SIXTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
COMMITTEE REPORT NO. 
84 
Submitted by the Committee on Ways and Means on OCT 2 Z 2014 
Re: 
S.B. No. 
243'7 
'14 ocr 22 P 1 :53 
Recommending its approval in substitution of S.B. Nos. 256, 452, 1838, 1944 and 2157 
taking into consideratio"n H.B. No. 4970. 
Sponsor: 
Senator Angara 
MR. PRESIDENT: 
The Committee on Ways and Means to which were referred the following Senate 
Bill No. 256, introduced by Senator Recto, entitled: 
AN ACT 
INCREASING THE CEILING OF THE 13TH MONTH PAY, CHRISTMAS 
BONUS 
AND 
OTHER 
BENEFITS 
EXCLUDED 
FROM 
THE 
COMPUTATION OF GROSS INCOME FOR THE PURPOSES OF 
INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32 
(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 
1997, AS AMENDED 
. Senate Bill No. 452, introduced by Senator Recto, entitled: 
AN ACT 
EXCLUDING 13TH MONTH PAY AND OTHER BENEFITS FROM THE 
COMPUTATION· OF TAXABLE INCOME AMENDING 
FOR THE 
PURPOSE SECTION 32 (B) (7) (E) OF REPUBLIC ACT NO. 8424 
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED 
Senate Bill No. 1838, introduced by Senator Lapid, entitled: 
AN ACT 
REMOVING THE CAP ON THE AMOUNT OF THIRTEENTH MONTH 
PAY AND OTHER BENEFITS TO BE EXCLUDED FROM GROSS 
INCOME, AMENDING FOR SUCH PURPOSE SECTION 32(B)(7)(E), 
CHAPTER VI 
OF REPUBLIC ACT NO. 
8424, AS AMENDED, 
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE 
CODE OF 1997 


/ 
Senate Bill No. 1944, introduced by Senator Recto, entitled: 
AN ACT 
PROVIDING TAX RELIEF TO THE LABOR SECTOR BY EXPANDING 
THE COVERAGE OF EXCLUSIONS FROM GROSS INCOME AND 
INCREASING THE AMOUNTS OF DE MINIMIS BENEFITS EXEMPT 
FROM TAX AMENDING FOR THE PURPOSE SECTIONS 32(B) AND 33 
OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED, AND FOR OTHER PURPOSES 
Senate Bill No. 2157, introduced by Senator Angara, entitled: 
AN ACT 
ADJUSTING THE 13TH M'ONTH PAY AND OTHER BENEFITS CEILING 
EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR 
PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE 
SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED 
and House Bill No. 4970, sponsored by Representatives Romero S. Quimbo, Antonio L. 
Tinio, Jose Christopher Y. Belmonte, et aI., entitled 
AN ACT 
INCREASING THE CEILING FOR THE TOTAL EXCLUSION FROM 
GROSS INCOME OF THE 13TH MONTH PAY AND OTHER BENEFITS 
TO SEVENTY THOUSAND PESOS (P70,OOO), AMENDING FOR THE 
PURPOSE. SECTION 32(B)(7)(E) OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED 
has considered the same and has the honor to reR0rt the bills back to the Senate with 
the recommendation that the attached S.B. No.~7prepared by the Committee, 
entitled: 
AN ACT 
ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING 
EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR 
PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE 
SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED 
be approved in substitution of S.B. Nos. 256, 452, 1838, 1944 and 2157 taking into 
consideration H.B. No. 4970 with Senators Recto, Lapid and Angara as authors thereof. 
Respectfully submitted: 
MIRIAM DEFENSOR SANTIAGO 
Vice Chairperson 
-2-


Members: 
~ 
Qy(rt'v-or 
PAOLO BENIGNO "~AM" AQUINO IV 
FRANCIS "CHIZ" G. ESCUDERO 
RAMON "BONG" REVILLA, JR . 
• 
<3 6-=- : 
JOSEPH VICTOR G. EJERCITO 
Ex-Officio Members: 
ALAN PETER "Compafiero" S. CAYETANO 
Majority Leader 
HON. FRANKLIN M. DRILON 
Senate President 
-3-
'~'L 
VICENTE C. 
Acting Minori 


.i>!?mlh' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
{'Hut ttf tilF>Hrrf:tr¥ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
"14 
OCT 22 P 1 :53 
SENATE 
S.BILLNo. 2437 
HECEIVED BY:-f 
(In substitution of S.B. Nos. 256, 452, 1838, 1944 and 2157 taking into consideration I-LB. 
No. 4970) 
Prepared by the Committee with Senators Recto, Lapid and Angara 
as authors thereof 
AN ACT 
ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING 
EXCLUDED FROM THE COMPUTATION OF· GROSS INCOME FOR 
PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE 
SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: 
1 
SECTION 1. Section 32 (B), Chapter VI of the National Internal Revenue Code of 
2 
the Philippines (Republic Act No. 8424) is hereby amended as follows:: 
3 
"Sec. 32. Gross Income. -
5 
"(B) Exclusions from Gross Income. - The following items shall not be 
6 
included in gross income and shall be exempt from taxation under this Title: 
7 
"xxx 
8 
"(7) Miscellaneous Items. -
9 
"(e) 13'h Month Pay and Other Benefits. - Gross benefits 
10 
received by officials and employees of public and private 
11 
entities: Provided, however, That the total exclusion under this 
12 
subparagraph shall not exceed [Thirty thousand pesos 
13 
(p30,OOO)] 
SEVENTY 
FNE 
THOUSAND 
PESOS 
14 
(p75,000) which shall cover: 
15 
"xxx 
16 
"(iv) Other benefits such as productivity incentives 
17 
and Christmas bonus: Provided, [further, That the 
18 
ceiling of Thirty thousand pesos (p30,OOO) may be 


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increased tlttough rules and regulations issued by the 
Secretary of Finance, upon recomtnendation of the 
Cotnnl.issioncr, after considering, among others, the, 
effect on the same of the inflation rate at the end of 
the taxable year,] THAT NOT LATER THAN 
THREE (3) YEARS AFTER THE EFFECTIVITY 
OF THIS ACT AND EVERY THREE (3) YEARS 
THEREAl<lER, THE PRESIDENT OF THE 
PHILIPPINES SHALL ADJUST THE AMOUNT 
HEREIN STATED TO ITS PRESEN1" VALUE 
USING THE CUMULATIVE CONSUMER PiliCE 
INDEX 
(CPI), 
AS 
PUBLISHED 
BY THE 
NATIONAL STATISTICS OFFICE (NSO). 
"xxx" 
SEC. 2. Implementing Rules and Regulations, - The Secretary of Finance shall promulgate 
the necessary rules and regulations for the faithful and effective implementation of the 
provisions of this Act. 
SEC. 3, Repealing Clause. - All laws, orders, issuances, circulars, rules and regulations or 
parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 4, Separability Clause. - If any provision of this Act is declared unconstitutional or 
invalid, other parts or provisions hereof not affected thereby shall continue to be in full 
force and effect. 
SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
in at least two (2) newspapers of general circulation. 
Approved,