THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
As repositories of wisdom and knowledge, the elders in tribal societies occupied 
places of high esteem. However, as time and society progress, the elderly denigrated to 
a somewhat less elevated position. 
This proposed measure aims to recognize the significant contribution of the 
elderly to our society during their younger years, by exempting them from paying the 
20% withholding tax on bank deposit income. 
By exempting them from paying the said tax, we would help them a lot, since 
most senior citizens derive a substantial portion of their income from the interest 
earnings of their savings and retirement benefits which they deposit in banks. 
In view of the foregoing, immediate passage of this bill is fervently sought. 


INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
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.
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AN ACT 
EXEMPTING THE BANK DEPOSITS OF SENIOR CITIZENS FROM THE 20% 
WITHHOLDING TAX ON INTEREST INCOME, AMENDING FOR THE 
PURPOSE OF THE REPUBLIC ACT NO. 7432 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 2. Title Section 4 of RA 7432 shall be amended to read as follows: 
"SECTION 4. Privileges for the Senior Citizens. - The 
senior citizens shall be entitled to the following: 
(a) the grant of twenty percent (20%) discount from all 
establishments relative to utilization of transportation 
services, hotels and similar lodging establishment's, 
restaurants and recreation centers, and purchase of 
medicine anywhere in the country: Provided, that private 
establishments may claim cost as tax credit; 
(b) a minimum of twenty percent (20%) discount on admission 
fees charged by theaters, cinema houses and concert halls, 
circuses, carnivals and other similar places of culture, 
leisure and amusement; 
(c) exemption from the payment of individual income taxes: 
Provided, that their annual taxable income does not exceed 
the property level as determined by the National Economic 
and Development Authority (VEDA) for that year; 
(d) exemption from training fees for socioeconomic programs 
undertaken by the OSCA as part of its work; 
free 
medical 
and 
dental 
services 
in 
government 
establishment anywhere in the country, subject to 
guidelines to be issued by the Department of Health, the 
Government Service Insurance System and the Social 
Security System; 
to the extent practicable and feasible, the continuance of 
the same benefits and privileges given by the Government 
Service Insurance System (GSIS), Social Security System 
(SSS) and PAG-IBIG, as the case may be, as are enjoyed by 
those in actual service; AND 
(G) EXEMPTION FROM THE 20% WITHHOLDING TAX ON 
INTEREST INCOME FROM BANK DEPOSITS, PROVIDED 
HOWEVER, THAT 
THE EXEMPTION FROM PAYING THE WITHHOLDING TAX 
SHOULD NOT EXCEED SIX HUNDRED THOUSAND 
PESOS (P600,OOO.OO); AND 
THE SENIOR CITIZEN SHOULD PRESENT TO THE MANAGER OF 
1) 
2) 


2 
THE BANK IN WHICH HE/SHE DEPOSITS HIS/HER 
MONEY HIS SENIOR CITIZEN'S ID AND A CERTIFICATE 
FROM THE CHIEF OF THE AGENCY/FIRM FROM 
WHICH HE RETIRED." 
SECTION 2. Separability Clause. - If any section or provision of this Act is 
declared unconstitutional or invalid, the provisions hereof which are not affected 
thereby shall continue to be in full force and effect. 
SECTION 3. Repealing Clause. - Laws, rules and regulations and other 
issuances inconsistent with the provisions of this Act are deemed modified, revoked or 
repealed accordingly. 
SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,