FIFTEENTH CONGRESS OF THE 
) 
·11 
MAY 31 
P 5 :12 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
COMMITTEE REPORT NO. 43 
Submitted by the Committee on Ways and Means on __ 
M_A_Y_3_1_2_0_1_1 ___ _ 
Re: Senate Bill No. 28 55 
Recommending its approval in substitution of Senate Bill Nos. 388, 2139 and 2624 
Sponsor: 
Senator Ralph G. Recto 
MR. PRESIDENT: 
The Committee on Ways and Means, to which were referred S.B. No. 388, 
introduced by Senator Trillanes IV, entitled: 
"AN ACT 
INCREASING THE ADDITIONAL EXEMPTION FOR TAXPAYERS 
WITH DEPENDENTS INCAPABLE OF SELF-SUPPORT BECAUSE 
OF MENTAL OR PHYSICAL DEFECT, OR WITH DISABILITIES AND 
BOTH SPOUSES TO CLAIM THE SAME, AMENDING FOR THE 
PURPOSE SECTION 
35(B) OF 
REPUBLIC ACT 
NO. 
8424, 
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE 
CODE OF THE PHILIPPINES, AND FOR OTHER PURPOSES", 
Senate Bill No. 2139, introduced by Senator Recto, entitled: 
"AN ACT 
REMOVING THE LIMITATION IN THE NUMBER OF ALLOWABLE 
DEPENDENTS COVERED BY THE ADDITIONAL 
PERSONAL 
EXEMPTION FOR INDIVIDUAL TAXPAYER, AMENDING FOR THE 
PURPOSE SECTION 4 OF REPUBLIC ACT 9504" 
and Senate Bill No. 2624, introduced by Senator Villar, entitled: 
"AN ACT 
GRANTING TAX 
DEDUCTIONS TO 
PARENTS AND 
LEGAL 
GUARDIANS OF CHILDREN WITH SPECIAL NEEDS" 


has considered the same and has the honor to report the bills back to the Senate 
with the recommendation that the attached Senate Bill N02 855 prepared by the 
Committee, entitled: 
"AN ACT 
PROVIDING 
ADDITIONAL 
RELIEF 
TO 
FAMILIES 
WITH 
DEPENDENTS, SUPPORTING AGING PARENTS AND DISABLED 
PERSONS" 
be approved in substitution of Senate Bill Nos. 388, 2139, and 2624 with Senators 
Trillanes IV, Recto and Villar as authors thereof. 
Members: 
NGILI~ ~ 
-~ 
FRANCIS "Chiz" G. ESCUDERO 
4":'(::) 
MAG{(.'Lit:" M. LAPID 
AN~on:}~rLAN~S W 
R. OSMENA 1/1 
ORE 
MANNY VILLAR 
EDGARDOJ.ANGARA 


, 
L-~~ ~j~ ~~;~ 
MIRIAM DEFE~SOR SANTI6GO 
JOKER P. ARROYO 
() 
hIl14', 
lis!AYET. NO 
Ex Officio Members: 
Y EJERCITO ESTRADA 
Pre ident Pro-Tempore 
ALAN PET 
'Companero" S. C 
Minority Leader 
HON. JUAN PONCE ENRILE 
President 
Senate of the Philippines 
Pasay City 
File:Recto/SubBiIIs-CR/CR-AllowDed 
Majority Lea 
TANO 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'1 1, 
MAY 31 
P5 :12 
SENATE 
S. No. 2855 
lU:CEi','f.;D BY:~_ 
(In substitution of S. Nos. 388, 2139, and 2624) 
r-' 
Prepared by the Committee on Ways and Means with Senators Trillanes IV, Recto 
and Villar as authors thereof 
AN ACT 
PROVIDING 
ADDITIONAL 
RELIEF 
TO 
FAMILIES 
WITH 
DEPENDENTS, 
SUPPORTING AGING PARENTS AND DISABLED PERSONS. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Additional Relief to 
2 
Families Act. " 
3 
SEC. 2. Declaration of Policy and Objectives. - The State recognizes the 
4 
Filipino family as the foundation of the nation. Accordingly it shall strengthen its 
5 
solidarity and actively promote its total development. 
6 
Further, the Constitution declares that the family has the duty to take care of 
7 
its elderly members but the State may also do so through just programs of social 
8 
security. 
9 
Towards this end, Congress shall give highest priority to the enactment of 
10 
measures that will grant reprieves, and reduce social and economic inequalities by 
11 
alleviating the financial conditions of every family especially those with more 
12 
children; individuals caring for aging parents, and those who act as legal guardians 
13 
to persons with mental or physical handicap. 
1 


1 
SEC. 3. Additional Reliefs. - In addition to the benefits granted under existing 
2 
laws, Section 35(8) of Republic Act No. 8424, otherwise known as the National 
3 
Internal Revenue Code of 1997, as amended by Republic Act No. 9504, is hereby 
4 
further amended, to read as follows: 
5 
"SEC. 35. Allowance of Personal Exemption for Individual Taxpayer. 
6 
"(A) In General. - For purposes of determining the tax provided in 
7 
Section 24(A) of this title, there shall be allowed a basic personal 
8 
exemption amounting to Fifty thousand pesos (P50,000) for each 
9 
individual taxpayer. 
10 
"In the case of married individual where only one of the spouses 
11 
is deriving gross income, only such spouse shall be allowed the 
12 
personal exemption. 
13 
"(8) Additional Exemption for Dependents. - There shall be allowed an 
14 
additional exemption of Twenty-five thousand pesos (P25,000) for 
15 
each dependent [not exceeding four (4)]. 
16 
"For purposes of this Subsection, THE TERM [a] "dependent/S" 
17 
SHALL mean[s a]: 
18 
"1) ONE OR MORE UNMARRIED legitimate, LEGITIMATED, 
19 
illegitimate or legally adopted child NOT MORE THAN 
20 
TWENTY-ONE (21) YEARS OF AGE, [chiefly dependent upon 
21 
and] living with the taxpayer, [if such dependent is not more 
22 
than twenty-one (21) years of age, unmarried and] not gainfully 
23 
employed, [or if such dependent] AND DEPENDENT UPON 
24 
THE LATTER FOR CHIEF SUPPORT, OR WHERE SUCH 
25 
CHILD, regardless of age, is incapable of self-support because 
26 
of mental or physical [defect) HANDICAP. 
2 


1 
"The additional exemption for dependents REFERRED 
2 
HEREIN shall be claimed by only one of the spouses in the 
3 
case of married individuals. 
4 
"In the case of legally separated spouses, additional 
5 
exemptions may be claimed only by the spouse who has 
6 
custody of the child or children[: Provided, that the total amount 
7 
of additional exemptions that may be claimed by both shall not 
8 
exceed the maximum additional exemptions herein allowed]. 
9 
"2) A PARENT OR BOTH PARENTS, NOT GAINFULLY 
10 
EMPLOYED, 
LIVING 
WITH 
THE 
TAXPAYER, 
AND 
11 
DEPENDENT UPON THE LATTER FOR CHIEF SUPPORT, 
12 
OR WHERE SUCH PARENTS, REGARDLESS OF INCOME, 
13 
ARE 
INCAPABLE 
OF 
SELF-SUPPORT 
BECAUSE 
OF 
14 
MENTAL OR PHYSICAL HANDICAP. 
15 
"AN 
INDIVIDUAL TAXPAYER WHO ACTS 
AS 
LEGAL 
16 
GUARDIAN TO A PERSON WITH MENTAL OR 
PHYSICAL 
17 
HANDICAP, REGARDLESS OF AGE AND INCAPABLE OF SELF-
18 
SUPPORT, MAY CLAIM THE ADDITIONAL EXEMPTION FOR THE 
19 
SAID 
DEPENDENT: 
PROVIDED, 
THAT 
ONLY 
THE 
LEGAL 
20 
GUARDIAN CAN AVAIL OF THE ADDITIONAL EXEMPTION FOR A 
21 
PARTICULAR TAXABLE YEAR TO THE EXCLUSION OF THE 
22 
BIOLOGICAL PARENTS. 
23 
"xxx." 
24 
SEC. 4. Penalty. - Notwithstanding the penalty provided for in Section 267 of 
25 
the National Internal Revenue Code of 1997, as amended, any person who willfully 
26 
violates the preceding section by declaring fictitious dependents shall, upon 
3 


1 
conviction, be liable for the payment of a fine equivalent to thrice the amount of tax, 
2 
interest and surcharges due from the taxpayer. 
3 
SEC. 5. Implementing Rules and Regulations. - The Department of Finance 
4 
in coordination with the Bureau of Internal Revenue, and the Department of Social 
5 
Welfare and Development shall issue the necessary implementing rules and 
6 
regulations within thirty (30) days upon the approval of this Act. 
7 
SEC. 6. Separability Clause. -
If any provision of this Act is declared 
8 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
9 
continue to be in full force and effect. 
10 
SEC. 7. Repealing Clause. -
All laws, decrees, rules and regulations 
11 
inconsistent with the provisions of this Act are hereby repealed, amended or 
12 
modified accordingly. 
13 
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days following its 
14 
publication in at least (2) newspapers of general circulation or the Official Gazette. 
Approved, 
4