Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No.__ 3584

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

This bill seeks to grant tax exemption to allowances and benefits granted to public
school teachers.

Undoubtedly, there is a great demand now for public school teachers in the rural areas
especially considering the shortage brought about lately by the exodus of teachers for
overseas employment. However, the difficulties of life in the rural areas, such as in
transportation, lodging or insurgency problem, to mention only a few, have discouraged
teachers to be employed there.

Thus, it is the sincere belief of the undersigned that with this privilege of tax
exemption on salary, more new teachers will be encouraged to accept teaching jobs in remote
areas, where usually vacancy of temporary nature exists. It will also encourage teachers to opt
to stay in the public school system where we need the brightest of them. It cannot be ignored
that the tax exemption on the income of teachers will mean extra money for them to spare for
their other needs

For the foregoing considerations, the approval of this bill is urgently requested.

Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

3584

House Bill No.

Introduced by Hon. Rodolfo G. Biazon

EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO
PUBLIC SCHOOL TEACHERS, INCLUDING THOSE IN THE STATE COLLEGES
AND UNIVERSITIES

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

SECTION 1. Short Title. - This Act shall be referred to as “The Public School
Teachers’ Tax Incentive Act”.

SEC. 2. Statement of Policy. - It is hereby declared the policy of the State to assign
the highest budgetary priority to education and ensure that teaching will attract and retain its
rightful share of the best available talents through adequate remuneration and other means of
job satisfaction and fulfillment.

It is further declared a policy and commitment of the State to promote and improve
the economic status of all public school teachers, including those in State colleges and
universities by increasing their take home pay through exemption from tax all allowances and
benefits granted to them.

SEC. 3. Exclusions from Gross Income. - All allowances and benefits granted to
public school teachers, including those in the State colleges and universities at all levels, shall

not be included in the computation of gross income and shall be exempt from taxation under
1


Title 111, Chapter VI of Republic Act No. 8424, otherwise known as the
1997”.

“Tax Reform Act of.

SEC. 4. Exemption from Attachment, Levy, and Execution. - All benefits and
allowances referred to herein shall likewise not be subject to attachment, levy, and execution.

SEC. 5. Rules and Regulations. - The Commissioner of the Bureau of Internal
Revenue is hereby authorized to promulgate such rules and regulations as may be necessary
to implement the provisions of this Act.

SEC. 6. Repealing Clause. - All laws, decrees, executive orders, letters of instruction,
letters of instruction, letters of implementation, rules and regulations, and other issuances
inconsistent with any provision of this Act are hereby repealed, modified, superseded or
amended accordingly.

SEC. 7. Separability Clause. - If any provision of this Act of the application of such
provision to any person or circumstance is held invalid for any reason, the remainder of this,
Act ot the application of such provision to other persons or circumstances shall not be
affected thereby.

SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in any two (2) newspapers of general circulation.

Approved,