FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES) 
First Regllliar Session 
) 
SENATE 
Senate Bill No. 2624 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
'10 
nEG -9 P! :21 
d_ , 
This bill s,eeks to ease the financial burden on families who have children 
with special needs. Parents and legal guardians will be allowed a tax 
deduction; to help deal with expenses incurred for the child's therapy, 
education and treatment. 
Children with disabilities have personal challenges far in excess of those 
considered regular and healthy children. Parents need to pay for specialized 
services such as occupational, physical and speech therapies to improve the 
quality of life of their children. 
The Depar:tment of Education's Special Education Division estimates the cost 
for takinm care of a child with a disability is at least double compared to 
regular children. 
A child w'jth a disability is understood to be a child who is intellectually 
disabled, has hearing impairments (including deafness), speech or language 
impairments, visual impairments, serious emotional disturbance, orthopedic 
impairments, autism and traumatic brain injury. 
Based on the 2009 Family Income and Expenditure Survey, Filipino families 
earned an: average of P206,000 and spent Php176,000 on the average. This 
translates to an average annual family savings of P31,000 in 2009. On a 
monthly basis, the reported average income was P17,200 and average 
expenditure was P14,700. 
Families in the ,bottom 30% income group reported an average annual family 
income of P62,000. Families in the upper 70% income group earned an 
average annual income of P268,000. On a monthly basis, the average 
income of. the families in the bottom 30% was P5,200 while the upper 70% 
earned an average of P22,300. 
Children with a learning disability topped the list of special needs children 
enrolled in a public elementary school as of 2009. A total of 51,296 children 
were assessed as learning disabled, while the number of mentally 
retarded/intellectually disabled children stood at 13,119. Children who are 
hearing impaired ranked third with 12,039. 


For School Year 2007 to 2008, the number of enrolled children with special 
needs in public and private elementary schools stood at 92,429. This 
translates to a 27.6% increase compared to School Year 2004 to 2005's total 
of 79,118'. Many children no longer pursue secondary education or stay in 
elementary schools for an extended period of time. 
In the provinces, children with different disabilities are often grouped 
together rather than have separate classes for each condition. Ideally, there 
should be 10 to 15 students per teacher. However, the existing student to 
teacher ratio is 25: 1 and children with different disabilities are grouped in 
the same class. 
i 
1 
This bill aims to help parents and legal guardians provide better support and 
special ca!'e for a child with special needs by reducing their expenses. 
The immediate approval of this bill is earnestly sought. 
MANNY V LLAR 


FIFTEENTH CONGRESS OF THE ) 
REPUBLIIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2624 
Introduced by Senator Manny Villar 
AN ACT 
,~el1ldr 
, (~(flfe (If' fI!£)&vrrriuq,t 
'10 
DEC -9 P 2 :20 
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS 
OF CHILDREN WITH SPECIAL NEEDS 
SECTION 1. Declaration of Policy - It is the policy of the State to promote 
the right of every individual to relevant quality education regardless of sex, 
age, bree~, socio-economic status, physical and mental condition, social or 
ethnic oriiJin, political and other affiliation. Further, the State shall promote 
and maintain equality of access to education and medical care as well as the 
enjoyment of benefits of educatibn by all its citizens. 
SECTION 2. 
Definition -
For the purposes of this Act, these terms are 
defined as follows: 
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 
more than 13 years of age and must be assessed by the Department of 
Education:'s Special Education DiviSion and a medical professional in order to 
qualify. This does not cover children conSidered mentally gifted or fast 
learners. ' 
Autism -: A developmental disability significantly affecting verbal and 
nonverbal communication and SOCial interaction, generally evident before 
age three (3), that adversely affects a child's educational performance. 
Other characteristics often aSsOCiated with autism are engagement in 
repetitive! 
activities 
and 
stereotyped 
movements, 
resistance 
to 
environmi~ntal change or change in daily routines, and unusual responses to 
sensory experiences. The term does not apply if a child's educational 
performance is adversely affected because the child has an emotional 
disturbanl,:e. , 
Deafness ,- A hearing impairment that is so severe that the child is impaired 
in proce!isin9 linguistic information through hearing, with or without 
amplification, that adversely affects a child's educational performance. 


Intellectually Disabled -
Significantly subaverage 
general 
intellectual 
functioning/ existing concurrently with deficits in adaptive behavior and 
manifested during the developmental period/ that adversely affects a child's 
performance. 
Hearing Impaired -
An impairment in hearing, whether permanent or 
fluctuating, that adversely affects a child's performance. 
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: 
A. An inability to learn that cannot be explained by intellectual/ sensory 
or health factors 
B. An inability to build or maintain satisfactory interpersonal relc;ltionships 
with peers and teachers 
C. Inappropriate 
types 
of 
behaviors 
or 
feelings 
under 
normal 
circumstances 
D. A general pervasive mood of unhappiness or depression 
E. A tendency to develop physical symptoms or fears aSSOCiated with 
personal or school problems 
ii. The term includes schizophrenia. The term does not apply to children 
who are socially maladjusted, unless it is determined that they have an 
emotiohal disturbance. 
OrthopediC Impairment -
A severe orthopedic impairment that adversely 
affects a ichild's educational performance. The term includes impairments 
caused by congenital anomaly (.e.g./ club foot, absence of some member), 
impairmer\ts caused by disease (e.g., poliomyelitis/ bone tuberculosis), and 
impairments from other causes (e.g./ cerebral palsy, amputations, and 
fractures or burns that cause contractures). 
Visual Impairment -
An impairment in vision that, even with correction/ 
adversely affects a child's educational performance. The term includes both 
partial and sight blindness. 
Traumatic Brain Injury -
An acquired injury to the brain caused by an 
external physical force, resulting in total or partial functional disability or 
psychosocial impairment or both, and that adversely affects a child's 
educational performance. The term applies to open or closed head injuries 
resulting in impairments in one or more areas, such as cognition; language; 
memory; : attention; 
reasoning; 
abstract thinking; judgment; 
problem 
solving; sensory; perceptual a'nd motor abilities; psychosocial behavior; 
physical functions; information processing; and speech. The term does not 
apply to brain injuries that are congenital or degenerative or to brain injuries 
induced bV birth trauma. 
Speech or Language Impaired -
A communication disorder such as 
stuttering i, 
impaired articulation, a language impairment, or a voice 
impairme(lt that adversely affect's a child's educational performance. 
Specific teaming Disability -
A disorder in one or more of the basic 
psycholog'ical processes involved in understanding or in using language, 
spoken or written, which may manifest itself in the imperfect ability to listen/ 
think/ speak/ read, write, spell/ or do mathematical calculations. Such term 


includes conditions such as perceptual disabilities, brain injury, minimal 
brain dysfunction, dyslexia, and developmental aphasia. 
SECTION 3. Deduction from Taxable Income -
A qualified taxpayer is 
entitled to a deduction of P50,OOO. Expenses that qualify for a deduction 
are: 
• Tuition for a private school 
, 
, 
• Thei-apy 
• 
Dia9nostic evaluations by a medical professional 
• Tutoring 
• Trar,lsportation expenses to school or a medical facility 
• 
Spetialized instructional materials 
The parent or legal guardian must provide more than half of the total 
financial support for the child to qualify for the deduction. 
SECTION' 4. 
Implementation. 
The 
Bureau 
of Internal 
Revenue 
in 
consultatibn with the Department of Education's Special Education Division 
and Department of Health shall issue such rules and regulations as may be 
necessary to carry out the purpose of this Act. 
SECTION 5. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette and two (2) newspapers with a nationwide 
circulation. 
Approved,