SEVENTEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES ) |

First Regular Session ) 4

HOUSE OF hire ta

AN ACT
PROVIDING FOR TAX RELIEF IN TIMES OF CALAMITY.

EXPLANATORY NOTE

‘The aftermath of Typhoon Ondoy showed to the world the best of Filipino traits. Ordinary
citizens risked their lives to save strangers. Hard eared savings were given freely to charitable
organizations,

However, a few bureaucratic speed bumps were brought to light that impeded the steady flow of
donations. Multinationals and some individuals wanted to give huge sums to organizations to help aid the
calamity victims. But they would have to face paying a hefty sum for donor's tax. They can avail of
exemption if they give to charitable organizations but there are accreditation requirements before
exemption applies. They would also have to submit paperwork due to BIR audit procedures. Added to
this problem is the fact that not all organizations that have relief operations are accredited charitable
organizations.

‘This bill addresses all of these concerns. AS long as a calamity is declared by the proper
sanggunian, donations in favor of the victims shall be exempt from taxation notwithstanding the nature of
the business of the donee organization, No red tape will also hamper funds from coming in. ‘This bill is
based on the response of the United States

Congress in granting similar tax treatments in the wake of Hurricane Katrina.'

ay

HARRY L, ROQUE JR

' This bill was originally filedduring the Fourteenth Congress, Third Regular Session, and refiled by
Senator Miriam Defensor Santiago in the Sixteenth Congress, Third Regular Session.


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SEVENTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESFBIFATIVES
H.B. No. a”

Introduced by Harry L. Roque Jr.

AN ACT

PROVIDING FOR TAX RELI

F IN TIMES OF CALAMITY

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

SECTION 1. Calamity defined —For the purposes of this Act, Calamity” shall bedefined as a
state of extreme distress or misfortune, produced by some adverse circumstance orevent or any
great misfortune or cause or loss or misery caused by natural forces.

SECTION 2. Effect of Declaration of Calamity.—A declaration of a state of calamity by the
proper local Sanggunian shall make effective the following tax relief| A) The real property tax in the
affected area shall not be assessed and collected for two fiscal years, starting from the date of the
declaration of a state of calamity;

B) Any donation in the name of any organization that declares that the funds donated shall be in
favor of the victims of the calamity shall be exempt from donor's tax. This exemption from the donor's tax,
shall automatically apply and the Bureau of Internal Revenue shall not require any accreditation
requirements: Provided, however, that not more than 10% of the said gifts shall be used by the donee
organization for administration purposes.

SECTION 3. Separability Clause.— If any provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.


SECTIONS. Repealing Clause. ~ All laws, decrees, orders, and issuances, or portions thereof,
which are inconsistent with the provisions of this Act, are hereby repealed, amended or modified
accordingly.

SECTION 5. [effectivity Clause.This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in two (2) newspapers of general circulation

Approved,