NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
FIRST REGULAR SESSION 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No._________ 
EXPLANATORY NOTE 
This bill was originally introduced as House Bill No. 3854 during the 15th Congress 
where it was approved by the Committee on Agrarian Reform and substituted with House Bill 
No. 6093. It was subsequently approved on 2nd reading, approved on 3rd reading and was 
transmitted to the Senate where it was not acted upon. It was re-filed during the 16th and 17th 
Congresses where it remained pending in the Committee. 
Agrarian Reform has affected the rights of countless landowners whose lands were 
taken some thirty-eight (38) years ago with the advent of Presidential Decree 27 
After the lapse of the 15 year payment period provided by PD 27, countless original 
landowners and their descendants still await full payment of just compensation. The years 
passed brought about many changes and amendments in the laws and orders relative to land 
valuation and payment procedures which have affected and made it more difficult to collect 
the just compensation due the landowners. 
The payment of just compensation has also been delayed because of administrative 
matters, documentation requirements as well as valuation issues that plague the government 
agencies involved. 
To make matters worse for these landowners, the payments as just compensation that 
they are to receive are still charged estate taxes, which at times exceed the amount of 
compensation offered for their properties. Many of these landowners already pass away 
without receiving just compensation leaving their descendants the tasks of awaiting payment 
only to discover that they still have to pay estate taxes. 
While the transfer of agricultural property taken by the government for land reform 
purposes is already exempted from the payment of capital gains taxes, there is likewise a 
compelling necessity to exempt the same form estate taxes should the original landowner die 
without being paid just compensation. 
In view of the foregoing, approval of this bill is earnestly sought. 
 RUFUS B. RODRIGUEZ 
November 24, 2022
6:08 pm
6379


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
FIRST REGULAR SESSION 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No._________ 
AN ACT 
EXEMPTING FROM ESTATE TAX THE UNPAID BALANCE OF JUST COMPENSATION 
DUE THE DECEDENT OWNER OR HIS/HER LEGAL HEIRS OR SUCCESSORS IN 
INTEREST    OF AGRICULTURAL LAND ACQUIRED BY THE GOVERNMENT UNDER 
PRESIDENTIAL DECREE NO. 27, EXECUTIVE ORDER NO. 228, EXECUTIVE ORDER NO. 
229, REPUBLIC ACT NO. 6657 AND REPUBLIC ACT NO. 9700 (COMPREHENSIVE 
AGRARIAN REFORM PROGRAM), AMENDING FOR THE PURPOSE SECTION 87 OF THE 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. 
Section 87 of the National Internal Revenue Code of 1997, as amended, is 
hereby further amended to read as follows: 
“SEC. 87. Exemption of Certain Acquisitions and Transmissions.  −  The 
following shall not be taxed: 
“(A) x   x   x; 
“(B) x   x   x; 
“(C) x   x   x; [and] 
“(D) x   x   x[.]; AND  
“(E) THE UNPAID BALANCE OF JUST COMPENSATION DUE THE 
DECEDENT OWNER OR HIS/HER LEGAL HEIRS OR SUCCESSORS IN 
INTEREST OF AGRICULTURAL LAND ACQUIRED BY THE GOVERNMENT BY 
VIRTUE OF PRESIDENTIAL            DECREE NO. 27, EXECUTIVE ORDER NO. 
228, EXECUTIVE ORDER NO.  229, REPUBLIC ACT NO. 6657 AND REPUBLIC 
ACT NO. 9700 (COMPREHENSIVE AGRARIAN REFORM PROGRAM).” 
SEC. 2. 
This Act shall take effect fifteen (15) days after its publication in at least two (2) 
newspapers of general circulation 
Approved, 
6379