Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

House Bill No. _ 504

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

The State is duty-bound to give the common man a relief . the barrage of
problems he encounters day to day, and support for his obligations to himself, his family, and
society. One important, nay, critical social issue that constantly faces each of us that can
never be set aside is health. Yet, it is quite sad that the national budget for health grows
proportionately smaller each year, while the amount set aside for debt servicing steadily
grows.

Priority must be given to the health of its citizens in any government's agenda if it is
to build a prosperous nation, Healthy citizens contribute more to the gross national product.
than a sickly labor force that spends more time in sickbay than contributing to productivity

This bill seeks to enact this line of thinking by allowing taxpayers to deduct expen:
incurred for their health problems from their gross income. In this manner, the health benefits
that the State is having a hard time to provide due to its limited resources, will be indirectly
met through this proposed measure.

In view of the urgency of this measure, its passage is earnestly requested.

RO 0 GBL
Representative
Lone District, Muntinlupa City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No.

Introduced by Hon. Rodolfo G.

AN ACT.
INCLUDING MEDICAL EXPENSES AS ALLOWABLE TAX DEDU
INDIVIDUAL TAXPAYERS, AMENDING FOR THE PURP(
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE TAX REFORM ACT.
OF 1997

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

SEt

“TION 1. Section 34 of Republic Act 8424 is hereby amended to read as follows:

Sec. 34. Deductions from Gross Income. — Except for taxpaye'

ning
compensation income arising from personal services rendered under an employer-employee
relationship where no deductions shall be allowed under this Section other than under
SubsectionS (M) AND N hereof, in computing taxable income subject to income tax under
Sections 24(A); 25(A); 26; 27(A), (B) and (C); and 28(A)(1), there shall be allowed the

following deductions from gross income:

(A) Expenses. —

XXX, XXX XXX XXX

(N) HEALTH MAINTENANCE EXPENSES — EXPENSES INCURRED AS

PAYMENTS BY THE TAXPAYER AND/OR HIS DEPENDENTS FOR


PROFESSIONAL MEDICAL FEES, INCLUDING CONSULTATION
FEES, AND FOR MEDICINES PRESCRIBED FOR DIAGNOSED
ILLNESSES, SHALL BE ALLOWED AS DEDUCTIONS FROM HIS
GROSS INCOME: PROVIDED, THAT ALL SUCH EXPENSES ARE,
SUPPORTED BY OFFICIAL RECEIPTS, MEDICAL CERTIFICATES.

AND DOCTORS’ PRESCRIPTION

PROVIDED FURTHER, THAT IN
THE CASE OF MARRIED TAXPAYERS, SAID DEDUCTION MAY
ONLY BE CLAIMED BY THE SPOUSE CLAIMING THE ADDITIONAL
EXEMPTION FOR DEPENDENTS.

Notwithstanding the provisions of the preceding Subsections, the Seeretary of
Finance, upon the recommendation of the Commissioner, after a public hearing shall have
been held for the purpose, may prescribe by rules and regulations, limitations or ceilings for
any of the itemized deductions under Subsections (A) to (J), AND (N) of this Section:
Provided, ‘That for purposes of determining such ceilings or limitations, the Secretary of
Finance shall consider the following factors: (1) adequacy of the prescribed limits on the

actual expenditure requirements of each particular industry; and (2) effects of inflation or

expenditure lev

s: Provided, further, That no ceilings shall further be imposed on items of
expense already subject to ceilings under present law

SEC. 2. Implementing Rules and Regulations. The Secretary of Finance shall

promulgate the necessary rules and regulatio
SE

s for the effective implementation of this Act.

>, 3. Repealing Clause. ~ All laws, decrees, orders, issuances, rules and regulations
and other issuances or parts thereof inconsistent with this Act are hereby repealed or modified

accordingly.

SEC. 4. Effectivity. — This Act shall take effect fifteen (15) days after publication in

two (2) national newspapers of general circulation.

Approved,

is)