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Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
rousEBILLNo.9890
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Introduced by Representative Jaime R. Fresnedi
EXPLANATORY NOTE
This proposed legislation seeks to grant tax privileges to parents or legal guardians of
children with special needs. We envision to give a financial lifeline to these caregivers through
income tax deductions due to expenses incurred in caring for children with special needs that
include   tuition,   therapy,   diagnostic   evaluations   by   a   medical   professional,   tutoring,
transportation expenses and specialized instructional materials.
The Philippines,  like many other nations, has a significant number of children with
special needs. These children are born with or develop conditions that require additional care,
support,  and  specialized services.  Special needs can encompass a wide range  of conditions,
including  but not limited  to  autism,  intellectual  disabilities,  hearing  or visual  impairments,
speech or language disorders as well as physical disabilities.  Each of these conditions place
unique demands on families and it is often the parents or legal guardians who bear the brunt of
these challenges.
The  statistics  on special  needs  children in the Philippines  are both illuminating  and
concerning. According to  a study by UNICEF  in 2022, there are about  1.6 million Filipino
children with disabilities. I This could only mean that millions of children and their families are
curently  grappling  with  the  complexities  of living  with  special  needs.  Furthermore,  this
demographic  is  often  underserved  and  marginalized,  struggling  to  access  the  appropriate
education, medical care, and support systems that can make a significant difference in their
lives.
The  financial  burden  on  fanilies  with  special  needs  children  is  substantial.  Costs
associated  with  specialized  therapies,   medical  treatments,   assistive  devices,   educational
support, and transportation can be overwhelming. The emotional, physical, and financial stress
on parents and caregivers can be detrimental to their overall well-being. As per a study made
by the Department of Social Welfare and Development (DSWD) and the United Nations, the
families of children with special needs or disabilities are often 50% higher than other children's.
I
https://www.unicef.org/philippines/media/5941/file/Full%20report%209/o20cost%20of%20raising%20childrenyo20with%20disabilities%20i
n%20theyo20Philippines.pdf


The study states that health expenses account the highest for these particular households at
10.7% of their overall household budget.2
The aim of this legislation is to alleviate the financial strain that many families with
special needs children face daily and to encourage them to continue providing the necessary
care and support to these children thus promoting their overall well-being and development.
The government can then make tangible differences in the lives of these families by granting
these tax deductions and consequently foster a more inclusive and compassionate society for
all its citizens, most especially those with special needs.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
Lone District, Muntinlupa City
2  lbid.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HdusEB|LLNo.9890
Introduced by Rep. Jaime R. Fresnedi
AN ACT
GRANTING TAX PRIVILEGES TO PARENTS AND LEGAL GUARDIANS OF
CHILDREN WITH SPECIAL NEEDS
Be  it  enacted by  the  Senate  and  the  House  Of Representatives  Of the  Philippines  in
Congress assembled:
SECTION 1. -Dec/¢/'czfz.oJ? a/Po/I.c);. -It is the policy of the State to promote the right
of every individual to relevant quality education regardless of sex, age, breed, socio-economic
status, physical and mental condition, social or ethnic origin, and political and other affiliation.
Further, the State is committed to ensuring equal access to education and healthcare, as well as
the full benefits of education for all its citizens.
SEC.  2.  De¢#ztz.o7o o/ rer7#s. - For purposes of this Act, the  following terms  shall be
defined as follows:
(a)   42t/z.srm  is  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  environmental  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
disturbance.
(b)  Bea/#efs  is  a hearing  impairment that  is  so  severe  that the  child  is  impaired  in
processing linguistic information through hearing, with or without anplification that
adversely affects a child's educational performance.
(c)   Emo/J.o#cz/  Dz's/wrbcz#ce  is  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:
1.     An  inability  to  learn  that  cannot be  explained  by  intellectual/sensory  or
health factors;
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2.     An  inability  to  build  or maintain  satisfactory  intexpersonal  relationships
with peers and teachers;
3.     Inappropriate types of behaviors or feelings under normal circumstances;
4.    A general pervasive mood of unhappiness or depression; and
5.     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)   fJecrrz.#g Jmpc}z.red is an impairment in hearing, whether permanent or fluctuating,
that adversely affects a child's performance.
(e)   J#/e//ec/wc}//y   Dz.j'c7b/ec7       is    a   significantly    sub-average    general    intellectual
functioning existing concurently with deficits in adaptive behavior and manifested
during the developmental period that adversely affects a child's performance.
(I)    Orrfoapec7z.c J7#pcH.r7"e7?/ is 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)   gwo/z#ec7 C7"./d7ie#  wztfe Specz.cz/ Iveec7s  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 thirteen (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.
Provz.c7ed, however, that children who are permanently disabled and who are unable
to fully take care of themselves are qualified no matter how old they are.
(h)   Specz/?c rccrmz.73g Dz.scrbj./I.fy is a disorder in one or more of the basic physiological
processes involved in understanding or in using language, spoken or written, which
may manifest itself in the imperfect ability to listen/think/speak/read, whte, spell or
do  mathematical  calculations.  Such  term  includes  conditions  such  as  perceptual
disabilities,  brain injury, minimal brain dysfunction,  dyslexia,  and developmental
aphasia.
(i)    Speecfe  or  I,¢#gwczge  J"pczz.red  is  a  communication  disorder  such  as  stuttering
impaired articulation, language impairment, or a voice impairment that adversely
affects a child's educational performance.
¢)    rrczw7"cz/I.c Braz.# J#jcfr);  is  an  acquired  Injury  to  the  brain  caused by  an  external
physical  force,  resulting  in  total  or  partial  finctional  disability  or  psychosocial
impairment or both,  and that adversely affects a child's educational performance.
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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  and  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 by birth trauma.
(k)   7?s#cz/ J7#pcrz.rme77/ is an impairment in vision that,  even with correction adversely
affects a child's educational performance. The term includes both partial and sight
blindness.
SEC. 3. /#co77!c rae Dec7wcrz.o#. -A solo parent, and for spouses, the parent who has a
higher income, shall be entitled to a one percent (1 %) deduction in income tax upon submission
of receipts on expenses incurred in caring for a child with special needs. Such expenses include
the following:
(a)  Tuition fee for a private school;
(b) Therapy;
(c)  Diagnostic evaluations by a medical professional;
(d) Tutoring;
(e)  Transportation expenses to school or a medical facility; and
®  Specialized instructional materials.
SEC   4.   Fz.#c}#cz.cr/  ,4£`£I.s/ci#ce   Pcrchage  -  The   Department   of  Social   Welfare   and
Development  (DSWD),  Department  of Education  and  (DepEd)  and  Department  of Health
(DOH)  shall  formulate  a  Financial Assistance  Package  for  Children  with  Special  Needs
(FAPCNS) for parents whose income are exempted from taxes. The FAPCNS may be availed
of these parents for the following expenses:
(a)  Tuition fee for a private school;
(b)  Therapy;
(c)  Diagnostic evaluations by a medical professional;
(d) Tutoring;
(e)  Transportation expenses to school or a medical facility; and
®  Specialized instructional materials.
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SEC. 5. J"p/e7#e/?/i.Jog Rw/es cmc7 Jzggw/cz/I.o7!s. -The Bureau of lnternal Revenue (BIR)
in consultation with the Department of Education.s (DepEd) Special Education Division and
Department of Health (DOH) shall issue rules and regulations as may be necessary to carry out
the purpose of this Act, within ninety days from its enactment.
SEC. 6. ,4ppraprj.a/j.o7zf.  -The budgetary requirement needed for the implementation
of this Act shall be taken from the current year's appropriations of the BIR. Thereafter, such
sums as may be necessary for its continued implementation shall be included in the armual
General Appropriations Act.
SEC.   7.   SeprrczbJ./I.ty   C/¢#£e.   -   If  any  provision  of  this  Act   shall   be   deemed
unconstitutional or invalid, the other provisions not affected there shall remain in force and
effect.
SEC.  8.  Repecr/I.#g  C/czz/se.  -  All Acts,  Presidential  Decrees,  Executive  Orders  and
Administrative Orders, Rules and Regulations and other such issuances or parts thereof which
are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SEC. 9. EJrecf!.vj.ty. ~ This Act shall take effect fifteen (15) days following its complete
publication in a newspaper of general circulation.
Approved,
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