FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
SENATE 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
This bill seeks to grant tax exemption to allowances and benefits granted to public school 
teachers. 
Undoubtedly, there is a great demand now for public school teachers in the rural areas 
especially considering the shortage brought about lately by the exodus of teachers for overseas 
employment. However, the difficulties of life in the rural areas, such as in transportation, lodging 
or insurgency problem, to mention only a few, have discouraged teachers to be employed there. 
Thus, it is the sincere belief of the undersigned that with this privilege of tax exemption 
on salary, more new teachers will be encouraged to accept teaching jobs in remote areas, where 
usually vacancy of temporary nature exists. This is because public school teachers in this 
category either will get an equal take home pay or a regular public school teacher may even get 
more than due to the savings they get from being tax exempt. 
This bill will also encourage teachers to opt to stay in the public school system where we 
need the brightest of them. It cannot be ignored that the tax exemption on the income of teachers 
will mean extra money for them to spare for their other needs. 
For the foregoing considerations, the approval of this bill is urgently requested. 
RODOLFO ~ I A Z O N  
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Rodolfo G. Biazon 
AN ACT 
EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO 
PUBLIC SCHOOL TEACHERS, INCLUDING THOSE IN THE STATE COLLEGES 
AND UNIVERSITIES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be referred to as “The Public School Teachers’ 
Tax Incentive Act”. 
SEC. 2. Statement of Poky. - It is hereby declared the policy of the State to assign the 
highest budgetary priority to education and ensure that teaching will attract and retain its rightful 
share of the best available talents through adequate remuneration and other means of job 
satisfaction and fulfillment. 
It is further declared a policy and commitment of the State to promote and improve the 
economic status of all public school teachers, including those in State colleges and universities 
by increasing their take home pay through exemption from tax all allowances and benefits 
granted to them. 
SEC. 3. Exclusions from Gross Income. - All allowances and benefits granted to public 
school teachers, including those in the State colleges and universities at all levels, shall not be 
included in the computation of gross income and shall be exempt from taxation under Title 11 1, 
Chapter VI of Republic Act No. 8424, otherwise known as the “Tax Reform Act of 1997”. 
SEC. 4. Exemption from Attachment, Levy, and Execution. - All benefits and 
allowances referred to herein shall likewise not be subject to attachment, levy, and execution. 


SEC. 5. Rules and Regulations. - The Commissioner of the Bureau of Internal Revenue 
is hereby authorized to promulgate such rules and regulations as may be necessary to implement 
the provisions of this Act. 
SEC. 6. Repealing Clause. - All laws, decrees, executive orders, letters of instruction, 
letters of instruction, letters of implementation, rules and regulations, and other issuances 
inconsistent with any provision of this Act are hereby repealed, modified, superseded or 
amended accordingly. 
SEC. 7. Separabilit~ Clause. - If any provision of this Act of the application of such 
provision to any person or circumstance is held invalid for any reason, the remainder of this Act 
or the application of such provision to other persons or circumstances shall not be affected 
thereby. 
SEC. 8. Effectivity. - This Act shall take effect fifteeii (15) days after its complete 
publication in any two (2) newspapers of general circulation. 
Approved,