Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17) CONGRESS
First Regular Session

HOUSE BILL NO.4067

Introduced by Representative Manuel Monsour T. Del Rosario ITT

EXPLANATORY NOTE

The National Internal Revenue Code (Republic Act No. 8424, as amended) grants an
individual income taxpayer additional exemption in the amount of P25,000,00 for each
dependent not exceeding four. However, the claim for additional exemption can no longer be
availed once any of the dependents dies, marries, reaches 21 years, or becomes gainfully
employed

Eventually, a taxpayer reaches a certain age where he can no longer claim any additional
exemption for his dependents once the limitations to avail of the tax exemption become
applicable, This situation becomes iniquitous since income taxpayers who reach old age should
be enjoying the benefits of their long years of hard work, instead of paying income taxes in the
dusk of their years.

Thus, it should behoove the state to provide income taxpayers who are senior citizens the
privilege to claim additional tax exemption equivalent to the maximum amount of exemption
allowed for dependents. Equity ordains that senior citizens who pay income taxes during their
twilight years should be allowed to claim additional tax exemption corresponding to that which
can be claimed by an income taxpayer in the prime of his life.

In view of the foregoing, approval of this bill is fervently sought

iPOD
MANUJY/MONSOUR T. DEL ROSARIO IIT


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17") CONGRESS
First Regular Session

HOUSE BILL No. 4967

Introduced by Representative Manuel Monsour T. Del Rosario IL

AN ACT GRANTING SENIOR CITIZENS ADDITIONAL EXEMPTION IN
DETERMINING INCOME TAX, FURTHER AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS
THE NATIONAL INTERNAL REVENUE CODE

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

Section 1. Section 35 of Republic Act No. 8424, as amended, otherwise known as the
National Internal Revenue Code, is hereby further amended to read as follows:

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

“(A) In General - For purposes of determining the tax provided in Section
24 (A) of this Title, there shall be allowed a basic personal exemption amounting
to Fifty Thousand Pé8os (P50}000) for each individual taxpayer.

“In the case of married individuals where only one of the spouses is
deriving gross income, only such spouse shall be allowed the personal exemption

“(B) Additional Exemption for Dependents - There shall be allowed an
additional exemption of Twenty-five thousand pesos (P25,000) for each
dependent not exceeding four (4).

“The additional exemption for dependent shall be claimed by only one of
the spousés in the case of married individuals.
In the casé'of legally separated spouses, additional exemptions may be claimed
only by thé 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
*€¥teed the'maximum additional exemptions herein allowed

“For purposes of this Subsection, a ‘dependent’ means a legitimate,
illegitimate or legally adopted child chiefly dependent upon and living with the
taxpayer if such dependent is not more than twenty-one (21) years of age,
unmarried and not gainfully employed or if such dependent, regardless of age, is
incapable of self-support because of mental or physical defect

“(C) Change of Status - If the taxpayer marries or should have additional
dependent(s) as defined above during the taxable year, the taxpayer may claim the
corresponding additional exemption, as the case may be, in full for such year,


“If the taxpayer dies during the taxable year, his estate may still claim the
personal and additional exemptions for himself and his dependent(s) as if he died
at the close of such year.

“If the spouse or any of the dependents dies or if any of such dependents
marries, becomes twenty-one (21) years old or becomes gainfully employed
during the taxable year, the taxpayer may still claim the same exemptions as if the
spouse or any of the dependents died, or as if such dependents married, became
twenty-one (21) years old or became gainfully employed at the close of such year.

“(D) Personal Exemption Allowable to Nonresident Alien Individual - A
nonresident alien individual engaged in trade, business or in the exercise of a
profession in the Philippines shall be entitled to a personal exemption in the
amount equal to the exemptions allowed in the income tax law in the country of
which he is a subject - or citizen, to citizens of the Philippines not residing in such
country, not to exceed the amount fixed in this Section as exemption for citizens
or resident of the Philippines: Provided, That said nonresident alien should file a
true and accurate return of the total income received by him from all sources in
the Philippines, as required by this Title

“(E) ALLOWABLE ADDITIONAL EXEMPTION FOR SENIOR
CITIZEN — AN INDIVIDUAL TAXPAYER WHO IS A SENIOR CITIZEN
SHALL BE ENTITLED TO AN ADDITIONAL EXEMPTION IN THE
AMOUNT EQUAL TO THE MAXIMUM ADDITIONAL EXEMPTIONS
ALLOWED FOR DEPENDENTS; PROVIDED, THAT THE ADDITIONAL
EXEMPTION SHAD B& CLAIMED BY ONLY ONE OF THE SPOUSES
IN THE CASE OF MARRIED INDIVIDUALS; AND: PROVIDED,
FURTHER, THAT THE CLAIM FOR ADDITIONAL EXEMPTION
SHALL BE DIVIDED EQUALLY BETWEEN THE SPOUSES IN CASE
THEY ARE LOGALLY SEPARATED.”

Section 2. Separability Clause. - If any provision or part of this Act, or the application
therof to any person or circumstances, is held invalid or unconstitutional, the remaining sections
of this Act or the application of such provision or part hereof to other persons or circumstance
shall remaitt in full force and effect.

Section 3. Repealing Clause. - All laws, decrees, orders, issuances, rules and regulations
or parts thereof incotisistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

Section 4. £fectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette and/or in two (2) newspapers of general circulation.

Approved,