Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

6489
House BillNo.__° 489

introduced by Representatives.
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO.

—— SS

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”

IAT TE

This bill seeks to provide additional personat tax exemption to individual
taxpayers who take care of their elderty 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 their 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 suse that care for older persons is left in the hands
of family members.

Many family members today face economic difficulties due to high cos: of
living. In some instances, it is commen to find households where both spouses
work ta 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 individuais 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 ta 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 fo 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
eamestly sought.

DIOSDAD! APAGAL ARROYO ough MACAPAGAL ARROYO
Second District, Camarines Sur cond District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

House Bit! No,_ 8489

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and 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 GODE OF 1997”

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

SECTION 1. Paragraph (B) of Section 36 of Republic Act No. 8424. as
amended, is hereby further amended to read as follows:

“Sec. 36. Allowance of Personal Exemption for individual
Taxpayer. ~

A) in general. — 0%
200K 20K 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 martied individuals.


In the case af 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 gaintully emplayed
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 intemal 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,