16th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Firs! Regular Session 
) 
SENATE 
S.B. No. 2228 
Introduced by Senator SONNY M. ANGARA 
AN ACT 
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'14 
MAYl5 P4:21 
ALLOWING EXPENSES INCURRED AS PAYMENTS FOR TERTIARY EDUCATION 
TUITION AND ALLIED EXPENSES AS DEDUCTIONS FROM GROSS INCOME OF 
INDIVIDUALS, AMENDING FOR THE PURPOSE SECTION 34 OF THE NATIONAL 
INTERNAL REVENUE CODE OF THE PHILIPPINES, AS AMENDED. 
EXPLANATORY NOTE 
Article 2, Section 17 of the Constitution provides that the "State shall give priority to 
education, science and technology, arts and sports to foster patriotism, nationalism, accelerate 
social progress a~d promote total human liberation and development". In addition, Article 4, 
Section I of the Constitution also mandates that the State should "protect and promote the right 
of all citizens to quality education at all levels, and shall take appropriate steps to make such 
education accessible to all." It is therefore imperative for the State to promote and enhance 
opportunities for accessible quality education. 
Based on the Annual Poverty Indicator Survey released by the National Statistics Office 
in 2011, 6.24 million out of the 39 million Filipinos aged between 6 and 24 are out-of-school 
youth COSY), those who are not attending formal school or have not finished college or post-
secondary courses. The same report also indicates that 28.9% of high school graduates could not 
attend college because of its high cost. Thus, access to tertiary education in the country remains 
problematic and elusive, especially to the poor and underprivileged. 
This bill seeks to appease this problem by providing that matriculation fees for tertiary 
education and allied educational expenses shall be tax deductible from the gross income of the 
taxpayer. Such initiative is aimed to encourage and assist the students or his parents or any other 
person having parental authority or exercising substitute parental authority pay tertiary 
matriculation fees and allied expenses including post secondary courses from higher educational 
ami technical and vocational institutions. 
' 
In view of the foregoing, immediate passage of this bill is earnestly sought. 


16th CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 2228 
Introduced by Senator SONNY M. ANGARA 
AN ACT 
"14 
HAY 15 P 4 :21 
ALLOWING EXPENSES INCURRED AS PAYMENTS FOR TERTIARY EDUCATION 
TUITION AND ALLIED EXPENSES AS DEDUCTIONS FROM GROSS INCOME OF 
INDIVIDUALS, AMENDING FOR THE PURPOSE SECTION 34 OF THE NATIONAL 
INTERNAL REVENUE CODE OF THE PHILIPPINES, AS AMENDED. 
Be It enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 34 of the National Internal Revenue Code (NIRC), as amended, is 
2 
hereby further amended to read as follows: 
3 
SEC. 34. 
Deductions from Gross Income. 
Except for taxpayers earnmg 
4 
compensation income arising from personal services rendered under an employer-employee 
5 
relationship where no deductions shall be allowed under this Section other than under 
6 
Subsection (M) AND (N) hereof, in computing taxable income subject to income tax under 
7 
Sections 24(A); 26; 27(A), (B), and (C); and 28(A)(I), there shall be allowed the following 
8 
deductions from gross income: 
9 
(A) Expenses. -
10 
(I) Ordinary and Necessary Trade, Business or Professional Expenses. XXx. 
11 
(M) Premium Payments on Health and/or Hospitalization Insurance of an 
12 
Iildividual Taxpayer. - XXX. 
13 
(N) PAYMENTS FOR TERTIARY EDUCATION TUITION FEES 
14 
AND ALLIED EDUCATIONAL EXPENSES. 
- EXPENSES INCURRED 
15 
BY A PERSON, OR ANY OTHER PERSON HAVING PARENTAL 
16 
AUTHORITY OR EXERCISING SUBSTITUTE PARENTAL AUTHORITY FOR 
17 
PURPOSES OF SHOULDERING TERTIARY EDUCATION TUITION FEES 
18 
AND ALLIED EXPENSES, FOR HIMSELF OR FOR HIS DEPENDENT DULY 
19 
ENROLLED IN A QUALIFIED EDUCATIONAL INSTITUTION AS MAY BE 
20 
DEFINED BY EXISTING LAWS: PROVIDED, THAT THE DEDUCTION 
1 


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, , 
SHALL NOT EXCEED FORTY THOUSAND PESOS (P40,000) FOR HIMSELF 
OR FOR EACH DEPENDENT NOT EXCEEDING FOUR (4) FOR THE 
TAXABLE YEAR: PROVIDED, FINALLY, THAT TERTIARY EDUCATION 
SHALL 
INCLUDE 
POST 
SECONDARY 
COURSES 
FROM 
HIGHER 
EDUCATIONAL AND TECHNICAL AND VOCATIONAL INSTITUTIONS 
THE DEDUCTIONS FOR TERTIARY EDUCATION OF DEPENDENTS SHALL 
BE CLAIMED BY ONLY ONE OF THE SPOUSES IN THE CASE OF 
MARRIED INDIVIDUALS. IN THE CASE OF LEGALLY SEPARATED 
SpOUSES, THE DEDUCTION MAY ONLY BE AVAILED BY THE SPOUSE 
WHO HAS CUSTODY OF THE DEPENDENT. 
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. 
SEC. 2. The necessary implementing rules and regulations (IRR) for purposes of this 
Act shall be jointly issued by the Commission on Higher Education (CHED), the Technical 
Education and Skills Development Authority (TESDA) and the Bureau of Internal Revenue 
(BIR), within sixty (60) days from its effectivity. 
SEC. 3. 
All laws, decrees, executive orders or any other issuances or parts thereof 
which are inconsistent with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
SEC. 4. If any provision of this Act is held invalid or unconstitutional, any other 
provision not affected shall continue to be in full force and effect. 
SEC. 5. This Act shall take effect fifteen (15) days after its complete publication in the 
Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
2