Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.43°73

Introduced by Representative GLORIA MACAPAGAL ARROYO

AN ACT
sPROVIDING FOR TAX RELIEF DURING TIMES OF CALAMITY

EXPLANATORY NOTE

Despite the devastation we Filipinos are subjected to in times of calamites, we
have always been resilient and showed the world how we can rise to the occasion and
stand back up. This was evident during the aftermath of Typhoon Ondoy in 2009 where
we were even commended by the international community by exhibiting the best of
Filipino traits. The display of camaraderie and empathy by ordinary citizens who risked
their lives to save strangers was a common scene in hardly-hit areas. Even hard-
eared savings were given freely to charitable organizations to augment relief
operations and to serve more of those affected

This display of heroism and gallantry, however, also brought into the limelight a
few bureaucratic glitches that impeded the steady flow of donations. Multinationals and
some individuals wanted to give huge sums to organizations to help aid the calamity
victims but were faced with a hefty sum for donor's tax. They can avail of an exemption
for their donation to charitable organizations but the stiff accreditation requirements
became a deterrent. They would also have to submit paperwork to BIR for audit
procedures and compounding the problem is the fact that not all organizations with relief
operations are accredited charitable organizations.

This humble proposal seeks to addresses all of these concems. As long as a
state of calamity is declared by the proper Sanggunian, donations in favor of the victims
shall be exempt from taxation notwithstanding the nature of the business of the donee
organization so as not to hamper funds from coming in.


This bill is based on the response of the United States Congress in granting
similar tax treatments in the wake of Hurricane Katrina

In view of the foregoing reasons, the immediate passage into law of this
proposed measure is earnestly requested.

GLORIA MACAPAGAL ARROYO
Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

ane
House Bill NoA8'28

Introduced by Representative GLORIA MACAPAGAL ARROYO.

AN ACT
PROVIDING FOR TAX RELIEF DURING TIMES OF CALAMITY

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

SECTION 1. Calamity defined. - For purposes of this Act, “Calamity” shall be
defined as a state of extreme distress or misfortune, produced by some adverse
circumstance or event or any great misfortune or cause or loss or misery caused by
natural forces.

SECTION 2. Effect of Declaration of Calamity. - A declaration of a state of
calamity by the proper local Sanggunian shall make effective the following tax relief:

‘A) The real property tax in the affected area shall not be assessed and collected
for two fiscal years, starting from the date of the declaration of a state of
calamity;

B) Any donation in the name of any organization that declares that the funds
donated shalll be in favor of the victims of the calamity shall be exempt from
donor's tax. This exemption from the donor's tax shall automatically apply
and the Bureau of Internal Revenue shall not require any accreditation
tequirements: Provided, however, That no more than 10% of the said gift
shall be used by the donee organization for administration purposes.


SECTION 3. Repealing Clause. — All laws, decrees, orders, rules and regulations
or parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SECTION 4. Separability Clause. — If, for any reason, any provision of this Act is
declared unconstitutional or invalid, the other sections or provisions hereof which are
not affected thereby shall continue to be in full force and effect.

SECTION 5. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,