THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINE 
1 
First Regular Session 
) 
S. No. 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
In tribal societies of old, elders occupied places of high esteem as the 
repositories of the wealth of wisdom and knowledge considered essential for the 
survival of the tribe. In this modern day and age, printed media, audio-visual devices 
and computers have displaced the use of oral tradition in preserving and transmitting 
information, knowledge and folklore to the young. 
Thus the elderly have been 
denigrated to a somewhat less elevated position. 
Still, care for the elderly is 
enshrined in our Constitution to inculcate filial piety and humanitarian values among 
the young, as well as to acknowledge the contribution of the previous generation to 
the present. 
In consonance with this policy, Republic Act 7432 granted to senior citizens 
exemption from the payment of individual taxes on income up to a certain maximum to 
be determined by the national Economic Development Authority. 
The exemption 
however does not include the final 20% withholding tax on interest income from bank 
deposits. The failure to extend the exemption to bank deposit incomes is a violation of 
the spirit of the law especially because most senior citizens derive a substantial 
proportion of their income from the interest earnings on their savings and retirement 
benefits which are deposited in banks. 
This bill seeks to correct this oversight by explicitly providing for the above- 
described exemption. 
In view of the foregoing, early passage of this bill is earnestly requested 
SERGIO OSMENA III 
Senator 


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THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINE 
1 
First Regular Session 
1 
... 
S E N A T E  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
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AN ACT 
EXEMPTING THE BANK DEPOSITS OF SENIOR CITIZENS FROM THE TWENTY 
PERCENT (20%) WITHHOLDING TAX ON INTEREST INCOME, AMENDING FOR 
THE PURPOSE REPUBLIC ACT NUMBER 7423. 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
Section 1- Sec. 4 of RA 7423 shall be amended to read as follows: 
"SEC. 4. Privileges for the Senior citizens. - The senior citizens 
shall be entitled to the following: 
a) the grant of twenty percent (20%) discount from all establishments 
relative to utilization of transportation services, hotels, and similar 
lodging establishments, restaurants and recreation centers and 
purchase of medicine anywhere in the country: Provided, That private 
establishments may claim the cost as tax credit; 
b) a minimum of twenty percent (20%) discount on admission fees 
charged by theaters, cinema houses and concert halls, circuses, 
carnivals and other similar places of culture, leisure and amusement; 
c) exemption from the payment of individual income taxes: Provided, 
That their annual taxable income does not exceed the property level 
as determined by the National Economic Development Authority 
(NEDA) for that year; 


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d) exemption from training fees for socioeconomic programs undertaken 
by the OSCA as part of its work; 
e) free medical and dental services in government establishment 
anywhere in the country, subject to guidelines to be issued by the 
Department of Health, the Government Service Insurance System and 
the Social Security System; 
f) to the extent practicable and feasible, the continuance of the same 
benefits and privileges given by the Government Service Insurance 
System (GSIS), Social Security System (SSS) and PAG-IBIG as the 
case may be, as are enjoyed by those in actual service; AND 
g) EXEMPTION 
FROM 
THE 
TWENTY 
PERCENT 
(20%) 
WITHHOLDING TAX ON INTEREST INCOME FROM BANK 
DEPOSITS, PROVIDED HOWEVER, THAT 
1) THE AMOUNT OF DEPOSITS SUBJECT TO EXEMPTION FROM 
PAYING THE WITHHOLDING TAX SHOULD NOT EXCEED SIX 
HUNDRED THOUSAND PESOS (P 600,000.00); AND 
2) THE SENIOR CITIZEN SHOULD PRESENT TO THE MANAGER 
OF THE BANK IN WHICH HE/SHE DEPOSITS HIS/HER MONEY 
HIS SENIOR CITIZEN’S ID AND A CERTIFICATE FROM THE 
CHIEF OF THE AGENCY/FIRM FROM WHICH HE RETIRED. 
Sec. 2. Separability Clause. - If any sections or provisions thereof shall 
declared unconstitutional or invalid, the other sections or provisions thereof shall 
continue in full force and effect. 
Sec. 3. Repealing Clause. - Laws, rules and regulations and other 
issuances inconsistent with the provisions of this Act are deemed modified, 
revoked or repealed accordingly. 
Sec. 4. Effectivity. - This Act shall take effect upon its approval. 
Approved, 
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