Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House BillNo,__ 48.2

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

This bill seeks to grant tax exemption to 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 latély 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 to 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. It will also encourage teachers to opt
to stay in the public school system where we need the brightest of them. It cannot be ignored
that the tax exemption on the income of teachers will mean extra money for them to spare for
their other needs.

For the foregoing considerations, the approval of this bill is urgently requested

RODOLFO €. BIAZON
Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House BillNo.__4

Introduced by Hon. Rodolfo G. Biazon

EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO
PUBLIC SCHOOL TEACHERS, 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 School
‘Teachers’ Tax Incentive Act”.

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 further 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 from Gross Income. — All allowances and benefits granted to public
school teachers, including those in the State colleges and universities at all levels, shall not be

included in the computation of gross income and shall be exempt from taxation under Title


111, Chapter VI of Republic Act No. 8424, otherwise known as the “Tax Reform Act of
19977:
Sec. 4. Exemption from Attachment, Levy, and Execution. — All benefits and
allowances referred to herein shall likewise not be subject to attachment, levy, and execution.
Sec. 5. Rules and Regulations. ~ 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.

See. 6, Repealing Clause. — All laws, decrees, executive orders, letters of instruction,

letters of instruction, letters of implementation, rules and regulations, and other issuances

incons

stent with any provision of this Act are hereby repealed, modified,

iperseded 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 not be

affected there

Sec. 8. Fffectivity. — This Act shall take effect fifteen (15) days after its complete
publication in any two (2) newspapers of general circulation.

Approved,