Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular ‘

HOUSE BILL NO.

Introduced by Honorable Erlinda M. Santiago

EXPLANATORY NOTE

This bill seeks to include incidental expenses in the exerci:
profession as additional allowable deductions from the annual taxable
income of teachers.

It is the policy of the State to recognize the vital role of teachers in
nation building. The service that they provide to our students is an essential
factor in the economic growth of our nation, As mentors, they mold the mind
of the youth to help them become active, informed and responsible citizens.
To ensure that our youth avail of quality and affordable education, our
government engages qualified, dedicated and intelligent teachers who act as
mentors and molders of our students in their daily undertaking in school
However, due to low salaries and lack of benefits for their services, teachers
are migrating to foreign lands to seek greener pastures or finding other
lucrative undertaking instead of dedicating their lives to the vocation of
teaching.

To prevent the migration of our teachers and losing them to other
undertakings, it is imperative for the government to address the financial
burden of teachers. One effective measure is to lessen the tax burden of
teachers. One way of doing this is to grant them additional allowable
deductions on their taxable income for incidental expenses they incur in the
exercise of their profession such as expenses for books, school supplies,
study tours, educational tours, conferences, seminars, training courses,
master and doctoral courses, and similar studies necessary in (heir teaching
profession and instructional activities. This (ax incentive will provide
financial relief to teachers and, in effect, will enhance their role as educators.

In view of the foregoing, approval of this bill is earnestly

recommended.
5a
RLINDA M. T1Ae



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

HOUSE BILL NO. 5484

Introduced by Honorable Erlinda M. Santiago

INCLUDING INCIDENTAL Ee oEs IN THE EXERCISE OF
PROFESSION AS ADDITIONAL ALLOWABLE DEDUCTIONS
FROM THE TAXABLE INCOME OF TEACHERS

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

SECTION 1. All incidental expenses incurred by teachers in the
exercise of their profession such as the purchase of books and school
supplies and payments for attendance in study or educational tours,
conferences, seminars, training courses, master and doctoral courses and
other continuing professional development programs during the taxable year,
shall be deducted from their annual gross taxable income. The allowable
deduction shall not exceed Fifty Thousand pesos (P50,000.00) per taxable
year. The expenses shall be substantiated with sufficient evidence, such as
official receipts which indicate the amount of the expenses being deducted
relative to the exercise of profession of teachers.

For purposes of this Act, teachers refer to all persons who are

engaged in the personal development of students through the classroom

instructional strategies from the kindergarten, elementary, high school and


college levels in all educational institutions including guidance counselors,
aides, head teachers and principals employed in any level of the public and
private educational institutions.

SEC. 2. The Commissioner of the Bureau of Interval Revenue shall, in

coordination with the Secretary of Education and the Chairperson of the

Commission on Higher Education, issue the necessary rules and regulations
for the effective implementation of this Act
SEC. 3. This Act shall take effect fifteen (15) days from its

publication in the Official Gazette or in a newspaper of general circulation

Approved,