NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES }
First Regular Session 
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of t;]f I?
‘22 JUL 12 All :00
SENATE
Introduced by Senator Maria Lourdes Nancy S. Binay
AN ACT GRANTING TAX INCENTIVES TO EMPLOYERS THAT HIRE 
FRESH GRADUATES FROM PROVINCIAL COLLEGES, UNIVERSITIES 
AND TRAINING CENTERS, APPROPRIATING FUNDS THEREFOR 
AND FOR OTHER PURPOSES
EXPUNATORY NOTE
This bill seeks to help students graduating from provincial colleges and 
universities to access jobs and training opportunities by granting tax incentives to 
employers encouraging the latter to hire equally competent fresh graduates all over 
the country.
In view of the foregoing, the passage of this bill is earnestly sought.
MARIA LOURDES NANCY S. BINAY


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES
First Regular Session
of i';'.' ftarp
72 JUL 12 All ’01
SENATE
Introduced by Senator Maria Lourdes Nancy S. Binay
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AN ACT GRANTING TAX INCENTIVES TO EMPLOYERS THAT HIRE 
FRESH GRADUATES FROM PROVINCIAL COLLEGES, UNIVERSITIES 
AND TRAINING CENTERS, APPROPRIATING FUNDS THEREFOR 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
SECTION 1. Short Titie, - This Act shall be known as the "Fresh Graduates 
Incentives Act.”
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
adopt measures to ensure the welfare and protect the interest of the youth, 
particularly, fresh graduates. Thus, it shall endeavor to improve opportunities and 
widen their access to employment.
SEC. 3. Definition of Terms. - For purposes of this Act, the term:
(a) "Fresh Graduates" refers to a Filipino citizen who is not gainfully 
employed and has just graduated from a tertiary educational institution 
accredited by the by the Commission on Fligher Education. Fresh 
graduates shall include Filipino citizens, not gainfully employed and has 
just finished a vocational course from schools and training centers 
accredited by the Technical Education and Skills Development Authority.
(b) "Provincial Colleges, Universities, and Training Centers"vefer to tertiary 
educational institutions accredited by the Commission on Higher 
Education and educational institutions offering vocational and technical 
courses accredited by the Technical Education and Skills Development 
Authority from the Autonomous Regions and Provinces with 
municipalities with an average annual Income of not more than fifty 
million pesos (P50,000,000.00).
SEC. 4. Deductions ifom Taxable Income. - As an incentive to companies and 
employers to hire fresh graduates from recognized Provincial Colleges, Universities,


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and Training Centers, a deduction from the computation of taxable income equivalent 
to ten percent (10%) of the fresh graduate's starting gross salary; Provided, however, 
that the tax deductions shall not exceed ten (10%) of its taxable Income; Provided, 
further, that the tax deduction under this section shall be evidenced by a certified true 
copy of the fresh graduate's diploma, certification or document issued by the 
educational, vocational or technical institution from which he or she has graduated.
SEC. 5. Implementing Rules and Regulations. - The departments and agencies 
charged with the carrying out the provisions of this Act shall within sixty (60) days 
after the effectivity of this Act, formulate the necessary rules and regulations for its 
effective implementation.
SEC. 6. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
rules and regulations and other issuance of parts thereof. Inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.
SEC. 7. Separability Clause. - If, for any reason, any section or provision of this 
Act is held unconstitutional or Invalid, the other sections or provisions hereof shall not 
be affected thereby.
SEC. 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or two (2) newspapers of general circulation.
Approved,