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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. B. No. 257 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
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P5 :21 
Section 1, Article XV of our Constitution states that: "The State recognizes the Filipino 
family as the foundation of the nation. Accordingly, it shall strengthen its solidarity and actively 
promote its total development." 
The Family Care Act of2013 seeks to uphold our Constitutional commitment by granting 
reprieves, and reducing social and economic inequalities of every family especially those with 
many children. This bill proposes to remove the limitation on the number of qualified dependents 
that a taxpayer may claim for tax deduction. 
At present, a maximum of only four (4) qualified dependents may be claimed by 
qualified taxpayers as additional exemption at P25,000 per capita. 
This cap on the number of dependents was established in 1973 under Presidential Decree 
No. 69. At that time, in addition to generating more revenues, the government was bent on 
promoting family planning that, in effect, encourages the number of children for each family to 
only four. However, as supported by some economists, setting a limitation on the number of 
dependents has no clear bearing on the decision of couples to beget children. 
As a matter of fact, those in the higher income levels have fewer children than those in 
the lower income groups. According to the Commission on Population, most of those who have 
four or more children are in the lowest and second lowest wealth quartile. These groups are not 
even income taxpayers. 
In order to harmonize the Tax Code provision with the Family Code of the Philippines, as 
amended by Republic Act No. 9858, this bill will also include the category of legitimated 
children in the scope of qualified dependent children, whereby a child conceived and born 
outside of wedlock, under certain conditions, may be legitimated. 
Consistent with Section 4, Article XV which states that: "The family has the duty to care 
for its elderly members but the State may also do so through just programs of social security," 
this bill proposes to expand the coverage of qualified dependents to include parents or both 
parents with the following conditions: 
(1) the parent or parents should not be gainfully employed, they should be living 
with the taxpayer, and dependent upon the taxpayer for chief support; or 
(2) such parent or parents are incapable of self-support because of mental or 
physical disability. 
This bill alleviates the financial burden of individual taxpayers who support their parents 
by allowing them to claim their parents as additional dependents. This would consequently 
promote the Filipino value of taking care of the elderly. 


Lastly, this bill 'also proposes that taxpayers who act as legal guardian of a person with 
mental or physical disability, 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. It 
is a fact that the cost of taking care of a person with physical or mental disability is more than the 
expenses of rearing a healthy one. 
These proposals are also consistent with the present charters of the Philippine Health 
Insurance Corporation (PhilHealth), Government Service Insurance System (GSIS) and the 
Social Security System (SSS) which do not impose a cap on the number of dependents that can 
be claimed by the member. Likewise, parents and legitimated children are included as qualified 
dependents subject to certain conditions as stipulated in their respective charters. 
This bill is tantamount to addressing the inequalities and biases against large families; 
championing the cause of the mentally and physically challenged and those who take care of 
them; and supporting taxpayers who have unselfishly taken the cudgels of caring for dependent 
parents. 
Premises considered, the passage of this measure that will certainly alleviate the plight of 
many families is sincerely sought. 
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i>rnuti> 
SIXTEENTH CONGRESS OF THE 
) 
<&fh;r I}f Hl~ ~"nd~r~ 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
"13 
JUL -1 
P5 ;21 
SENATE 
S. B. No. 257 
Introduced by Senator Ralph G. Recto 
." 
AN ACT 
PROVIDING ADDITIONAL BENEFITS TO FAMILIES WITH DEPENDENTS, 
SUPPORTING AGING PARENTS AND PERSONS WITH DISABILITIES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Family Care Act of2013". 
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Sec. 2. Declaration of Policy and Objectives. - The State recognizes the Filipino family 
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as the foundation of the nation. Accordingly, it shall strengthen its solidarity and actively 
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promote its total development. 
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Further, the Constitution declares that the family has the duty to take care of its elderly 
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members but the State may also do so through just programs of social security. 
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Towards this end, Congress shall give highest priority to the enactment of measures that 
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will grant reprieves, and reduce social and economic inequalities by alleviating the financial 
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conditions of every family especially those with more children; individuals caring for aging 
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parents, and those who act as legal guardians to persons with mental or physical disability. 
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Sec. 3. Additional Tax Benefits. - In addition to the benefits granted under existing laws, 
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Section 35(B) of Republic Act No. 8424, otherwise known as the National Internal Revenue 
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Code of 1997, as amended by Republic Act No. 9504, is hereby further amended, to read as 
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follows: 
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"SEC. 35. Allowance of Personal Exemptionfor Individual Taxpayer. -
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"(A) In General. - For purposes of determining the tax provided in Section 
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24(A) of this Title, there shall be allowed a basic personal exemption amounting 
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to Fifty thousand pesos (P50,000) for each individual taxpayer. 
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"In the case of married individuals where only one of the spouses is deriving 
gross income, only such spouse shall be allowed the personal exemption. 
"(B) Additional Exemption for Dependents. - There shall be allowed an 
additional exemption of Twenty-five thousand pesos (P25,OOO) 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) 
DISABILITY. 
"The additional exemption for dependents REFERRED HEREIN shall be 
claimed by only one of the spouses in the case of married 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 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 ARE INCAPABLE 
OF SELF-SUPPORT BECAUSE OF MENTAL OR PHYSICAL DISABILITY. 
"AN INDIVIDUAL TAXPAYER WHO ACTS AS LEGAL GUARDIAN 
TO 
A 
PERSON 
WITH 
MENTAL 
OR 
PHYSICAL 
DISABILITY, 
REGARDLESS OF AGE AND INCAPABLE OF SELF-SUPPORT, MAY 
CLAIM THE ADDITIONAL EXEMPTION FOR THE SAID DEPENDENT: 
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PROVIDED, THAT ONLY THE LEGAL GUARDIAN CAN AVAIL OF THE 
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ADDITIONAL EXEMPTION FOR A PARTICULAR TAXABLE YEAR TO 
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THE EXCLUSION OF THE BIOLOGICAL PARENTS. 
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"xxx." 
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Sec. 4. Penalty. ~ Notwithstanding the penalty provided for in Section 267 of the 
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National Internal Revenue Code of 1997, as amended, any person who willfullX violates the 
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preceding section by declaring fictitious dependents shall, upon conviction, be liable for the 
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payment of a fine equivalent to thrice the amount of tax, interest and surcharges due from the 
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taxpayer. 
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Any government official or employee who knowingly and willfully conspire or collude 
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with any taxpayer by issuing any false certification, or those who do or fail to do any act with 
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intent to enable any taxpayer to violate this Act shall be punished with a fine of not less than 
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Fifty thousand pesos (PSO,OOO) but not more than One hundred thousand pesos (PIOO,OOO) and 
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imprisonment of not less than one (1) year but not more than five (5) years and perpetual 
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disqualification to hold public office. He shall also lose all the benefits due him as a result of his 
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service in the government, including the forfeiture of his separation and retirement benefits. 
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Sec. 5. Implementing Rules and Regulations. - The Department of Finance III 
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coordination with the Bureau of Internal Revenue, and the Department of Social Welfare and 
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Development shall issue the necessary implementing rules and regulations within thitty (30) days 
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upon the approval of this Act. 
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Sec. 6. Separability Clause. - If any provision of this Act is declared unconstitutional or 
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invalid, other parts or provisions hereof not affected thereby shall continue to be in full force and 
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effect. 
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Sec. 7. Repealing Clause. ~ All laws, decrees, rules and regulations inconsistent with the 
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provisions of this Act are hereby repealed, amended or modified accordingly. 
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Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
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in at least (2) newspapers of general circulation or the Official Gazette. 
Approved, 
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