FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Sessien 
SENATE 
Senate Bill Ne.l1 19 
10 
JUL 12 
.~8 :32 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
Media is an effective alternate vehicle to. deliver educatienal services to. the 
peeple. It G\lIews Filipines to. access educatienal infermatien beyend the feur cerners ef 
the classroem and in the cemfert ef their homes. 
The Censtitutien recegnizes the vital role ef cemmunicatien and infermatien in 
natien-building and mandates the state to. protect and premete the right ef all citizens to. 
quality educatien at all levels and to. take appropriate steps to. make such educatien 
accessible to. all. 
With the petentially active and efficient role ef broadcast and print media 
in 
disseminating educatienal informatien to the peep Ie and the presence ef cerperate 
spensers who. prefer to. advertise in shows that have a big audience share, this bill 
grants tax incentives to. educatienal programs and publicatiens, tegether with their 
respective advertisers and spensers. The measure hepes to. alleviate the plight ef the 
media industry as a whele and help it beceme an effective teel in the success of the 
natienal educatienal pregram. 
In view ef the feregeing, appreval ef this bill is earnestly sought. 
MANNY ILLAR 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
10 
,1UL 12 IU3 :32 
SENATE 
i.:I:i<~';;"\,f;::'} P , 
Senate Bill No. 1119" '. 
. 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT GRANTING TAX INCENTIVES TO BROADCAST AND PRINT MEDIA 
DEVOTING AIR TIME AND SPACE TO EDUCATION, AS WELL AS, TO SPONSORS. 
SUPPORTING SUCH PROGRAMS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Declaration of Policy. - It is hereby declared the Policy of the State 
to recognize the vital roles of communication and information in nation building and shall 
take appropriate steps to make education accessible to all. 
Pursuant to this Policy, the State shall promote, support and provide incentives to 
broadcast and print media, as well as, to sponsors or advertisers, who provide air time 
and print space for educational purposes. 
SECTION 2. Coverage. - This Act shall apply to all kinds of mass media 
operating within the Republic of the Philippines. 
SECTION 3. Definition of Terms. - When used in this Act. -
a) "Mass Media," media for brevity, refers to the means of communications which 
include both broadcast and print media directed to the public at large; 
(b) "Broadcast Media" - refers to radio, television, cable broadcast and the like; 
(c) "Print Media" - refers to newspapers, magazines, reviews bulletins and other 
publications appearing at regular intervals, with fixed prices for subscription and 
sale and published within the Philippines; 
(d) "Commercials and Advertisements" - shall mean announcement, description, 
presentation, advertising or promotion of goods or services, in newspapers, 
magazine, television, radio and cable broadcast, etc; 
(e) "Advertisers or Sponsor" - shall mean the owner or the principal of the thing, 
product, goods or service to be advertised; and 
(f) "Educational Purposes" - includes but not limited to, educational programs, 
publications, commercials and advertisement which: 
1. give positive influence or entertainment; 
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2. promote social values; 
3. promote the importance of basic education; 
4. improve the image of technical education and skills training and to 
inculcate the necessary values needed for productive employment; 
5. propagate culture, foster patriotism and nationalism and other values 
that seNe as an instrument in strengthening Filipino sovereignty, 
identity, national unity and integration; 
6. propagate awareness of rights and duties of citizens as enshrined in the 
constitution and in other laws of the land; and 
7. such other similar descriptions, the Secretary of Education may provide 
pursuant to the implementation of this Act. 
SECTION 4. Tax Exempt Importation - The provision of existing laws to the 
contrary nqtwithstanding the machinery, equipment, tools for production, spare parts, 
supplies, materials and transportation and communication facilities to be used actually, 
directly and exclusively for educational purposes by media producers and publishers 
are not· subject to Duty and Internal Revenue Tax: Provided, That the National 
Economic and Development Authority certifies to the availability of the above-mentioned 
items in the local market of sufficient quantity, comparable quality, and price to meet the 
needs of the producers and publishers subject to existing taxes, the importation of said 
items shall be subject to applicable taxes: Provided, further, that such tax-exempt items 
brought or imported into the country are subsequently sold, transferred or exchanged in 
the Philippines to be devoted to non-educational purposes, the purchasers or recipients 
shall be considered the importer thereof, and 'shall be liable of tlie Duty and Internal 
Revenue Tax due on such importation, subject to depreciation allowance. The tax due 
on such items shall constitute a lien on the article itself, superior to all other charges or 
liens, irrespective of the possessor thereof. 
SECTION 5. Donations for Educational Purposes. - For purposes of this Act, any 
amount paid and contributed for educational programs and publications by any 
individual or corporation which shall not exceed ten (10) percent of their respective 
annual income computed without the benefit of any tax incentive under existing law 
shall be tax deductible. 
Properties other than cash donated shall be valued in accordance with the rules 
and regulations prescribed by the Secretary of Finance. 
SECTION 6. Program and Publication - The net income derived from educational 
programs and publications shall be tax-exempt for five (5) years from the start of its 
initial operation or until the producer and publisher shall have attained reasonable return 
of their investment. Thereafter, no part of the net income which inures to the benefit of 
the producer or publisher in an amount not in excess of twenty-five (25) percent of the 
taxable income derived from the program or publication shall be allowed. The excess 
amount of the net income shall be devoted for the enhancement of the educational 
program and for other educational purposes. 
SECTION 7. Commercial and Advertisement - All expenses incurred in the 
production of commercials and advertisements with educational impact, approved by 
the Secretary of Education or any equivalent government agency, endorsed by tile 
Kapisanan ng Broadkaster ng Pilipinas, Publisher's Association of the Philippines, 
Philippine Press Institute and other media organization, shall enjoy tax deduction of not 
more than ten (10) percent of the gross operating expenses of the advertisers or 
sponsors: Provided, That these commercials and advertisements are actual delivered to 
the general public. 
SECTION 8. Airtime Rates and Cost of Space - Broadcast and Print Media shall 
give ten (10) percent lower airtime rates and cost of space for every paid feature of 
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production and publication with educational content, as approved and certified by the 
Secretary of Education or any equivalent government agency and endorsed by 
broadcast and print recognized organizations, the difference from the regular rates shall 
be chargeable to the value added tax accruable. 
SECTION 9. Government Cooperation - Every department, bureau, office, 
agency or instrumentality of the government, including government-owned and 
controlled corporations, are enjoined to cooperate with the private sector in order to 
achieve the objectives of this Act. 
SECTION 10. Separability Clause - If any provision of this Act shall be declared 
unconstitutional, the provisions which are not affected thereby shall continue in force 
and effect. 
SECTION 11. Repealing Clause - Any law, act, decree, order, proclamation, 
regulation or any part hereof is inconsistent with this Act is hereby repealed and 
modified accordingly. 
SECTION 12. Effectivity Clause - This Act shall take effect upon approval. 
Approved, 
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