REPUBLIC OF THE PHILIPPINES:
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2900

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II

EXPLANATORY NOTE

In the Philippines, existing laws created several governmental agencies which have been carrying
out various responsibilities in the care of aging persons and persons with disabilities. This only
proves the country’s desire in putting forward the rights of elderly citizens and those suffering
from disabilities.

Apart from being concemed alone with the plight of aging persons and persons with disabilities,
parents who look after their aging dependents, and who raise their dependents with disabilities
should also be given enough consideration. Guardians must be entitled to claim for the additional
exemption for the reason that it is they who undeniably support and nurture these dependents. It
could not be concealed that families with aging dependents and dependents suffering from
disability need added resource specifically for their medication and therapy.

Thus, this measure seeks to provide additional economic reprieve to families, particularly
taxpayers who bear the responsibility of looking after their children, parents, and even persons
with disabilities by reducing tax burden. Moreover, this measure seeks to amend Section 35,
paragraph B of the National Internal Revenue Code of 1997, as amended by Republic Act 9504,
to take away four-dependent cap that a taxpayer may claim for deductions.

It is hoped that the passage of this measure will finally alleviate the plight of our taxpayers by
allowing them to cope with the cost of nobly caring for their dependents requiring special care,

In view of the foregoing, immediate enactment of this measure is earnestly sought.

Magdalo Parva Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Sessign

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

AN ACT
PROVIDING ADDITIONAL RELIEF TO FAMILIES WITH DEPENDENTS,
SUPPORTING AGING PARENTS AND DISABLED PERSONS

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 known as the “Additional Relief to
Families Act”.

SEC.2. Declaration of Policy and Objectives. — The State recognizes the Filipino family
as the foundation of the nation. Accordingly, it shall strengthen its solidarity and actively promote
its total development.

Further, the Constitution declares that the family has the duty to take care of its elderly
members but the State may also do so through just programs of social security.

Towards this end, Congress shall give highest priority to the enactment of measures that
will grant reprieves, and reduce social and economic inequalities by alleviating the financial
conditions of every family especially those with more children; individuals and families caring
for aging parents, and those who act as legal guardians to persons with mental or physical
handicap or disabilities.

SEC. 3. Additional Reliefs. - \n addition to the benefits granted under existing laws,
Section 35(B) of Republic Act No. 8424, otherwise known as the National Internal Revenue
Code of 1997, as amended by Republic Act No. 9504, is hereby further amended, to read as
follows:

“SEC. 35. Allowance of Personal Exemption for Individual Taxpayer.


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(A) In General. ~ For purposes of determining the tax provided in Section
24(A) of this title, there shall be allowed a basic personal exemption
amounting to Fifty thousand pesos (P50,000.00) for each individual
taxpayer.

In the case of married individual where only one of the spouses is

deriving gross income, only such spouse shall be allowed the personal tax

exemption.

(B) Additional Exemption for Dependents. ~ There shall be allowed an
additional exemption of Twenty-five thousand pesos (P25,000.00) for
each for each dependent [not exceeding four (4)]

For purposes of this Subsection, THE TERM [a] “dependent/S:”

SHALL mean{s a]:

1) ONE OR MORE UNMARRIED legitimate, LEGITIMATED,
illegitimate or legally adopted child NOT MORE THAN
TWENTY-ONE (21) YEARS OF AGE, [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] AND DEPENDENT UPON THE LATTER
FOR CHIEF SUPPORT, OR WHERE SUCH CHILD, regardless
of age, is incapable of self-support because of mental or physical
[defect]HANDICAP.

‘The additional exemption for dependents REFERRED HEREIN shall be

claimed by only one of the spouses in the case of unmarried individuals

In the case of legally separated spouses, additional exemptions may be

claimed only by the spouse who has custody of the child or children

[:Provided, that the total amount of additional exemptions that may be


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claimed by both shall not exceed the maximum additional exemptions

herein allowed]

2) A PARENT OR BOTH PARENTS, NOT GAINFULLY
EMPLOYED, LIVING WITH THE TAXPAYER, AND
DEPENDENT UPON THE LATTER FOR CHIEF SUPPORT,

OR WHERE SUCH PARENTS, REGARDLESS OF INCOME,
ARE INCAPABLE OF SELF-SUPPORTBECAUSE OF
MENTAL OR PHYSICAL HANDICAP.

AN INDIVIDUAL TAXPAYER WHO ACTS AS LEGAL

GUARDIAN TO A PERSON WITH MENTAL OR PHYSICAL

HANDICAP, REGARDLESS OF AGE AND INCAPABLE OF

SELF-SUPPORT, MAY CLAIM THE ADDITIONAL EXEMPTION

FOR THE SAID DEPENDENT: PROVIDED, THAT ONLY THE

LEGAL GUARDIAN CAN AVAIL OF THE ADDITIONAL

EXEMPTION FOR A PARTICULAR TAXABLE YEAR TO THE

EXCLUSION OF THE BIOLOGICAL PARENTS.

xxx”

SEC. 4. Penalty, — Notwithstanding the penalty provided for in Section 267 of the
National Internal Revenue Code of 1997, as amended, a person who willfully violates the
preceding section by declaring fictitious dependents shall, upon conviction, be liable for the
payment of a fine equivalent to thrice the amount of tax, interest and surcharges due from the
taxpayer.

SEC. 5. Implementing Rules and Regulations. — The Department of Finance in
coordination with the Bureau of Internal Revenue, and the Department of Social Welfare and
Development shall issue the necessary implementing rules and regulations within thirty (30)

days upon the approval of this Act.


SEC. 6. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
continue to be in full force and effect.

SEC. 7. Repealing Clause. — All laws, decrees, rules and regulations inconsistent
with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 8. Effectivity, — This Act shall take effect fifteen (15) days following its

publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,