vd SS SENTATIVES

Republic of the Philippines RVECEINETD
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH CONGRESS
First Regular Session

ATON UNE
52 OR SERV

House Bill No.

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING ADDITIONAL PERSONAL EXEMPTION FOR INDIVIDUAL TAXPAYERS
WHO TAKE CARE OF THEIR ELDERLY PARENTS, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE “NATIONAL.
INTERNAL REVENUE CODE OF 1997”

EXPLANATORY NOTE

This bill seeks to provide additional personal tax exemption to individual taxpayers who take
care of their elderly parents

One praiseworthy Filipino value is devotion to family ties. Married children take care of their
parents by supporting them during their twilight years as an act of gratitude for all pains and
sacrifices. Thus, it is not surprising to see family members who provide their aging parents a
wide array of assistance from medications, adult healthcare and in some cases, medical
procedures. And since family is the backbone of the long-term health care system in the
Philippines, we always make sure that care for older persons is left in the hands of family
members.

Many family members today face economic difficulties due to high cost of living. In some
instances, it is common to find households where both spouses work to support their
children and provide care for their aging parents. Despite entailing additional expenses in
looking after their elderly parents, it doesn't seem to matter for the ordinary Filipino family
who would rather personally take care of them rather than entrusting them to other people.

Republic Act No. 7432 entitled, “An Act to Maximize the Contribution of Senior Citizens to
Nation-Building, Grant Benefits and Special Privileges and For Other Purposes,” was
enacted to give assistance to individuals who take care of their elderly parents. It allows a
taxpayer, who is head of the family, to include a senior citizen as a dependent under the
National Internal Revenue Code or the NIRC. However, this privilege was not expressly
provided under Republic Act No. 8424 or the NIRC of 1997 and in any of its implementing
rules and regulations. Hence, there is a need to legislate anew this matter by incorporating it
in RA 8424, as amended, in order for individual taxpayers to fully avail of this additional tax
exemption.


By including parents who are senior citizens as dependents, the State relieves taxpayers
from tax burden and allows them to save money which can be used to meet the nutrition,
education, medicines and other basic needs of other dependents

In view of the foregoing, immediate approval of this bill into law is earnestly sought.

2" District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

1522

House Bill No.

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING ADDITIONAL PERSONAL EXEMPTION FOR INDIVIDUAL
TAXPAYERS WHO TAKE CARE OF THEIR ELDERLY PARENTS, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE
KNOWN AS THE “NATIONAL INTERNAL REVENUE CODE OF 1997”

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Paragraph (B) of Section 35 of Republic Act No. 8424, as
amended, is hereby further amended to read as follows:

“Sec, 35. Allowance of Personal Exemption for Individual
Taxpayer. —

A) In general. — xxx
XXX XXX Xxx
B) Additional Exemption for Dependents. — There shall be
allowed an additional exemption of Twenty-Five Thousand
Pesos (P25,000.00) for each dependent CHILD not exceeding
four (4).

The additional exemption for dependents shall be claimed by
only one of the spouses in the case of married individuals.


In the case of legally separated spouses, additional exemptions
may be claimed only by the spouse who has custody of the
child or children: Provided, That the total amount of additional
exemptions that may be claimed by both shall not exceed the
maximum additional exemptions herein allowed

AN ADDITIONAL EXEMPTION OF TWENTY-FIVE
THOUSAND PESOS (P25,000.00) FOR EACH ELDERLY
PARENT SHALL LIKEWISE BE ALLOWED TO THE
INDIVIDUAL TAXPAYER: PROVIDED, THAT THE ELDERLY
PARENT IS CHIEFLY DEPENDENT ON AND LIVING WITH
THE TAXPAYER.

For purpose of this subsection, a “dependent” means a
legitimate, illegitimate or legally adopted child chiefly dependent
upon living with the taxpayer if such dependent is not more than
twenty-one years of age, unmarried and not gainfully employed
or AN ELDERLY PARENT WHO IS AT LEAST SIXTY (60)
YEARS OLD WITH NO MEANS OF SUPPORT OR if such
dependent, regardless of age, is incapable of self-support
because of mental or physical defect.”

SECTION 2. The Commissioner of the Bureau of Internal Revenue shall
issue the necessary rules and regulations for the effective implementation of this
Act.

SECTION 3. This Act shall take effect fifteen (15) days following its

Publication in the Official Gazette or in at least two (2) national newspapers of
general circulation

Approved,