Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. 4026

Introduced by Representative MARLYN PRIMICIAS-AGABAS

EXPLANATORY NOTE

It has been the declared policy of the State to protect and promote the welfare
of disabled persons who cannot fully take care of themselves by reason of some
physical or mental impairment.

Section 2 (a) of Republic Act 7277 otherwise known as the Magna Carta for
Disabled Persons which was enacted in 1992 emphasizes that “[d]isabled persons are
part of Philippine society, thus the State shall give full support to the improvement of
the total well-being of disabled persons and their integration into the mainstream of
society. Toward this end, the State shall adopt policies ensuring the rehabilitation,
self-development and self-reliance of disabled persons. It shall develop their skills and
potentials to enable them to compete favorably for available opportunities.”

In order to fully realize the spirit of the law in giving full support to the well-
being of disabled persons, its is not only helpful but essential to enact laws which will
provide aid to persons charged with the caring of disabled persons, specifically those
persons who derive their earnings from compensation income or common
employees. Due to the huge cost related in caring for persons with special needs like
rehabilitation and medication, the government should take steps in taking these into
consideration.

The proponent believes that an increase in additional exemption of fifty
thousand pesos (Php50,000.00) from twenty five thousand pesos (Php25,000.00)
granted to an individual taxpayer for every dependent with disability, not exceeding,
four (4), shall give taxpayers margin for necessary expenses. The proposed measure
may not work in favor of the government but it will definitely alleviate the burden of
many of our people who have dependents with disabilities who need more care and
attention which, in turn, require extra expenses and costs.

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

Lo. of
snl i S-AGABAS
6th Dibtrict, Pafgasinan


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. 4026

Introduced by Representative MARLYN PRIMICIAS-AGABAS

AN ACT
GRANTING ADDITIONAL EXEMPTION FOR DEPENDENTS WITH
DISABILITIES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
9504, OTHERWISE KNOWN AS “AN ACT AMENDING SECTIONS 22, 24,
34, 35, 51 AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED,
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE
OF 1997,” AND FOR OTHER PURPOSES

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

SECTION 1. Section 4 of Republic Act 9504 is hereby amended to read as
follows:

“Sec. 4. Section 35(A) and (B) of Republic Act No. 8424, as amended,
otherwise known as the National Internal Revenue Code of 1997, is
hereby amended to read as follows:

Sec. 35. Allowance of Personal Exemption for Individual
Taxpayer. -

(A) In General. - For purposes of determining the tax provided
in Section 24(A) of this Title, there shall be allowed a basic
personal exemption amounting to Fifty thousand pesos
(P50,000) for ~—seach_~—sindividual~—taxpayer.

In the case of married individuals where only one of the spouse
is deriving gross income, only such spouse shall be allowed the
personal exemption.

(B) Additional Exemption for Dependents. - There shall be
allowed an additional exemption of Twenty-five thousand
pesos (P25,000) for each dependent.

For purposes of this Subsection, a ‘dependent’ means a
legitimate, illegitimate or legally adopted child chiefly
dependent upon and living with the taxpayer if such
dependent is not more than twenty-one (21) years of age,
unmarried and not gainfully employed.

(C) Additional Exemption for Dependents with Disabilites.
— There shall be allowed an additional exemption of Fifty
thousand pesos (P50,000) for each dependent with disability.


For purposes of this Subsection, a ‘dependent with disability’
means a person incapable of self-support because of mental or
physical defect.

(D) Additional Guidelines. - The combined additional
exemptions for dependents and dependents with disabilities
shall not exceed four (4).

The additional exemptions for dependents and dependents
with disabilities shall be claimed by only one of the spouses
in the case. = of-—~=—s married _—individuals.

In the case of legally separated spouses, additional
exemptions may be claimed only by the spouse who has
custody of the child or children: Provided, that the total
amount of additional exemptions that may be claimed by
both shall not exceed the maximum additional exemptions
herein allowed.

bt

SECTION 2. Implementing Rules and Regulations. — In order to carry out the

provisions of this Act, the Bureau of Internal Revenue shall formulate rules and
regulations within ninety (90) days from the effectivity of this Act.

SECTION 3. Separability Clause. - If any provision or part hereof is held
invalid or unconstitutional, the remainder of the law or provision not otherwise
affected shall remain valid and subsisting.

SECTION 4. Repealing Clause, ~ All laws, acts, ordinances, executive orders,
proclamations and administrative regulations, or parts thereof which are inconsistent
herewith are hereby repealed or modified accordingly.

SECTION 5. Effectivity. - This act shall take effect immediately after its
publication in two (2) newspapers of general circulation.

Approved,