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16 DEC 2013 3

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

H.No, 3088

Introduced by Representative Estrellita “Ging” B. Suansing

EXPLANATORY NOTE

The spirit of the holiday season is within us already; but | am afraid many of
our fellow Filipinos cannot enjoy the season in the same way we do. They are those
who were tragically affected by calamitous events such as typhoon Sant! which
ravaged Central Luzon in October, causing damage in the amount of more than P3
billion’ on two provinces alone, including Nueva Ecija; essentially obliterating a good
part of the so-called ‘rice granary’ of the Philippines;

Amidst typhoon Santi’s wake, a 7.2-magnitude earthquake hit Bohol also in
the month of October, causing damage in the amount of P2.2 billion®. More recently
Super Typhoon Yolanda (Haiyan) devastated practically the whole of the Visayan
islands in November, with estimated damage in the vicinity of P30 billion’;

It cannot be denied that although national and international relief efforts would
significantly alleviate the plight of the victims of said calamities, there are still a lot of
things to cover for things to return to the old ways and splendor;

Thus, this bill amending Republic Act 8424, “National Internal Revenue
Code" (NIRC) of the Philippines, by granting full deduction from gross income the
amount of contributions made to disaster relief recovery and rehabilitation efforts and
activities and for other purposes, is filed for approval,

The bill speaks about donations to the government of the Philippines, or to
any of its agencies or political subdivisions, including fully-owned government
corporations, educational and/or charitable religious, cultural or social welfare

Source: www.rappler.com; viewed on December 10, 2013
? Source: Wikipedia.org; viewed on December 10, 2013
* Source: wwyw.sunstar.com.ph: viewed on December 10, 2013

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corporation, institution, accredited nongovernment organization, foundations, and
trust or philanthropic organization, exclusively to finance, to provide for, or to be used
in undertaking disaster relief, recovery, and rehabilitation efforts and other activities
necessary or in connection with post-recovery efforts for areas affected by disasters;

The bill also defines the word ‘disaster’ as a serious disruption of the
functioning of a community or a society involving widespread human, material,
economic or environmental losses making it difficult or impossible for the community
or society to cope using its own resources;

If enacted into law, this bill would greatly help in the rehabilitation of the
affected provinces and will restore the lives of our fellow Filipinos in the process
contributing to the immediate recovery of our country.

In view of the foregoing, approval of the bill is most earnestly sought.

WAV
Rep. eernblk “GING” B. SUANSING
1°" District, Nueva Ecija)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

“H. Bill No.3 988

Introduced by Representative Estrellita "Ging" B. Suansing

AN ACT

AMENDING REPUBLIC ACT 8424, OR NATIONAL INTERNAL REVENUE CODE
(NIRC) OF THE PHILIPPINES, AS AMENDED BY GRANTING FULL DEDUCTION
FROM GROSS INCOME THE AMOUNT OF CONTRIBUTIONS MADE TO
DISASTER RELIEF RECOVERY AND REHABILITATION EFFORTS AND
ACTIVITIES AND FOR OTHER PURPOSES

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

SECTION 1. A new Section 34 (H)(2)(d) is hereby inserted after Section 34 (H)(2)©
of Republic Act No. 8424, or the National Internal Revenue Code of the Philippines, to read

as follows:

SEC. 34. Deductions from Gross Income. — Except for taxpayers earning
compensation income arising from personal services rendered under an
employer-employee relationship where no deductions shall be allowed under
this Section other than under subsection (M) 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; XXX

(H) Charitable and Other Contributions — XXX

(2) Contributions Deductible in Full. — Notwithstanding the provisions of the
preceding subparagraph, donations to the following institutions or entities
shall be deductible in full; XXX

(d) DONATIONS FOR DISASTER RELIEF, RECOVERY, AND
REHABILITATION EFFORTS AND OTHER ACTIVITIES. — DONATIONS
TO THE GOVERNMENT OF THE PHILIPPINES OR TO ANY OF ITS
AGENCIES OR POLITICAL SUBDIVISIONS, INCLUDING FULLY-OWNED
GOVERNMENT CORPORATIONS, = EDUCATIONAL = AND/OR
CHARITABLE RELIGIOUS, CULTURAL OR SOCIAL WELFARE
CORPORATION, INSTITUTION, ACCREDITED NONGOVERNMENT

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ORGANIZATION, FOUNDATIONS, AND TRUST OR PHILANTHROPIC
ORGANIZATION, EXCLUSIVELY TO FINANCE, TO PROVIDE FOR, OR
TO BE USED IN UNDERTAKING DISASTER RELIEF, RECOVERY, AND
REHABILITATION EFFORTS AND OTHER ACTIVITIES NECESSARY
FOR, AND IN CONNECTION WITH, THE POST-RECOVERY EFFORTS
FOR AREAS AFFECTED BY DISASTER.

“DISASTER” MEANS A SERIOUS DISRUPTION OF THE FUNCTIONING
OF A COMMUNITY OR A SOCIETY INVOLVING WIDESPREAD HUMAN,
MATERIAL, ECONOMIC OR ENVIRONMENTAL LOSSES AND IMPACTS,
WHICH EXCEEDS THE ABILITY OF THE AFFECTED COMMUNITY OR
SOCIETY TO COPE USING ITS OWN RESOURCES. DISASTERS ARE
OFTEN DESCRIBED AS A RESULT OF THE COMBINATION OF THE
FOLLOWING: EXPOSURE TO HAZARDS; CONDITIONS OF
VULNERABILITY THAT ARE PRESENT; AND INSUFFICIENT CAPACITY
OR MEASURES TO REDUCE OR COPE WITH THE POTENTIAL
NEGATIVE CONSEQUENCES. DISASTER IMPACTS MAY INCLUDE
LOSS OF LIFE, INJURY, DISEASE, AND OTHER NEGATIVE EFFECTS.
ON HUMAN, PHYSICAL, MENTAL AND SOCIAL WELL-BEING,
TOGETHER WITH DAMAGE TO PROPERTY, DESTRUCTION OF
ASSETS, LOSS OF SERVICES, SOCIAL AND ECONOMIC DISRUPTION
AND ENVIRONMENTAL DEGRADATION,

SECTION 2. Implementation. The Bureau of Internal Revenue, in consultation with
all relevant government agencies shall issue implementing rules and regulations within
ninety (90) days from effectivity hereof, and such other rules and regulations as may be
necessary to carry out the purpose of this Act

SECTION 3. Separability Clause. - If any portion or provision of this Act is declared
void and unconstitutional, the remaining portions or provisions hereof shall not be affected
by such declaration.

SECTION 4. Repealing Clause. - All laws, decrees, order, rules and regulations,
other issuances, or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SECTION 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) national newspapers of general circulation.

Approved,