of liic 2-r.'tiii-p
TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 SEP-2 A10 -03
SENATE 
S. No. 1326
RtCciv'tO Gi' j
Introduced by Senator MARK A. VILLAR
AN ACT
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS OF
CHILDREN WITH SPECIAL NEEDS
EXPLANATORY NOTE
The Constitution mandates that the State prioritize education and promote the 
health rights of its citizens. This commitment emphasizes the importance of enhancing 
the quality of life for all individuals, including those with disabilities, and encourages their 
full integration into community life. It ensures that they receive the necessary resources 
and support to thrive alongside their peers.
Parents of children with special needs often face substantial costs associated with 
essential services. These expenses can include evaluation and assessment fees needed 
to accurately diagnose the child's condition, as well as ongoing therapy sessions critical 
for their development. Additionally, many children require specialized educational services 
tailored to their unique needs, which may involve Individualized education plans, tutoring, 
or support staff.
As a result, the overall financial burden of caring for a child with special needs is 
significantly higher than that faced by families with typically developing children, often 
putting considerable strain on their financial resources.
Through the Fifty Thousand Pesos (Php 50,000.00) tax deduction for qualified 
individuals, this measure aims to affirm the fundamental principle that individuals with 
diverse abilities are integral members of our society. It recognizes the importance of
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creating an inclusive environment that supports the holistic development of these 
individuals.
In view of the foregoing, the passage of this bill is earnestly sought.
MARK A. VILLAR


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1326
of till' ?■- rftnrp
25 SEP “2 A1Q:Q
RECEIVED BY.
Introduced by Senator MARK A. VILLAR
AN ACT
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS OF
CHILDREN WITH SPECIAL NEEDS
Be enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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Section 1. Declaration of Policy. - It is the policy of the State to promote the
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right of every individual to relevant quality education regardless of sex, age, breed,
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socio-economic status, physical and mental condition, social or ethnic origin, and
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political and other affiliation. Further, the State shall promote and maintain equality of
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access to education and medical care as well as the enjoyment of benefits of education
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by all its citizens.
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Sec. 2. Definition of Terms. - For the purposes of this Act, these terms are
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defined as follows:
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(a) Autism - A developmental disability significantly affecting verbal and
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nonverbal communication and social interaction, generally evident before
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age three (3), that adversely affects a child's educational performance.
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Other characteristics often associated with autism are engagement in
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repetitive activities and stereotyped movements, resistance to
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environmental change or change in daily routines, and unusual responses
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to sensory experiences. The term does not apply if a child's educational
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performance is adversely affected because the child has an emotional
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disturbance.


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(b) Deafness - A hearing impairment that is so severe that the child is impaired 
in processing linguistics information through hearing, with or without 
amplification that adversely affects a child's educational performance.
(c) 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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An inability to learn that cannot be explained by intellectual/sensory 
or health factors;
ii) An inability to build or maintain satisfactory interpersonal 
relationships with peers and teachers;
iii) Inappropriate types of behaviors or feelings under normal 
circumstances;
iv) A general pervasive mood of unhappiness or depression; and
v) 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.
(d) Hearing Impaired - Impairment in hearing, whether permanent or 
fluctuating, that adversely affects a child's performance.
(e) 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.
(f) Orthopedic Impairment - A severe orthopedic impairment that adversely 
affects a child's educational performance. The term includes impairments 
caused by congenital anomaly, impairments caused by disease, and 
Impairments from other causes.
(g) 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


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more than thirteen (13) years of age and must be assessed by the
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Department of Education's Special Education Division and a medical
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professional in order to qualify. Provided, however, that children who are
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permanently disabled and who are unable to fully take care of themselves
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are qualified no matter how old they are.
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(h) Specific Teaming Disability - A disorder in one or more of the basic
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physiological processes involved in understanding or in using language,
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spoken or written, which may manifest itself in the imperfect ability to
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listen/think/speak/read, write, spell or do mathematical calculations. Such
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term includes conditions such as perceptual disabilities, brain injury, minimal
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brain dysfunction, dyslexia, and developmental aphasia.
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(i) Speech or Language Impaired - communication disorder such as stuttering
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impaired articulation, language impairment, or a voice impairment that
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adversely affects a child's educational performance.
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(j) Traumatic Brain Injury - An acquired Injury to the brain caused by an
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external physical force, resulting in total or partial functional disability or
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psychosocial impairment or both, and that adversely affects a child's
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educational performance. The term applies to open or closed head injuries
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resulting in impairments in one or more areas, such as cognition, language,
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memory, attention, reasoning, abstract thinking, judgment, problem
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solving, sensory, perceptual and motor abilities, psychosocial behavior
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physical functions, information processing, and speech. The term does not
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apply to brain injuries that are congenital or degenerative or to brain injuries
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induced by birth trauma.
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(k) Visual Impairment - impairment in vision that, even with correction
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adversely affects a child's educational performance. The term includes both
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partial and sight blindness.
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Sec. 3. Deduction from Taxable Income. - A qualified taxpayer is entitled to a
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deduction of Fifty Thousand Pesos (P50,000.00). Expenses that qualify for deduction
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are:
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a) Tuition for a private school;
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b) Therapy;


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c) Diagnostic evaluations by a medical professional;
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d) Tutoring;
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e) Transportation expenses to school or a medical facility; and
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f) Specialized instructional materials.
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The parent or legal guardian must provide more than half of the total financial
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support for the child to qualify for the deduction.
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Sec. 4. Appropriations. - The amount necessary for the effective
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implementation of the provisions of this Act shall be taken from the current year's
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appropriation of the BIR. Thereafter, such sums as may be needed for the continued
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implementation of this Act shall be included in the annual General Appropriations Act.
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Sec. 5. Implementing Rules and Regulation. -The Bureau of Internal Revenue
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(BIR) in consuitation with the Department of Education's (DepEd) Special Education
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Division and Department of Health (DOH) shall issue such rules and regulations as
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may be necessary to carry out the purpose of this Act, within ninety days from its
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enactment.
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Sec. 6. Separabiiity Clause. - If any portion or provision of this Act is declared
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invalid or unconstitutional, the remainder thereof not otherwise affected by shall
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remain in full force and effect.
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Sec. 7. Repealing Clause. - Any laws, presidential decrees, executive orders,
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letters of instruction, proclamations, or administrative regulations that are inconsistent
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with any of the provisions of this Act, are hereby repealed, amended, or modified
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accordingly.
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Sec. 8. Effectivity- This Act shaii take effect after fifteen (15) days following
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its publication in the Official Gazette ox in a newspaper of general circulation.
Approved,