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Republic of the Philippines
HOUSE OF REPRESENTATIVES |
Batasan Hills, Quezon City \\

EIGHTEENTH CONGRESS
First Regular Session

225

HOUSE BILL No.

Introduced by
‘ACT Teachers Party-List Rep. FRANCE L. CASTRO,
BAYAN MUNA Party-List Rep. CARLOS ISAGANI T. ZARATE,
Rep. FERDINAND GAITE and Rep. EUFEMIA C. CULLAMAT,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. SARAH JANE I. ELAGO

AN ACT
EXEMPTING FROM INCOME TAXATION ALL AMOUNTS GRANTED TO PERSONS RENDERING
ELECTION SERVICE FOR LOCAL AND NATIONAL ELECTIONS

EXPLANATORY NOTE

This bill seeks to exempt from income tax the compensation received by poll workers
in national and local elections under the Election Service Reform Act or Republic Act 10756.

The ESRA significantly increased the honoraria, allowances, and other compensation
of volunteers for election service, most of whom are still public school teachers who sit as
members of the Boards of Election Inspectors. However, the law is silent as to the tax
treatment of such compensation.

While there should be no change in the tax treatment of the honoraria, and other
compensation for election service—which have never been subjected to income tax prior to
the passage of the ESRA and the 2018 Barangay and Sangguniang Elections—recent rules
and regulations of the Bureau of Internal Revenue reversed the situation. It considered the
election compensation as income and thus taxed the same as such.

This destroys the spirit and intent of the ESRA, which is to compensate the hardships
of persons rendering election service. They must therefore enjoy the compensation in full
and not bear additional burdens. It should be noted that volunteers for election service
exhaust their honoraria and allowances for travel, food, and other expenses before, during,
and even after election day because they are required to attend the trainings, deliver the
election paraphernalia to and from the COMELEC offices and precincts, and perform other
election-related tasks. They are even forced to augment whatever they get from COMELEC
by spending their personal funds.

Hence, there is an urgent need to enact this bill to set straight the BIR rules and
regulations as regards compensation for election service and to expressly exempt from
income taxation all amounts granted to persons rendering election service for local and
national elections.


Approval of this bill is earnestly sought.

Rep. CARLOS Tus Biches T. ZARATE . FERDINAND GAITE
BAYAN MUNA Party-List BAYAN MUNA Party-List
nnn
Rep. EUFEMIA C. CULLAMAT Pp. ; ARLENE D. BROSAS
BAYAN MUNA Party-List

GABRIELA Women’s Party

(NE |. ELAGO
Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

225

HOUSE BILL No. _“"*

Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
BAYAN MUNA Party-List Rep. CARLOS ISAGANI T. ZARATE,
Rep. FERDINAND GAITE and Rep. EUFEMIA C. CULLAMAT,
‘GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. SARAH JANE I. ELAGO

AN ACT
EXEMPTING FROM INCOME TAXATION ALL AMOUNTS GRANTED TO PERSONS
RENDERING ELECTION SERVICE FOR LOCAL AND NATIONAL ELECTIONS

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

SECTION 1. Exemption from Income Taxation of Benefits under the Election Service
Reform Act. All amounts granted to persons rendering election service in national and
local elections as defined under the Election Service Reform Act or Republic Act 10756
shall not be included in the computation of gross income and shall be exempt from
income taxation.

SECTION 2. Implementing Rules and Regulations. The Bureau of Internal Revenue shall
promulgate the rules and regulations necessary for the implementation of this Act within
a period of thirty (30) days after its effectivity.

SECTION 3. Repealing Clause. All laws, decrees, rules and regulations, and other
issuances inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or one (1) newspaper of general circulation.

Approved,