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

EIGHTEENTH CONGRESS
First Regular Session

0527
House Bill No. |

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

EXPLANATORY NOTE

In recognition of the fact that differently abled persons are as much part of our society
as everyone else, itis the policy of the State to give full support to the improvement of the total
well-being of disabled persons and their integration into the mainstream of society;

To this end, various laws have been enacted in order to uplift the lives and advance the
interests of differently abled persons. However, we often overlook the fact that equal
Tecognition must also be given to the parents of these differently abled persons who have to
ut in extra effort in raising their children because of their children’s special needs. Itis for this
reason that this bill, a re-filing of House Bill No. 352 of DIWA Party-list during the 17
Congress, seeks to provide tax deductions to the parents and legal guardians of children with
special needs.

MICHAEL  AGLIPAY
Representétive, DIWA Party-list

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

EIGHTEENTH CONGRESS
First Regular Session

No,0527

House

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

AN ACT GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL
GUARDIANS OF CHILDREN WITH SPECIAL NEEDS

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

SECTION 1. Declaration of Policy. - It is the policy of the State to promote the right
of every individual to relevant quality education regardless of sex, age, breed, socio-economic
status, physical and mental condition, social or ethnic origin, political and other affiliation.
Further, the State shall promote and maintain equality of access to education and medical care
as well as the enjoyment of benefits of education by all its citizens

SECTION 2. Definition. - For the purposes of this Act, these terms are defined as
follows:

Autism - A developmental disability significantly affecting verbal and nonverbal
communication and social interaction, generally evident before age three (3) that adversely
affects a child's educational performance, Other characteristics often associated with autism
are engagement in repetitive activities and stereotyped movements, resistance to environmental
change or change in daily routines, and unusual responses to sensory experiences. The term
does not apply if a child's educational performance is adversely affected because the child has
an emotional disturbance

Deafness - A hearing impairment that is so severe that the child is impaired in
processing linguistic information through hearing, with or without amplification that adversely
affects a child's educational performance.

Emotional Disturbance - A condition exhibiting one or more of the following

characteristics over a long period of time and to a marked degree that adversely affects a child's
educational performance:

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A. An inability to learn that cannot be explained by intellectual/sensory or
health factors;

B. An inability to build or maintain satisfactory interpersonal relationships
with peers and teachers;

C. Inappropriate types of behaviors or feelings under normal
circumstances;

D. A general pervasive mood of unhappiness or depression:

E. A tendency to develop physical symptoms or fears associated with
personal or school problems.

The term includes schizophrenia. The term does not apply to children who are socially
maladjusted, unless it is determined that they have an emotional disturbance.

Hearing Impaired - impairment in hearing, whether permanent or fluctuating, that
adversely affects a child's performance.

Intellectually Disabled - Significantly sub-average general intellectual functioning
existing concurrently with deficits in adaptive behavior and manifested during the
developmental period that adversely affects a child's performance.

Orthopedic Impairment - A severe orthopedic impairment that adversely affects a
child's educational performance. The term includes impairments caused by congenital anomaly
(eg. club foot, absence of some member), impairments caused by disease (e2.,
poliomyelitis/bone tuberculosis), and impairments from other causes (e.g. cerebral palsy,
amputations, and fractures or bums that cause contractures).

Qualified Children with Special Needs - means a legitimate, illegitimate or legally
adopted child chiefly dependent and living with the taxpayer. This also covers children with
special needs who are placed under the legal custody of an immediate family member or
relative, The child should not be more than 13 years of age and must be assessed by the
Department of Education's Special Education Division and a medical professional in order to
qualify.

Provided, however, that children who are permanently disabled and who are unable to
fully take care for themselves are qualified no matter how old they are.

This does not cover children considered mentally gifted or fast learners.

Specific teaming Disability - A disorder in one or more of the basic physiological
processes involved in understanding or in using language, spoken or written, which may
manifest itself in the imperfect ability to liste’ think/speak/read, write, spell or do
mathematical calculations. Such term includes conditions such as perceptual disabilities, brain
injury, minimal brain dysfunction, dyslexia, and developmental aphasia.

Speech or Language Impaired - communication disorder such as stuttering impaired
articulation, language impairment, or a voice impairment that adversely affects a child's
educational performance.

‘Traumatic Brain Injury - An acquired injury to the brain caused by an external physical
force, resulting in total or partial functional disability or psychosocial impairment or both, and

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that adversely affects a child's educational performance. The term applies to open or closed
head injuries resulting in impairments in one or more areas, such as cognition, language,
memory, attention, reasoning, abstract thinking, judgment, problem solving, sensory,
perceptual and motor abilities, psychosocial behavior physical functions, information
processing, and speech. The term does not apply to brain injuries that are congenital or
degenerative or to brain injuries induced by birth trauma.

Visual Impairment - impairment in vision that, even with correction adversely affects a
child's educational performance. The term includes both partial and sight blindness.

SECTION 3. Deduction from Taxable Income. - A qualified taxpayer is entitled to a
deduction of P50,000. Expenses that qualify for a deduction are’

* Tuition for a private school;

‘© Therapy;

‘* Diagnostic evaluations by a medical professional;

* Tutoring:

‘* Transportation expenses to school or a medical facility;
‘Specialized instructional materials.

The parent or legal guardian must provide more than half of the total financial support
for the child to qualify for the deduction.

SECTION 4. Implementation. - The Bureau of Internal Revenue in consultation with
the Department of Education's Special Education Division and Department of Health shall
issue such rules and regulations as may be necessary to carry out the purpose of this Act

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette and two (2) newspapers with a nationwide circulation.

Approved,

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