in 
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accordance with the fare structure issued and within the parameters 
2 
determined and prescribed by the LTFRB or relevant LGU; and 
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(iii) Failure to comply with any requirement for the maintenance of its 
4 
authorization, CPC or MOP under this Act or as prescribed in the 
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implementing rules and regulations. 
6 
Sec. 25. Penalties. – The LTFRB may impose a fine of not less than One million 
7 
Philippine Pesos (PHP1,000,000.00) but not more than Ten million Philippine Pesos 
8 
(PHP10,000,000.00) upon any MTO that has committed any of the prohibited acts under 
9 
Section 24 of this Act. A biker found liable for any of the prohibited acts under Section 24 
10 
of this Act shall be blacklisted from operating motorcycles-for-hire.  
11 
In addition to the foregoing penalties, any biker who operates a motorcycle-for-hire 
12 
in violation of traffic rules and regulations, carrying capacity, and licensing requirements 
13 
shall suffer the appropriate penalty imposed under the applicable law, ordinance, rule or 
14 
regulation for such violation. The LTO shall impose the appropriate penalty on an erring 
15 
biker commensurate to the gravity of the offense and frequency of commission.  
16 
Sec. 26. Taxation of MTOs. – The gross remittances of MTOs to bikers for services 
17 
sold through their digital platforms or through other means used to connect such bikers 
18 
with customers or users shall not form part of the taxable income of the MTO and shall 
19 
not be subject to income tax or withholding tax on the part of the MTO. The term gross 
20 
remittance shall refer to the total amount of the value of the services of a biker net of any 
21 
commissions or service fees due to and deducted by the MTO that is collected by the MTO 
22 
on behalf of such biker, regardless of whether the payment for the services is in cash or 
23 
made through electronic payment channels, and remitted by the MTO to the biker. An 
24 
MTO shall be liable for value-added tax only for its commissions or service fees.  
25 
Sec. 27. Incentives. – The following incentives shall be made available to MTOs:   
26 
(a) 
Income Tax Holiday. – In order to promote the expansion of transportation 
27 
services, pioneer MTOs shall be granted an exemption from payment of income tax for a 
28 
period of five (5) consecutive years from the effectivity of this Act and non-pioneer MTOs 
29 
shall be granted an exemption from payment of income tax for a period of three (3) years 
30 
from the date of their registration. A pioneer MTO refers to operators that were accredited 
31 


 
 
under the pilot program for motorcycle taxis before 2020. The period for exemption may 
1 
be extended for an additional period of two (2) years, contingent upon meeting 
2 
performance benchmarks related to service quality, safety, and environmental 
3 
compliance, as may be prescribed by the LTFRB. 
4 
(b) Zero-Rated Value-Added Tax on Services. – Services provided by registered 
5 
MTOs shall be subject to zero percent (0%) value-added tax.  
6 
(c) 
Regional Development Incentives. – MTOs that establish operations in rural 
7 
and less-developed areas, including but not limited to third-class municipalities and 
8 
mountainous regions, designated by the National Economic and Development Authority 
9 
upon the recommendation of the Department of the Interior and Local Government, shall 
10 
receive extended tax holidays, infrastructure development grants, and employment 
11 
subsidies.  
12 
Sec. 28. Income Tax Rates for Bikers. – For a period of two (2) consecutive years 
13 
from the effectivity of this Act, bikers shall enjoy a preferential tax rate of five percent 
14 
(5%) on their gross income in excess of Three Hundred Fifty Thousand Pesos 
15 
(PhP350,000.00) derived from their operations as a motorcycle-for-hire: Provided, That 
16 
their gross income does not exceed the value-added tax threshold provided in Section 
17 
109(BB) of Republic Act No. 8424, otherwise known as the “National Internal Revenue 
18 
Code of 1997,” as amended.  Upon the expiration of the two (2)-year period, bikers shall 
19 
be subject to the income tax rates set out in Section 24 of the National Internal Revenue 
20 
Code of 1997.  
21 
Sec. 29. Exemption of Technology Professionals from Income Tax. – To incentivize 
22 
recruitment and retention of skilled technology professionals in recognition of the 
23 
importance of fostering growth and innovation in the technology sector and in support of 
24 
technology entrepreneurship in the country, technology professionals, including but not 
25 
limited to software developers, engineers, and IT specialists, shall be exempt from the 
26 
payment of income tax for a period of five (5) consecutive years from the effectivity of this 
27 
Act. This exemption shall apply only to compensation income and shall not extend to 
28 
other sources of income. 
29 
In order to qualify for the exemption, the technology professional must be a regular 
30 
full-time employee and hired to work in a position directly related to technology or 
31 
essential digital platform operations.  
32 


 
 
MTOs employing technology professionals benefitting from the exemption shall be 
1 
required to report the employment status and aggregate income information of their 
2 
technology professionals to the BIR on an annual basis. Any changes in employment 
3 
status or employing MTO must also be reported by the MTO and technology professionals 
4 
to the BIR. 
5 
 
Sec. 30. Appropriations. – The amount needed for the initial implementation of this 
6 
Act shall be taken from the current year’s appropriation of the LTFRB. Thereafter, such 
7 
sums as may be necessary for its continued implementation shall be included in the 
8 
annual General Appropriations Act. 
9 
Sec. 31. Transitory Provision. – In order to provide a smooth transition in the full 
10 
implementation of this Act, operators that are accredited under the pilot program for 
11 
motorcycle taxis before 2020 shall be deemed to have been accredited as an MTO under 
12 
Section 9 of this Act and shall be issued CPCs pursuant to Section 11(a) of this Act. Bikers 
13 
registered with such MTOs shall be authorized to operate as motorcycles-for-hire under 
14 
the MTO’s CPC.  
15 
Sec. 32. Implementing Rules and Regulations. – The DOTr, in coordination with 
16 
the LTFRB, LTO, BIR, TESDA, Department of the Interior and Local Government, 
17 
Metropolitan Manila Development Authority, and Philippine National Police-Highway 
18 
Patrol Group, and in consultation with stakeholders, shall within ninety (90) days from 
19 
the effectivity of this Act shall promulgate the necessary rules and regulations to carry out 
20 
the implementation of this Act. 
21 
Sec. 33. Separability Clause. – If for any reason any clause, sentence, section or part 
22 
of this Act is declared invalid or unconstitutional, the remaining portions of this Act not 
23 
otherwise affected shall remain valid and subsisting. 
24 
Sec. 34. Amendatory and Repealing Clause. – The specific provisions of Republic 
25 
Act No. 4136 that are inconsistent with this Act are hereby amended or repealed 
26 
accordingly.  
27 
All provisions of laws, decrees, executive orders, presidential issuances, and other 
28 
administrative rules and regulations, or parts thereof, which are incompatible or 
29 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
30 
accordingly.  
31 


 
 
Sec. 35. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
1 
in the Official Gazette or in a newspaper of general circulation.  
2 
 
3 
Approved, 
4