FOURTEENTH CONGRESS OF THE REPUBLIC)  
OF THE PHILIPPINES 
)  
Third Regular Session 
)  
SEN~'~67
S.B. No. 
Introduced by Senator Miriam Defensor Santiago 
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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 earned 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 ifthey 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 ofthese 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 
corning in. This bill is based on the response of the United States Congress in granting similar 
tax treatments in the wake ofHurricane Katrina. 


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FOURTEENTH CONGRESS OF THE REPUBLIC)  
OF THE PHILIPPINES 
)  
Third Regular Session 
)  
SENAT~ 
S.B. No. 3467 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT PROVIDING FOR TAX RELIEF IN TIMES OF CALAMITY 
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Be it enacted by the Senate and House ofRepresentatives ofthe Philippines in Congress 
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assembled: 
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SECTION 1. Calamity defined. 
For the purposes of this Act, "Calamity" shall be 
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defined as a state of extreme distress or misfortune, proquced by some adverse circmnstance or 
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event or any great misfortune or cause or loss or misery caused by natural forces. 
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SECTION 2. Effect ofDeclaration ofCalamity. - A declaration of a state of calamity 
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by the proper local Sanggunian shall make effective the following tax relief: 
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A.) The real property tax in the affected area sh~ll not be assessed and collected for two 
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fiscal years, starting from the date ofthe declaration ofa state of calamity; 
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B.) Any donation in the name of any organization that declares that the funds donated 
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shall be in favor of the victims ofthe calamity shall be exempt from donor's tax. This exemption 
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from the donor's tax shall automatically apply and the'Bureau of Internal Revenue shall not 
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require any accreditation requirements: Provided, howevf!r, That not more than 10% of the said 
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gifts shall be used by the donee organization for administration purposes. 
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SECTION 3. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
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parts thereof inconsistent with the provisions of this :Act are hereby repealed, amended or 
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modified accordingly. 
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SECTION 4. Separability Clause. - If, for any reason, any provision of this Act is 
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declared to be unconstitutional or invalid, the other sections or provisions hereof which are not 
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affected thereby shall continue to be in full force and effect. 
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SECTION 5. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
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following its publication in the Official Gazette or in two (2) newspapers of general circulation. 
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Approved, 
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