Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
THIRTEENTH CONGRESS ne °
First Regular Session \

House Bill No. £95

Introduced by Hon, Rozzano Rufino B. Biazon

EXPLANATORY NOTE

Tt is the sacred duty of the State to protect at all times the sanctity of the Filipino family. The
Constitution articulates this principle very clearly in Sec. 12 of State Policies: “The State
recognizes the sanctity of family life and shall protect and strengthen the family as a basic
autonomous social institution. It shall equally protect the life of the mother and the life of the
unborn from conception. The natural and primary right and duty of parents in the rearing of the
youth for civic efficiency and the development of the moral character shall receive the support of
the Government.”

‘There are many ways the State can manifest its support for the Filipino family, but perhaps none
more concrete than by enabling the heads of the families to provide for the needs of their
families adequately. With the shrinking value of our currency, unemployment problems, peace
and order problems, inability of the government to provide for the social and basic needs of our
people, the ordinary Filipino family is besieged by endless worries on how to raise their children
into productive members of the society.

While every year each head of State avers that housing is a concern that will be addressed by his
or her administration, what with the burgeoning numbers of the homeless and informal settlers,
this problem is to date yet to be satisfactorily resolved. Each year, the increase in rentals has
forced many to scrimp on other necessities. Worse, others have resorted to becoming informal
settlers themselves, turning blind eyes to dangers posed to their children in communities that are
wanting in basic facilities and which are less than ideal for their character formation.

This bill seeks to provide some measure of relief to our taxpayers who are married or heads of
their families, by including their rentals as allowable deductions from their gross income. It is
envisioned that the said amount shall be used to provide for other, equally important, needs of
the members of the family.

In view of the urgency of this measure, its passage is earnestly fequested.

Re NO RUFINO B. 4 fe

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
THIRTEENTH CONGRESS
First Regular Session

House Bill No, 195

Introduced by Hon. Rozzano Rufino B. Biazon

AN ACT
PROVIDING ADDITIONAL ALLOWABLE TAX DEDUCTIONS FOR
INDIVIDUAL TAXPAYERS, AMENDING FOR THE PURPOSE SECTION 34 OF
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE TAX REFORM
ACT OF 1997

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 34 of Republic Act 8424 is hereby amended to read as
follows:

Sec. 34. Deductions from Gross Income. — Except for taxpayers earning
compensation income arising from personal services rendered under an employer-
employee relationship where no deductions shall be allowed under this Section other than
under Subsection[S] (M) AND [(N)] hereof, in computing taxable income subject to
income tax under Sections 24(A); 25(A); 26; 27(A), (B) and (C); and 28(A)(1), there
shall be allowed the following deductions from gross income:

(A) Expenses. —

Xxx Xxx, XXX XXX

(N) RENTALS ON DWELLINGS. - THE AMOUNT OF RENTALS ON
DWELLINGS PAID FOR BY THE TAXPAYER IN CONSIDERATION OF HIS OR
HIS FAMILY’S LODGINGS SHALL BE ALLOWED AS A DEDUCTION FROM HIS
GROSS INCOME. PROVIDED, THAT THE HOUSEHOLD INCOME SHALL NOT
EXCEED FIVE HUNDRED THOUSAND PESOS (P500, 000.00) FOR THE
TAXABLE YEAR. PROVIDED, FURTHER, THAT IN THE CASE OF MARRIED
TAXPAYERS, SAID DEDUCTION MAY ONLY BE CLAIMED BY THE SPOUSE
CLAIMING THE ADDITIONAL EXEMPTION FOR DEPENDENTS.

FOR PURPOSES OF THIS SUBSECTION, “RENTALS ON
DWELLINGS” MEANS PAYMENTS MADE BY THE TAXPAYER FOR THE USE


OF A HOUSE, AN APARTMENT, A ROOM OR ANY DWELLING PRIMARILY
USED FOR RESIDENTIAL PURPOSES AND RENTED OUT TO A TENANT ON A
REGULAR BASIS, FOR PURPOSES OF HIS OR HIS FAMILY’S LODGINGS AND
RESIDENCE.

Notwithstanding the provisions of the preceding Subsections, the
Secretary of Finance, upon the recommendation of the Commissioner, after a public
hearing shall have been held for the purpose, may prescribe by rules and regulations,
limitations or ceilings for any of the itemized deductions under Subsections (A) to (J),
AND (N) of this Section: Provided, That for purposes of determining such ceilings or
limitations, the Secretary of Finance shall consider the following factors: (1) adequacy of
the prescribed limits on the actual expenditure requirements of each particular industry;
and (2) effects of inflation or expenditure levels: Provided, further, That no ceilings shall
further be imposed on items of expense already subject to ceilings under present law.

SEC, 2. Implementing Rules and Regulations. - The Secretary of Finance shall
promulgate the necessary rules and regulations for the effective implementation of this
Act.

SEC. 3. Repealing Clause. - All laws, decrees, orders, issuances, rules and
regulations and other issuances or parts thereof inconsistent with this Act are hereby
repealed or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after publication
in two (2) national newspapers of general circulation.

Approved,