Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS OF 
CHILDREN WITH SPECIAL NEEDS 
EXPLANATORY NOTE 
According to UNICEF and World Health Organization (WHO), there are more than 2.5 
billion people who need assistive products such as wheelchairs, hearing aids and other more 
products that are necessary for them1. In the Philippines, it is estimated that one out of seven or 
around 5.1 million Filipino people are living with disabilities2. 
Families of children with special needs are facing a lot more challenges in caring and 
supporting children with special needs, not only when it comes to emotional or moral support but 
also when it comes to financial aspects. They are more inclined to more expenditures such as 
expenses for evaluation and assessment fees, therapy, special education services which offer 
assistive technology or electronic devices to assist the child his or her learning.   
This bill aims to assist the concerns of families that have children with special needs with 
regard to finances. It seeks to grant tax deductions to parents and legal guardians of children with 
special needs.  
It is a challenge as it is to care and nurture a child with special needs, the State can 
alleviate this by granting them financial aid through the grant of tax deduction in favor of them. By 
doing so, it is not only the family members or the guardians who will benefit from this but more 
importantly, it is the child who will benefit from it.  
In view of the foregoing, the immediate approval of this bill is necessary. 
1 Almost one billion children and adults with disabilities and older persons in need of assistive technology 
denied access, according to new report at https://www.unicef.org/press-releases/almost-one-billion-
children-and-adults-disabilities-and-older-persons-need-assistive (last accessed on September 28, 2022). 
2 No Child Left Behind: Study calls for better care of children with disabilities at 
https://www.unicef.org/philippines/press-releases/no-child-left-behind-study-calls-better-care-children-
disabilities (last accessed on September 28, 2022). 
October 7, 2022
4:44 pm
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS OF 
CHILDREN WITH SPECIAL NEEDS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Declaration of Policy - It is the policy of the State to promote the right 
of every individual to relevant quality education regardless of sex, age, breed, socio-
economic status, physical and mental condition, social or ethnic origin, and political and 
other affiliation. Further, the State shall promote and maintain equality of access to 
education and medical care as well as the enjoyment of benefits of education by all its 
citizens. 
Sec 2. Children with Special Needs. – For the purposes of this Act, the term 
Children with Special Needs refer to those persons eighteen (18) years old and below 
who are mentally gifted or are fast learners; and those who are disabled, impaired, and 
handicapped and in need of special education as well as services for rehabilitation. They 
differ from the average children in mental characteristics, sensory abilities, neuro-
muscular or physical characteristics, social attributes, to such an extent that requires the 
use of modified school practices for special education services to develop them to 
maximum capability.  
Sec 3. Deduction from Taxable Income. - A qualified taxpayer is entitled to a 
deduction of Twenty Five percent (25%) of their expenses that qualify for deduction are: 
a. Tuition for a private school;
b. Therapy;
c. Diagnostic evaluations by a medical professional;
d. Tutoring;
e. Transportation expenses to school or a medical facility; and
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f. Specialized instructional materials. 
 
The parent or legal guardian must provide more than half of the total financial 
support for the child to qualify for the deduction. 
 
Sec 4. Implementing Rules and Regulations. - The Bureau of Internal Revenue 
(BIR) in consultation with the Department of Education's (DepEd) Special Education 
Division and Department of Health (DOH) shall issue such rules and regulations as may 
be necessary to carry out the purpose of this Act, within ninety days from its enactment. 
 
Sec 5. Appropriations. - The amount needed for the initial implementation of this 
Act shall be taken from the current year's appropriations of the BIR. Thereafter, such 
sums as may be necessary for its continued implementation shall. Be included in the 
annual General Appropriations Act. 
 
Sec 6. Separability Clause, - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect. 
 
Sec 7. Repealing Cause, - Any law, presidential decree or issuance, executive 
order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is 
hereby repealed or modified accordingly. 
 
Sec 8. Effectivity, - This Act shall take effect fifteen (15) days following its 
complete publication in a newspaper of general circulation. 
 
Approved,