Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
EXPLANATORY NOTE 
Our country is prone to various weather systems that causes massive floods and 
drought depending on the time of year and other natural calamities such as 
earthquakes, volcanic eruptions and landslides which causes death and destruction or 
damage to properties of the victims. 
To alleviate the sufferings of the victims and their families in the aftermath of 
calamities, there is a need to grant them a reasonable relief from their tax liabilities 
on their real properties affected by the calamity within a specified period of time to 
accelerate their pace of economic recovery. 
Current tax laws only provide relief for losses as a result of calamities only to 
individuals or corporations engaged in trade or business or practice of profession. 
Losses of property used in trade or business, resulting from fires, storms, or other 
casualties, which are actually sustained during the taxable year and not compensated 
for by insurance or other forms of indemnity can be claimed as deductions for income 
tax purposes. The amount of the deductible casualty loss is limited to the difference 
between the value of the property immediately preceding the casualty and its value 
thereafter. 
This bill seeks to grant additional tax relief to victims of calamities in the form of real 
property tax moratorium in the affected areas for two (2) fiscal years from the date 
of declaration of a state of calamity by the proper local sanggunian. Real properties 
covered by the moratorium are residential lands and buildings, commercial and 
industrial buildings, agricultural lands together with the plants and growing fruit trees 
thereon, and permanently installed machineries intended by the owners of the 
buildings or structures for an industry or business which may be carried on therein. 
In the case of donations, foreign assistance pouring in for victims of calamities are 
exempt from taxes and import duties if channeled through certain government 
agencies and state-accredited groups under Section 18 of Republic Act No. 10121 or 
the Philippine Disaster Risk Reduction and Management Act of 2010, in conjunction 
with Section 105 of the Tariff and Customs Code of the Philippines as amended. The 
Value-Added Tax (VAT) on the foreign aid would instead be shouldered by the 
August 1, 2022
5:12 pm
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Philippine government through budget reports and the tax expenditure fund from the 
General Appropriations Act. Meanwhile, local donations are also exempt from donor 
tax and deductible as an expense if properly accredited by the DSWD. 
 
This bill seeks to liberalize the requirements for the grant of donations, whether 
foreign or local, by simply requiring the declaration of a state of calamity by the proper 
sanggunian of the areas affected by calamities for the donations to be exempt from 
all types of taxes. To ensure proper monitoring by the government, it will only be 
required that said donations be properly certified by the DSWD. Tax exemptions on 
donations and assistance given to victims of calamities will further encourage donors 
and ensure a steady flow of donations to the victims. 
 
While the government depends upon taxation to serve the people for whose benefit 
taxes are collected, the government must also be sensitive to the needs of victims of 
natural calamities and assist in the alleviation of their serious economic dislocations. 
 
In view of the foregoing, the immediate consideration and passage of this bill is 
earnestly requested. 
 
 
 
 
JOSEPH “JOJO” L. LARA 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
AN ACT 
PROVIDING FOR TAX RELIEF DURING TIMES OF CALAMITY AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled. 
SECTION 1. Title. – This Act shall also be known as the “Calamity Tax Relief 
Act.” 
SECTION 2. Declaration of Policy. – It shall be the policy of the State to 
assist taxpayers in areas affected by natural calamities, through tax relief, to 
reasonably recover from the financial burden caused upon them by such natural 
disasters. In such cases of severe suffering of the people, there is a need to balance 
the government's primordial need for funds and the people's right to life, liberty, and 
property. Likewise, it shall also be the policy of the State to provide tax exemption to 
donations and assistance given to victims of calamities in order to encourage donors 
and for the Il maximum utilization of the donations extended. 
SECTION 3. Calamity Defined. – For purposes of this Act, 'calamity' shall 
mean a state of extreme distress or misfortune, produced by some adverse 
circumstance or event caused by natural forces such as, but not limited to, typhoons, 
earthquakes, volcanic eruptions, landslides or similar natural disasters. 
SECTION 4. Effects of Declaration of Calamity. – A declaration of a state 
of calamity by the proper local sanggunian shall make effective the following tax 
reliefs: 
a. The real property tax in the affected areas shall not be assessed and
collected for two (2) fiscal years, starting from the date of declaration of a
state of calamity: Provided, That real property shall refer only to residential
lands and buildings, commercial and industrial buildings, agricultural lands
together with the plants and growing fruit trees thereon, and permanently
installed machineries intended by the owners of the buildings or structures
for an industry or business which may be carried on therein;
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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: Provided, That the donation is certified by the Department of 
Social Welfare and Development (DSWD): Provided, further, That no more 
than ten percent (10%) of the said donation shall be used by the donee 
organization for administration purposes. 
 
SECTION 5. Implementing Rules and Regulations. – The Commissioner 
of the Bureau of Internal Revenue (BIR) shall, within thirty (30) days from the 
effectivity of this Act, promulgate the rules and regulations necessary for the effective 
implementation of this Act. 
 
SECTION 6. Separability Clause. – If, for any reason, any provision of this 
Act is declared unconstitutional or invalid, the other sections or provisions hereof which 
are not affected thereby shall continue to be in full force and effect. 
 
SECTION 7. Repealing Clause. – All laws, decrees, orders, rules and 
regulations or parts thereof, inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
 
SECTION 8. Effectivity Clause. – This Act shall take effect after fifteen (15) 
days following its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
 
Approved,