Republic of the Philippines
Aouse of Representatives
Queean City

SIXTEENTH CONGRESS
Second Regular sow

HOUSE BILL NO.

Introduced by Representative EDGAR R. ERICE

EXPLANATORY NOTE

In 15 May 2013, Republic Act No. 10533, otherwise known as the ‘Enhanced
Basic Education Act of 2013," was enacted to provide an enhanced basic education
program that encompasses at least one (1) year of kindergarten education, six (6)
years of elementary education, and six (6) years of secondary education. Secondary
education will, starting from 2016, include four (4) years of junior high school and two
(2) years of senior high school education. RA 10533, in effect, added two more years
of learning so that Filipinos will be afforded more time to develop skills that would
enable them to be competitive not only within the Philippines, but more importantly,
in the international arena.

This additional two years of learning, inevitably carries with it additional cost to
the parents who, under the Family Code of the Philippines, are bound to give support
to their children, which includes schooling or training for some profession, trade or
voeation, even beyond the age of majority. Thus, the undersigned deems it only
reasonable for these parents to be granted reprieve by way of amending Section
35(B) of the National Internal Revenue Code (NIRC) of the Philippines to adjust the
age requirement of dependents for individual taxpayers’ availment of additional
exemptions. Presently, Section 35(B) of NIRC limits the availment of additional
exemptions for dependents to only those who, aside from being chiefly dependent
upon and living with the taxpayer, unmarried and not gainfully employed, must also
be not more than twenty-one (21) years of age. It bears emphasis, however, that by
virtue of RA 10553, dependents will only be able to finish college and be gainfully
employed, generally speaking, when they reached twenty-three (23) years of age. It
is only right, therefore, for the age requirement of dependents to be adjusted from
twenty-one (21) to twenty-three (23) years of age. The additional exemption in the
amount of Twenty-Five Thousand Pesos annually that would be saved by parents
will be of great help to finance the education and ensure a good future for their
dependents.

In view thereof, the passage of this bill is —-

4 District Caloocan City


Republic of the Philippines

House of Representatives

Quszon Gity
SIXTEENTH CONGRESS

Second Regular Session « g

HOUSE BILL NO. _

Introduced by Representative EDGAR R. ERICE

AN ACT
AMENDING SECTION 35(B), CHAPTER 7 OF REPUBLIC ACT NO. 8424,
OTHERWISE KNOWN AS “THE NATIONAL INTERNAL REVENUE CODE OF
THE PHILIPPINES.”

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

SECTION 1. Section 35(8), Chapter 7 of Republic Act No. 8424, otherwise
known as the National Internal Revenue Code of the Philippines, is hereby amended
to be read as follows:

Section 35. Allowance of Personal Exemption for Individual Taxpayer. -
XK

(B) Additional Exemption for Dependents. - There shall be allowed an
additional exemption of Twenty-five thousand pesos (25,000) for each
dependent not exceeding four (4).

“The additional exemption for dependents 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.

"For purposes of this Subsection, a ‘dependent’ means a legitimate,
illegitimate or legally adopted child chiefly dependent upon and living
with the taxpayer if such dependent is not more than TWENTY-
THREE (23) years of age, unmarried and not gainfully employed or if


such dependent, regardless of age, is incapable of self-support
because of mental or physical defect.

XXX

SECTION 2. Separability Clause. - If any provision of this Act shall be
declared unconstitutional, any other provision not affected thereby shall remain in full
force and effect.

SECTION 3. Aepealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary
to or inconsistent with the provision of this Act is hereby repealed, modified or
amended accordingly.

SECTION 4. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,