Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

7523
House Bill No.

Introduced by Honorable ALFONSO V. UMALI JR.

EXPLANATORY NOTE

As we know, this New Corona Virus Disease (Covid 19)
pandemic is an unprecedented crisis which ravages our health
system and brings our economy down to the knees.

Amidst all the uncertainties brought by the pandemic and
armed with nothing but might and grit, our health workers,
police and military officers, social workers, civil defense
personnel, researchers, essential services providers, and others
who we collectively call as “frontliners,” continue to serve our
people. They are our heroes. Being in the forefront of this battle
is never an easy task. Fulfilling this task means risking not only
their own lives, but also those of their families.

Certainly, no amount of money can ever compensate their
efforts to be of service to the nation and commitment to fight and
win this battle. While some of these “frontliners” may be receiving
measly amount of “hazard pay” for each day of tireless service
and pure hard work, such amount is even subject to income
taxes as provided under the National Internal Revenue Code, as
amended by Republic Act No. 10963, otherwise known as the
“TRAIN Law.”


This Bill seeks to exclude the “hazard pay” earned by our
frontliners during or on occasion of national emergencies in the
computation of their gross income, thereby exempting the same
from income taxes, as manifestation of the government’s
appreciation and recognition of their contribution in our fight
against this pandemic and every national emergencies we might
face in the future.

In view thereof, early consideration and approval of this bill
is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. _?523

Introduced by Honorable ALFONSO V. UMALI JR.

“AN ACT EXCLUDING THE HAZARD PAY
EARNED DURING OR ON OCCASION OF A
NATIONAL EMERGENCY IN THE
COMPUTATION OF GROSS INCOME,

THEREBY AMENDING SECTION 9 OF
REPUBLIC ACT NO. 10963, OTHERWISE KNOWN AS
‘THE TAX REFORM FOR ACCELERATION AND INCLUSION
(TRAIN) LAW”

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

SECTION 1. Section 9 of Republic Act No. 10963, otherwise
known as the “Tax Reform for Acceleration and Inclusion (TRAIN)
Law,” is hereby amended as follows:

“Section 9. Section 32 of the NIRC, as amended, is hereby
further amended to read as follows:
“Sec. 32. Gross Income -
“(A) General Definition - x x x
“(B) Exclusions from Gross Income. - x x x
“(1)xxx
“(7) Miscellaneous Items -
“(a) xxx
“(f) Hazard Pay earned during or on occasion of a
National Emergency”


SECTION 2. For purposes of this Act, “Hazard Pay” shall mean
such amount which particular persons are entitled to receive
pursuant to a lawful issuance or order of a competent authority
on occasion of a National Emergency.

SECTION 3. Within the period of thirty (30) days from the
effectivity of this Act, the Bureau of Internal Revenue shall
promulgate the necessary rules and regulations for its effective
implementation.

SECTION 4. This Act shall take effect after fifteen (15) days from

its publication in the Official Gazette or in any newspaper of
general circulation.

Approved.