> RECEIVED @\
are; 07 MAY 20145

TIME: “AP

SIXTEENTH CONGRESS \ 2, Br: Hope j
First Regular Session e J ]

HOUSE BILL NO. 4372

Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

Introduced by Representative Rodrigo A. Abellanosa

EXPLANATORY NOTE

For many years, our nation has been experiencing the migration of skilled labor looking for
better-paying employment abroad. As movements to increase salary levels have shown to be
minimally productive because of the opposition primarily of the private sector, it is necessary
that the government seek other ways of making our countrymen’s lives easier, thus making local
employment more attractive. In this connection, this bill seeks to amend Section 24 of the
National Internal Revenue Code of 1997, as amended, thereby reducing individual income tax
rates,

Lower taxes, at unchanged salary levels, translate to higher ‘take-home’ pays for income-
earners, easing some of the burden from our people and diminishing the need to look for
‘employment outside the country,

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


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila
SIXTEENTH CONGRESS

First Regular Session

House sitno.___4372

Introduced by Representative Rodrigo A. Abellanosa

AN ACT
AMENDING SECTION 24 OF THE NATIONAL INTERNAL REVENUE CODE
OF 1997, AS AMENDED, AND FOR OTHER PURPOSES

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

SECTION 1, Section 24(A)(2) of the National Internal Revenue Code of 1997, as amended, is
hereby further amended to read as follows:
"Sec, 24, Income Tax Rates -
(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the
Philippines ~
(2) Rates of Tax on Taxable Income of Individuals - The tax shall be computed in
accordance with and at the rates established in the following schedule’

| Taxable Income Beginning ing Begini
January 1, 2015 4, 2016 | January 1, 2017
“P20,000 but not 15% 13% 10%
over P70,000
Over P70,000 | P10,500 + 20% of | P9,100 + 18% of | P7,000 + 15% of
but not over the excess over | the excess over _| the excess over
200,000 P70,000 P70,000 70,000
“Over P200,000 | P36,500 + 25% of | P32,500 + 23% of | P26,500 + 20% of
but not over the excess over | the excess over _| the excess over
500,000 200,000 200,000 200,000
‘Over P500,000 | P117,500+ 30% | P107,500+ 25% | P86,500 + 22% of
but not over of the excess of the excess the excess over
P1,000,000 over P500,000 _| over PS500,000 _| P500,000
‘Over P1,000,000 | P267,500 + 32% | P226,500+ 28% | P196,500 + 25%
of the excess of the excess of the excess
over P1,000,000 | over P1,000,000_| over P1,00,000
[Not over P10,000........ 5%

Over P10,000 but not over P30,000....... P500+10% of the excess over P10,000
Over P30,000 but not over P70,000.......P2,500+15% of the excess over P30,000


Over P70,000 but not over P140,000.... ...P8,500+20% of the excess over P70,000
Over P140,000 but not over P250,000....P22,500+25% of the excess over P140,000
‘Over P250,000 but not over P500,000....P50,000+30% of the excess over P250,000
Over P500,000 P125,000+34% of the excess over P500,000]

"0

XX.

SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance shall promulgate
the necessary rules and regulations for the effective implementation of the provisions of this,
Act.

SEC. 3. Repealing Clause. - All laws, orders, issuances, circulars, rules and regulations or
parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly

SEC. 4, Separability Clause. - If any provision of this Act is declared unconstitutional or
invalid, other parts or provisions hereof not affected thereby shall continue to be in full force
and effect.

SEC. 5. Effectivity. - This Act shall take effect on January 1, 2015, following its publication in
at least two (2) newspapers of general circulation.

Approved,