SIXTEENTH CONGl,(ESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'13 
.IUL! 7 
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INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCr.l.'O 
EXPI,ANATORY NOTE 
This bill seeks to grant tax exemption on allowances and 
benefits granted to public school teachers. Undoubtedly, there is a 
great demand now for public school teachers in the rural areas 
especially considering the shortage brought about lately by the exodus 
of teachers for overseas employment. However, the difficulties of life in 
the rural areas, such as in transportation, lodging or insurgency 
problem, to mention only a few, have discouraged teachers Lo be 
employed there. 
Thus, it is the sincere belief of the undersigned that with this 
privilege of tax exemption on salary, more new teachers will be 
encouraged to accept teaching jobs in remote areas, where usually 
vacancy of temporary nature exists. This is because public school 
teachers in this category either will get an equal take home payor a 
regular public school teacher may even get more than due to the 
savings 1.hey get from being tax exempt. 
This bill will also encourage teachers to opt to stay in the public 
school system to enhance the teaching-learning process. It cannot be 
ignored that the tax exemption on the income of teachers will result in 
extra money for them to spare for their other needs. 
In view of the foregoing, approval of this bill is urgen tly sought. 
, 
JOSEPH VICTOR G. E,TERCITO 


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SIXTEENTH CONGRESS OF THE 
) 
'13 n 17 /\9 n 
REPUBLTC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
SENATE BILL NO. 843 
INTRODUCED BY SENATOR JOSEPH VICT01R G. EJERCrrO 
AN ACT 
EXEMPTING FROM TAX ALL ALLOWANCES AND 
BENEJrITS GRANTED TO PUBLIC SCHOOL TEACHF;RS, 
INCLUDING THOSE IN THE STATE COLLEGES AND 
UNIVERSITIES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be referred to as "The 
Public Scllool Teacllens' Tax Incentive Act of 2013". 
SEC. 2. Statement of Policy . .. It is hereby declared the policy 
of the State to 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 
means of job satisfaction and fulfillment. 
It is furtber declared a policy and commitment of the State to 
promote and improve the economic status of all public school 
teachers, including those in State colleges and universities by 
increasing their take home pay through exemption from tax all 
allowances and benefits granted to them. 
SEC. 3. Exclusions fl'om Gross Income . .. All allowances and 
benefits granted to public school teachers, including those in the 
State colleges and universities at all levels, shan not be included in 
the computation of gross income and shall be exempt from taxation 
under Title III, Chapter VI of Republic Act No. 8424, otherwise known 
as tbe "Tax Reform Act of 1997". 
SEC. 4. Exemption ft'om Attachment, Levy, and Execut:ion. -
All benefits and allowances referred to herein shall likewise not be 
subject to attachment, levy, and execution. 


SEC. 5. nules and Iiegulations. - The Commissioner of the 
Bureau of Internal Revenue is hereby authorized to promulgate such 
rules and regulations as may be necessary to implement the 
provisions of this Act. 
SEC. 6. nepealing Clause. - All laws, decrees, executive 
orders, letters of instruction, letters of instruction, letters of 
implementation, 
rules and 
regulations, 
and 
other Issuances 
inconsistent with any provision of this Act are hereby repealed, 
modified, superseded or amended accordingly. 
SEC. 7. Separability Clause. - If any provision of this Act of 
the application of such provision to any person or circumstance is 
held invalid for any reason, the remainder of this Act or the 
application of such provision to other persons or circumstances shall 
110t be affected thereby. 
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days 
after its complete pUblication in any two (2) newspapers of general 
circulation. 
Approved,