SEVENTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES

Third Regular Session ) 18 AUG IS P1 49

SB. Non 941

Introduced by Senator Maria Lourdes Nancy S. Binay

AN ACT EXEMPTING FROM INCOME TAX COMPENSATION GIVEN TO
TEACHERS FOR SERVING AS MEMBERS OF THE ELECTORAL BOARD FOR
LOCAL OR NATIONAL ELECTIONS

EXPLANATORY NOTE

Teachers are often said to be the heroes of every election season, They are
often called on to be on the frontlines of the polls serving as members of the
Board of Election Tellers (BET) tasked with operating the Vote Counting
Machines (VCM) and assisting voters on Election Day.

Unfortunately, the election season is prone to incidents of election-related
violence and deaths. During the May 14, 2018 Barangay and Sangguniang
Kabataan elections, the Philippine National Police (PNP) classified 597 areas in
the country as red hotspots, 4,970 as orange hotspots, and 2,071 as yellow
hotspots. Each hotspot represent prevalent hazards to the identified areas: red
referring to areas in “critical situation”, orange have “presence of armed groups
and organized movements outside the law”, and yellow referring to places with
“history of political unrest”. In the same election, about half a million teachers
was reported to volunteer to supervise the polls.

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This Bill seeks to exempt from income tax, compensation given to teachers for
serving as members of the electoral board for local or national elections, for their
notable service during election seasons.

In view of the foregoing, the passage of this bill is earnestly sought.

MARIA LOURDEYNANCY S. BINAY
Senator



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SEVENTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES

Third Regular Session ) 18 AUG IS P1 49

SENATE
No._194]) REL

Introduced by Senator Maria Lourdes Nancy S. Binay

AN ACT EXEMPTING FROM INCOME TAX COMPENSATION GIVEN TO
TEACHERS FOR SERVING AS MEMBERS OF THE ELECTORAL BOARD FOR
LOCAL OR NATIONAL ELECTIONS

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

Section 1. It is a declared policy of the State to promote and uplift the economic
status of teachers and to recognize the public service they are rendering by
serving in the Electoral Boards during national and local elections.

Sec. 2. Section 24 (A) (1) (a) of Republic Act No. 10963 provides that taxable
income, as defined for each taxable year from all sources within and without the
Philippines by every individual citizen of the of the Philippines residing therein,
shall be subject to income tax if the taxable income is over P250,000.00, Section
32 of the National Internal Revenue Code of the Philippines defines gross income
to include compensation for services in whatever from paid, including, but not

limited to fees, salaries, wages, commissions, and similar items.

Sec. 3. All compensation received by teachers for rendering services as part of
the Electoral Board for the national or local election shall not be included in the

computation of gross income and shall be exempt from income tax.

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Sec. 4. Implementing Rules and Regulations - The Commissioner of the Bureau
of Internal Revenue shall promulgate such rules and regulations as may be
necessary to implement the provision of this Act within (90) days after the
effectivity of this Act.

Sec. 5. Separability Clause — If any provision or section of this Act is held invalid
or unconstitutional, the other provisions and sections not affected thereby shall
remain in full force and effect.

Sec. 6. Repealing Clause ~ All laws, presidential decrees, executive orders, or
issuances, or any part thereof which are inconsistent with the provisions of this

Act are hereby repealed, amended, or modified accordingly.

Sec.7. Effectivity - This Act shall take effect fifteen (15) days after its publication
in the Official Gazzette or two (2) newspaper of general circulation.

Approved,