Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

7703

HOUSE BILL NO.

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

Teachers have been at the forefront of every electoral exercise in the country. They render their
time and energy to protect the sanctity of the ballot and ensure the peaceful conduct of the
election. With their immense experience in carrying out this act of public service, teachers also
subject their lives to danger.

It is only appropriate that they must be properly compensated for their service and to ensure
that the compensation they will receive will not be encumbered by tax.

This proposed measure seeks to exempt compensation, such as allowances or honoraria,
eared by teachers serving in national and local elections from income tax to show appreciation
to teachers who are true public servants.

In view of the foregoing, the immediate passage of this bill is mopeamestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7703

Introduced by Rep. Winston “Winnie” Castelo

“AN ACT EXEMPTING FROM INCOME TAX COMPENSATION GIVEN TO TEACHERS FOR
‘SERVING AS MEMBERS OF THE ELECTORAL BOARD FOR LOCAL OR NATIONAL
ELECTIONS”

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

SECTION 1. It is a declared policy of the State to promote and uplift the economic status of
teachers and to recognize the public service they are rendering by serving in the Electoral
Boards during national and local elections.

SEC 2. Section 24 (A) (1) (a) of Republic Act No. 10963 provides that taxable income, as
defined, derived for each taxable year from all sources within and without the Philippines by
every individual citizen of the Philippines residing therein, shall be subject to income tax if the
taxable income is over P250,000.00. Section 32 of the National Internal Revenue Code of the
Philippines defines gross income to include compensation for services in whatever form paid,
including, but not limited to fees, salaries, wages, commissions, and similar items.

SEC 2. All compensation received by teachers for rendering services as part of the Electoral
Board for the national or local election shall not be included in the computation of gross income
and shall be exempt from income tax.

SEC 3. Compensation shall refer to per diem, honoraria, or allowances granted to the
Chairperson and members of the Board of Election Inspectors (BEI), Special Board of Election
Inspectors (SBE), Board of Election Tellers (BET), Special Board of Election Tellers (SBET),
hereinafter collectively referred to as “Electoral Boards.”

SEC. 3. Implementing Rules and Regulations - The Commissioner of the Bureau of Intemal
Revenue shall promulgate such rules and regulations as may be necessary to implement the
provision of this Act this within ninety (90) days after the effectivity of this Act.


SEC. 4. Separability Clause. - If any provision or section of this Act is held invalid or
unconstitutional, the other provisions and sections not affected thereby shall remain in full force
and effect.

SEC. 5. Repealing Clause. — All laws, presidential decrees, executive orders, or issuances, or
any part thereof which are inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or two (2) newspapers of general circulation.

Approved.