EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E
S. No. 
645
|© i3
©tlicf o( 
cntarp
'ly 
JUL 22 PI -51
Introduced by SENATOR RAMON BONG REVILLA, 3R.
AN ACT
GRANTING TAX INCENTIVES TO BROADCAST AND PRINT MEDIA DEVOTING AIR 
TIME AND SPACE TO EDUCATIONAL PROGRAMS, AND TO ADVERTISERS OR 
SPONSORS SUPPORTING SUCH 
PROGRAMS AND 
FOR OTHER PUPOSES
EXPLANATORY NOTE
The essentiality of utilizing media as a way of furthering the reach of education 
throughout our country is invaluable. The importance of media and education in national 
development is enshrined in the 1987 Constitutional provisions when it states that: "The 
State recognizes the vital roles of communication and information in nation-building" (Article 
II, Section 24) and that: "The State shall protect and promote the right of all citizens to 
quality education at all levels and shall take appropriate steps to make such education 
accessible to all" (Article XIV, Section 1).
The process of learning demands an effective avenue of knowledge transfer. The 
broadcast media and print media are always at constant contract with the population. Thus, 
they play a potentially active and efficient role in information dissemination, more particularly, 
beyond the four corners of the classroom.
Recognizing the importance of media to the present educational program, this bill 
grants tax incentives to media programs and publications, as well as to their respective 
advertisers and sponsors. It is hoped that the measures contained in this bill will become 
an effective tool in the success of the national educational program.


In view of the foregoing considerations, the passage of this bill into law is earnestly 
sought the educational programs
RAMO^BONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E
S. No. 645
a( tljf s&ra rtBrp
'19 
JUL 22 
P I 51
Introduced by SENATOR RAMON BONG REVILLA, 3R.
RECti / . l; J
AN ACT
GRANTING TAX INCENTIVES TO BROADCAST AND PRINT MEDIA DEVOTING 
AIRTIME AND SPACE TO EDUCATIONAL PROGRAMS, AND TO ADVERTISERS 
OR SPONSORS SUPPORTING SUCH PROGRAMS AND FOR OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress Assembled:
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
Section 1. Declaration o f Policy. - It is hereby declared the policy of the State 
to recognize the vital roles of communication and information in nation building and 
shall take appropriate steps to make education accessible to all.
Pursuant to this policy, the State shall promote, support, and provide incentives 
to broadcast and print media, as well as to sponsors or advertisers, who endeavor air 
time and space for educational purposes.
Sec. 2. Coverage. - This Act shall apply to all kinds of mass media operating 
within the Republic of the Philippines.
Sec. 3. Definition o f Terms. - For the purpose of this Act, the following terms
mean:
a) Mass media -  refers to the means of communication which 
includes both broadcast and print media that reach very large 
numbers of people;
b) Broadcast media -  refers to radio, television, cable 
broadcast and the like;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
c) Print media -  refers to newspapers, magazines, reviews, 
bulletins and other publications appearing at regular interval, 
with fixed prices for subscription and sale and published within 
the Philippines;
d) 
Commercials 
and 
Advertisement 
-  
shall 
mean 
announcement, 
description 
presentation, 
advertising 
or 
promoting of something, as of good for sale, in newspaper, 
magazine, television, radio, etc.;
e) Advertiser or sponsor-shall mean the owner or the principal 
of the tiling of product to be advertised or sponsored;
f) Education purposes -  includes, but no limited to, educational 
programs, publications, commercials and advertisement which:
1) 
give positive influence on entertainment;
2) 
promote social values;
3) mobilize community support to, and wage information 
campaigns directed at parents to promote importance of
basic education;
4) improve the image of technical education and skills 
training and to incuicate the necessary values needed for 
productive empioyment;
5) propagate culture, foster patriotism and nationalism 
and 
other values that serve as an instrument in the struggle 
for 
Filipino 
sovereignty, 
identify, 
national 
unity 
and 
integration; and
6) such other similar descriptions the Secretary of 
Education, 
Culture and Sports may provide pursuant to the 
implementation of this Act.
Sec. 4. Tax Exempt Importation. - The provisions of existing laws to the contrary 
notwithstanding, the machinery, equipment, tools for production, spare parts, supplies, 
materials and transportation and communication facilities to be used actually, directly 
and exclusively for educational purposes by media producers and publishers are not 
subject to duty and internal revenue tax. Provided, That where the National Economic


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
and Development Authority certifies to the availability of the above mentioned items 
in the local market of sufficient quantity, comparable quality, and price to meet the 
needs of the producers and publishers subject to existing taxes, the importation of 
items shall be subject to existing taxes: Provided, further. That such tax-exempt items 
brought or imported into the Philippines are subsequently sold, transferred or 
exchanged in the Philippines to be devoted to non-educational purposes, the 
purchasers or recipients shall be considered the importer thereof, and shall be liable 
of the duty and internal revenue tax due on such importation subject to depreciation 
allowance. The tax due on such items shall constitute a lien on the article itself, 
superior to all other charges or liens, irrespective of the possessor thereof.
Sec. 5. Donations for Educational Purpose. - For purposes of this Act, any 
amount paid and contributed for educational programs and publications by any 
individual or corporation which shall not exceed ten percent (10%) of their respective 
annual computed without the benefit of any tax incentives under existing law shall be 
tax deductible.
Properties other than cash donated shall be valued in accordance with the rules 
and regulations prescribe by the Secretary of Finance in consultation with appropriate 
government agencies.
Contributions or gifts shall be allowable as deduction only it verified under the 
regulations prescribe the Secretary of Finance.
Sec. 6. Program and Publication. - The net income derived from educational 
programs and publications shall be tax-exempt for five (5) years from the start of its 
initial operation or until the producer and publisher shall have attained reasonable 
return of their investment. Thereafter, no part of the net income of which inures to 
the benefit of the producer or publisher in an amount not in excess of twenty five 
(25%) of the taxable income derived from the program or publication shall be allowed. 
The excess amount of the net income shall be devoted for the enhancement of the 
educational program and publication and for other educational purposes.
Sec. 7. Commercial and Advertisement -All expenses incurred in the production 
of commercials and advertisements with educational impact, approved by the 
Secretary of Education, Culture and Sports or any equivalent government agency, shall 
enjoy tax deduction of not more than ten percent (10%) of the gross operating


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
1
expenses of the advertisers or sponsors: Provided, That these commercials and 
advertisements are actually delivered to the general public.
Sec. 8. Airtime Rates and Cost o f Space. - Broadcast media and print shall give 
ten percent (10%) lower airtime rates and cost of space for every paid feature of 
production or publication with educational content, as approved and certified by the 
Secretary of Education, Culture and Sports or any equivalent government agency, the 
difference from the regular rate shall be chargeable to the value-added tax accruable.
Sec. 9. Government Cooperation. - Every department, bureau, office, agency 
or instrumentality, of the government, including government-owned or controlled 
corporation, are enjoined to cooperate with private sector in order to achieve the 
objective of this Act.
Sec. 10. Separability Clause. - If any provision of this Act shall be declared 
unconstitutional, the other provisions which are not affected thereby shall continue in 
force and in effect.
Sec. 11. Repealing Clause. - Any law, act, decree, order, proclamation, regulation 
or any part thereof which is inconsistent with this Act is hereby repealed and modified 
accordingly.
Sec. 12. Effectivity Clause. - This Act shall take effect upon approval.
Approved,