SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE;... 
S.B. NO. 
~784 
Introduced by Senator Maria Lourdes Nancy S. Binay 
~<'mlh' 
tl!}lh: r '1f HI" .~f'("rrhn'~ 
'15 MY 26 
AlO :05 
AN ACT EXEMPTING SALES OF CONSTRUCTION MATERIALS AND LEASE OF 
CONSTRUCTION EQUIPMENT INTENDED FOR SOCIALIZED HOUSING PROJECTS 
AND HOUSING OR REHABILITATION PROJECTS FOR VICTIMS OF DISASTERS, 
FROM VALUE-ADDED TAX; AMENDING FOR THE PURPOSE SECTION 109 OF THE 
NATIONAL INTERNAL REVENUE CODE 
EXPLANATORY NOTE 
The right to shelter is a fundamental human right. 
For millions of Filipinos still living in poverty the said right remains elusive to this day. It is 
our bounden duty as representatives of the Filipino people to eliminate all ob~tacles towards 
full implementation of programs that ensure housing for all. 
By eliminating Value-Added Taxes imposed on construction materials including lease of 
equipment for socialized housing as well as housing projects for disaster victims; it is hoped 
that we are able to contribute to this objective of making available housing for all. 
For the above reason, the passage of this bill is earnestly requested. 
MA~ANCY 
S. BINAY 
Senator 


• 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
) 
) 
) 
S.B. NO. ~7 8 <1 
Introduced by Senator Maria Lourdes Nancy S. Binay 
'15 
MAY 26 
AID :05 
1 
AN ACT EXEMPTING SALES OF CONSTRUCTION MATERIALS AND LEASE OF 
2 
CONSTRUCTION EQUIPMENT INTENDED FOR SOCIALIZED HOUSING PROJECTS 
3 
AND HOUSING OR REHABILITATION PROJECTS FOR VICTIMS OF DISASTERS, 
4 
FROM VALUE-ADDED TAX; AMENDING FOR THE PURPOSE SECTION 109 OF THE 
5 
NATIONAL INTERNAL REVENUE CODE 
6 
7 
8 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
9 
assembled: 
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SECTION 1. Section 109 of the National Internal Revenue Code is hereby amended to read 
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as follows: 
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"SEC. 109. Exempt Transactions. - The following shall be exempt from the 
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value-added tax: 
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(a) Sale of nonfood agricultural products; marine and forest products in their 
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original state by the primary producer or the owner of the land where the same are 
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produced; 
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20 
XXX 
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(z) Sale or lease of goods or properties or the performance of services 'other than 
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the transactions mentioned in the preceding paragraphs, the gross ruyIual sales 
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and/or receipts do not exceed the amount of Five hundred fifty thousand pesos 
25 
(P550,000): Provided, That not later than January 31st of the calendar year 
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subsequent to the effectivity of Republic Act No. 8241 and each calendar year 
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thereafter, the amount of Five hundred fifty thousand pesos (550,000) shall be 
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adjusted to its present value using the Consumer Price Index, as published by the 
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National Statistics Office (NSO). 
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31 
(AA) 
SALE 
OF 
CONSTRUCTION 
MATERIALS 
OR 
LEASE 
OF 
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CONSTRUCTION EQUIPMENT USED FOR LOW-COST AND SOCIALIZED 
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HOUSING AS DEFINED UNDER REPUBLIC ACT NO. 7279, OTHERWISE 
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KNOWN AS THE URBAN DEVELOPMENT AND HOUSING ACT OF 1992 
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AND OTHER RELATED LAWS; INCLUDING HOUSING PROJECTS AND 
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PROJECTS TO REHABILITATE DAMAGE HOUSES FOR VICTIMS OF 


• 
1 
DISASTERS AS DEFINED UNDER REPUBLIC ACT NO. 10121 OR· 
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PHILIPPINE DISASTER RISK REDUCTION AND MANAGEMENT ACT OF 
3 
2010. 
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The foregoing exemptions to the contrary notwithstanding, any person whose sale 
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of goods or properties or services which are otherwise not subject to VAT, but 
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who issues a V AT invoice or receipt therefor shall, in addition to his liability to 
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other applicable percentage tax, if any, be liable to the tax imposed in Section 106 
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or 108 without the benefit of input tax credit, and such tax shall also be recognized 
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as input tax credit to the purchaser under Section 110, all of this Code." 
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SECTION 2. Repealing Clause. All laws, decrees, executive orders, proclamations, rules 
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and regulations and other issuance of parts thereof, inconsistent with the provisions of this 
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Act are hereby repealed or modified accordingly. 
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SECTION 3. Effectivity. This Act shall take effect fifteen (15) days after its complete 
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publication in at least two (2) newspapers of general circulation. 
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Approved,