FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 773 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
ExpLANATORY NOTE 
The world has been gripped with fears of a global economic meltdown. 
The problem has been so severe that stock markets have fallen, large financial 
institutions have collapsed or been bought out, and governments in even the 
wealthiest nations have had to come up with rescue packages to bail out their 
financial systems and restore trust which has weakened considerably. 
Inescapably, the extent of these financial problems will affect the livelihoods of 
almost everyone in our increasingly inter-connected world. 
Now is the time to take the first important step toward meeting the need 
for confidence building initiatives against the financial crisis. Measures must be in 
place to strengthen the public's trust in the banking system, and more 
importantly, to secure employment and income during these tough and trying 
times. 
Thus, this proposed measure seeks to introduce transitory measures that 
will provide small saver and consumer relief and stability, build confidence in the 
financial system and encourage job creation in the private sector. Specifically, a 
one-time stimulus income tax refund to the maximum amount of Php5,000.00 for 
all fixed income earners who paid income taxes is proposed. Likewise, a gO-day 
moratorium on home foreclosures is introduced to provide temporary relief to 
home buyers and the non-imposition of fees and charges as penalties for early 
withdrawal of short term deposits is proposed, with the intention of providing 
support to small saver households experiencing cash flow problems during these 
lean times. Finally, a 3-year program extending income tax credits for employers 
hiring additional regular or permanent employees is instituted under the proposed 
bill. Thus, for each additional regular or permanent employee hired for at least 1 
year, any employer is entitled to ~ maximum income tax credit equivalent to 30 % 
of annual salary of said employee. The creation of this program will stimulate job 
creation even in lean times, at the same time rewarding employers who continue 
to see the longer term. 
In view of the foregoing, approval of this bill is earnestly requested. 
Senator 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 773 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
INTRODUCING TRANSITORY MEASURES TO PROVIDE CONSUMER AND 
SMALL SAVER RELIEF, PROMOTE INDIVIDUAL ECONOMIC STABILITY 
AND BUILD INDIVIDUAL CONFIDENCE BY PROVIDING A STIMULUS TAX 
REFUND TO FIXED INCOME EARNERS, PROTECTING INTERESTS OF 
DEPOSITORS OF BANKS AND OF HOME OWNERS, AND, GIVING TAX 
CREDIT INCENTIVES TO EMPLOYERS WHO PROVIDE NEW PERMANENT 
JOBS, AND FOR OTHER PURPPSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. This Act shall be known as the "Transitory Individual 
Economic Stability and Confidence Building Measures Act of 2010. " 
SEC. 2. One Time Income Tax Refund for All Fixed Income Earners. -
Notwithstanding the provisions of Republic Act No. 8424, otherwise known as the 
National Internal Revenue Code, as amended, and other applicable laws, there 
shall be allowed a one time income tax refund for all fixed income earners to the 
maximum amount of Five Thousand Pesos (Php5,OOO.00). In the event that the 
income tax due of the fixed income earner is less than the maximum amount of 
Five Thousand Pesos (Php5,OOO.00), then the one time tax refund shall be equal 
to the income tax due. This income tax refund shall be applicable only to 
calendar year ending in 2010. 
The Department of Finance and the Bureau of Internal Revenue shall 
issue the appropriate implementing rules and regulations to govern this proVision 
within a period of thirty (30) days from the effectivity of this Act. 
SEC. 
3. 
Ninety Day Moratorium 
on Home Foreclosures. 
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Notwithstanding the provisions of Republic Act No. 9507, otherwise known as the 
"Socialized and Low-Cost Housing Loan Restructuring and Condonation Act of 
200B," and, other applicable laws, there shall be a moratorium on foreclosure of 
homes, for a period of ninety (90) days from the effectivity of this Act. All relevant 
government agencies shall respect the right of home owners to be secure in their 
mortgaged homes during this ninety day (90) moratorium period. 
SEC. 4. Non-Imposition of Penalties for Early Withdrawal. -
Notwithstanding the provisions of Republic Act No. 6753, otherwise known as 
The New Central Bank Act, as amended, and, other related laws, all banks shall 
not be allowed to impose any charges or fees representing penalties for early 


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withdrawal by any depositor who decides to withdraw his money in whole or in 
part, unless such deposit was made for a period of five (5) years or more. 
SEC. 5. Income Tax Credits for Employers Who Hire Additional 
Regular or Permanent Employees. - Notwithstanding the provisions of 
Republic Act No. 8424, otherwise known as the National Internal Revenue Code, 
as amended, and other applicable laws, there shall be allowed, for any person 
who hires or employs one or morl? additional regular employees for at least one 
year, an income tax credit equiva,lent to thirty percent (30%) of the gross annual 
salary of each additional regular or permanent employee, Without prejudice to 
the applicability of such salary expense of said additional regular or permanent 
employees as a deduction against gross revenues of the employer in the 
computation of income tax due, this income tax credit may be automatically 
applied by the employer against its income tax due. If after application of all the 
applicable income tax credits the income tax due is zero, then no income tax due 
shall be deemed payable and due. Any excess income tax credits may be carried 
over in the succeeding period. This treatment of income tax credit for additional 
regular or permanent employees shall be applicable for a period of three (3) 
years from the effectivity of this, Act and shall apply for the whole of the last 
calendar year of the third year of the three year period. For the purpose of this 
Section, an additional regular or permanent employee shall refer to any person 
newly hired to provide services that are necessary or desirable in the usual 
business of a company in exchange for compensation and who does not provide 
these services as part of an independent business, Provided that the 
employment of such person should be for a newly created position in addition to 
the existing staffing requirements of the company. 
The Department of Finance and the Bureau of Internal Revenue shall 
issue the appropriate implementing rules and regulations to govern this provision 
within a period of thirty (30) days from the effectivity of this Act. 
SEC. 6. Separability Clause, - If, for any reason, any section or provision 
of this Act shall be held unconstitutional or invalid, the other section or provision 
not otherwise affected shall remain in full force and effect. 
SEC. 7. Repealing Clause. - All laws, presidential decrees, executive 
orders, proclamations, rules and regulations which are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 8. Effectivity Clause. - This Act shall take effect fifteen (15) days 
from its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved,