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Nineteenth Congress Se,
First Regular Session LNDEX

HOUSE BILLNO, _ 8742

Introduced by Representative Shernee A. Tan-Tambut

EXPLANATORY NOTE

This bill seeks to grant income tax exemption to persons with disabilities
(PWDs) who are gainfully employed, amending for the purpose the National
Internal Revenue Code, as amended.

The United Nations Convention on the Rights of Persons with Disability
invokes the universal recognition to the dignity of persons with disabilities.
State parties to the convention are duty-bound to promote, protect and ensure
the full and equal enjoyment of all human rights and fundamental freedoms by
all persons with disabilities, and to promote respect for their inherent dignity.

In response thereto, the government enacted Republic Act (RA) No.
7277, as amended, otherwise known as the “Magna Carta for Disabled
Persons,” to capacitate PWDs through employment and education. Section 5 of
RA 7277 articulates that PWDs shall not be denied access to opportunities for
suitable employment and shall be subject to the same terms and conditions of
employment and the same compensation, privileges, and other related benefits
and incentives as a qualified able-bodied person.

In addition, RA 10524, entitled “dn Act Expanding The Positions
Reserved For Persons With Disability, Amending For The Purpose Republic
Act No. 7277, As Amended, Otherwise Known As The Magna Carta For
Persons With Disability,” was enacted to expand the employment opportunities
for PWDs. Anent the said law, government agencies shall reserve at least 1% of
their regular and non-regular positions for PWDs. Private corporations, on the
other hand, who employ at least 100 employees are encouraged to reserve at


least 1% of all positions for PWDs and those who employ less than 100
employees are encouraged to hire PWDs.

Given the government’s commitment under the Convention on the Rights
of Persons with Disabilities on achieving inclusive growth and decent work for
all, it is but fitting to continue to bring hope to all PWDs by providing them
employment and livelihood opportunities and alleviating their financial burdens
by granting them an equitable form of tax relief to improve their welfare and
quality of living.

This bill aims to complement the self-development and self-reliance of
PWDs by exempting them from paying income tax for individuals and
effectively providing them additional means to afford the growing prices of
basic goods and services.

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



Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 4742

Introduced by Representative Shernee A. Tan-Tambut

AN ACT
GRANTING INCOME TAX EXEMPTION TO PERSONS WITH
DISABILITIES WHO ARE GAINFULLY EMPLOYED, AMENDING FOR
THE PURPOSE THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED

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

SECTION 1. Section 24 of the National Internal Revenue Code, as amended, is
hereby further amended to read as follows:
“SEC. 24. Income Tax Rates. —
“(A) Rates of Income Tax on Individual Citizen and
Individual Resident Alien of the Philippines. —
“1. Xxx.
“2. XXX.
“For married individuals, the husband and wife, subject to
the provision of Section 51 (D) hereof, shall compute separately

their individual income tax based on their respective total taxable


income: Provided, That if any income cannot be definitely
attributed to or identified as income exclusively earned or realized
by either of the spouses, the same shall be divided equally between
the spouses for the purpose of determining their respective taxable
income.

“Provided, That minimum wage earners as defined in
Section 22 (HH) of this Code AND PERSONS WITH
DISABILITIES AS DEFINED IN SECTION 4 OF RA 7277,
AS AMENDED, OTHERWISE KNOWN AS THE “MAGNA
CARTA FOR DISABLED PERSONS” shall be exempt from the
payment of income tax on their taxable income: Provided, further,
That the holiday pay, overtime pay, night shift differential pay and
hazard pay received by such minimum wage earners AND
PERSONS WITH DISABILITIES shall likewise be exempt from
income tax.

“Xxx.”

SEC. 2. All laws, executive orders, issuances, rules and regulations, or parts
thereof inconsistent with the provisions of this Act are repealed or modified
accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,