6
EIGHTEENTH CONGRESS OF T H E } 
REPUBLIC OF THE PHILIPPINES 
} 
F irst R e g u la r S essio n  
}
t( ll).- &'■ I otnrp
*19 
JUL-8 P12:0l
S E N A T E  
J.B. No. 2 4 1
R EU i k l -L.
In tro d u ced  by SENATOR VICENTE C. SOTTO III
AN ACT
PROVIDING TAX RELIEF TO PUBLIC SCHOOL TEACHERS 
BY EXEMPTING THEM FROM INCOME TAXATION, AMENDING FOR THE 
PURPOSE SECTIONS 22 AND 24A OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED
EXPLANATORY NOTE
The C onstitution, Article XIV, Section 5 provides:
"The State shall assign the highest budgetary priority to 
education and ensure that teaching will attract and retain 
its rightful share of the best available talents through 
adequate remuneration and other m eans of job satisfaction 
and fulfillment."
We recognize the inevitable fact th at our teachers play a crucial and 
significant role in molding our youth to become tomorrow's great leaders, 
movers, productive and responsible citizens. It is within their nurturing 
h ands th at lies the future of our youth and our nation. We consider them  as 
our "m odem  day heroes". Teacher's Code of Ethics states th at "each teacher 
is viewed as a trustee of the cultural and educational heritage of the nation, 
and is under obligation to transm it to learners such heritage as well as to 
elevate national morality, promote national pride, cultivate love of country, 
instill allegiance to the C onstitution and respect for all duly constituted 
authorities, prom ote obedience to the laws of the State". Teachers are 
regarded as duly licensed professionals who possess dignity and reputation 
with high m oral values as well as technical and professional competence.


In order to show our appreciation to our teachers who selflessly, 
untiringly and devotedly im part their knowledge and build the character of 
our students, it is apt for the Governm ent to create m easures which will 
prom ote the welfare and economic well-being of our teachers, specifically 
public school teachers whose salary are currently ju s t a little higher than 
the m inim um  wage. This is in consonance with RA 4670 or the Magna C arta 
for Public School Teachers which aim ed "to prom ote and improve the social 
and economic statu s of public school teachers, their living and working 
conditions, their term s of employm ent and career prospects in order th at 
they may com pare favorably with existing opportunities in other walks of 
life, attract and retain in the teaching profession more people with the 
proper qualifications, it being recognized th at advance in education depends 
on the qualifications and ability of the teaching staff and th at education is 
an essential factor in the economic growth of the nation as a productive 
investm ent of vital importance."
The bill seeks to exem pt public school teachers, particularly Teachers 
I, II and III from the paym ent of income tax. By lifting their burden of paying 
the income tax, we give our hard-w orking and dedicated teachers w hat they 
rightfully deserve; a gift for their unconditional love and sacrifice in m aking 
the youth our country's wealth and pride.
In view of the foregoing, im m ediate passage of this bill IS earnestly 
sought.
VICENTE C. SOTTO III


EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
} 
F irs t R e g u la r S essio n  
}
iTn-)
’l\— ^ V
S E N  A T  E
LB. No. 241
of l|)r ~ n  rl ■■',n rP
'19 JUL -8 P12 -01
RECEi ) 
i- 
-
In tro d u ced  by SENATOR VICENTE C. SOTTO III
AN ACT
PROVIDING TAX RELIEF TO PUBLIC SCHOOL TEACHERS 
BY EXEMPTING THEM FROM INCOME TAXATION, AMENDING FOR THE 
PURPOSE SECTIONS 22 AND 24A OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED.
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assem bled:
1 
SECTION 1. Section 22 of Republic Act No. 8424, as am ended,
2 
otherwise known as the National Internal Revenue Code of 1997, is hereby
3 
further am ended by adding the following definition after Subsection (HH) to
4 
read as follows:
5 
"SEC. 22. Definitions. - when used in this Title:
6 
"(A) XXX.
7 
"xxx
8 
"(HH) x x x .
9 
(II) THE TERMS TEACHER I, TEACHER II AND TEACHER III’
10 
SHALL 
REFER TO 
THE 
BASIC 
CLASSROOM 
TEACHER
11 
POSITIONS 
IN PUBLIC 
ELEMENTARY 
AND 
SECONDARY
12 
SCHOOLS AS DEFINED BY THE DEPARTMENT OF EDUCATION
13 
(DEPED).
14 
(JJ) 
THE 
TERM 
PUBLIC 
SCHOOL* 
SHALL 
REFER 
TO
15 
EDUCATIONAL 
INSTITUTIONS 
ESTABLISHED 
AND
16 
ADMINISTERED BY THE GOVERNMENT.
17 
SECTION 2. Section 24(A) 
of Republic Act No. 8424, as am ended,
18 
otherwise known as the National Internal Revenue Code of 1997, is hereby
19 
further am ended to read as follows:
20 
"SEC. 24. Income Tax Rates. -


1 
"(A) Rates of Income Tax on Indimdual Citizen and Individual Resident
2 
Alien of the Philippines. -
3 
"(l)xxx:
4
5 
"(2) XXX
6 
"Provided, T hat m inim um  wage earners as defined in Section 22 (HH)
7 
of this Code AND PUBLIC SCHOOL TEACHERS WITH RANKS
8 
TEACHERS I, II AND III AS DEFINED IN SECTION 22 (II) OF THIS
9 
CODE shall be exem pt from the paym ent of income tax on their
10 
taxable income: Provided, further. T hat the holiday pay, overtime pay,
11 
night shift differential pay and hazard pay received by such m inim um
12 
wage earners shall likewise be exem pt from income tax.
13 
SECTION 3. S e p a ra b ility  C lause - If any provision of this Act is
14 
declared invalid or unconstitutional, other provisions hereof which are not
15 
affected thereby shall continue to be in full force and effect.
16 
SECTION 4. R ep ealin g  C lause - Any law, presidential decree or
17 
issuance, executive order, letter of instruction, adm inistrative order, rule or
18 
regulation contrary to or inconsistent with any provision of this Act as
19 
hereby am ended or modified accordingly.
20 
SECTION 5. E ffectivity C lause - This Act shall take fifteen (15) days
21 
following its publication in the Official Gazette or in at least two (2)
22 
new spaper of general circulation.
Approved,