SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
THIRD REGULAR SESSION 
) 
) 
) 
SENATE 
SENATE BILL NO. 29'70 
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SEP 28 P6 :28 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT 
AMENDING SECTION 24 & 35 OF NATIONAL INTERNAL REVENUE CODE OF 1997, 
AS AMENDED, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The 1987 Philippine Constitution Article VI, Section 28 (1) provides that: 
"The rule of taxation shall be uniform and equitable. The Congress shall 
evolve a progressive system of taxation. " 
This provision sets out a policy that a sound tax system must be based on the taxpayer's 
ability to pay. 
This proposed amendment to the 1997 National Internal Revenue Code highlights the 
above-mentioned principle of a sound tax system. The bill targets to benefit the marginal income 
earners by adjusting the rates of tax on personal income. This will amend cnrrent schedule of 
individual income tax which ceased to be reasonable because of the incomparable prices of basic 
commodities when the law was enacted. 
A bigger chunk of personal exemption from Php 50,000 to Php 70,000 is also proposed in 
the measure. This amendment is seen to be suitable to the personal and family expenses as well 
as to cope with the surge of basic commodity prices. Considering the value of Consumer Price 
Index (CPI), it evidently shows a wide disparity in value when the NIRC was enacted. The 
Php62 in 1997 cost Phl00 in 2006 and in August 2014 was pegged to have cost Php140. 
Through adjusting the personal exemption, the government helps a simple Filipino laborer to 
sustain a decent living for himself and his family. 
In view of the foregoing the immediate passage of the proposed measure is earnestly 
sought. 
l 
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
THIRD REGULAR SESSION 
) 
) 
) 
Tj SEP 23 P6 :2~ 
SENATE 
SENATE BILL NO. 297 a 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
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AN ACT 
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AMENDING SECTION 24 & 35 OF NATIONAL INTERNAL REVENUE CODE OF 1997, 
3 
AS AMENDED, AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION 1. Section 24 (A) (2) of the National Internal Revenue Code of 1997, as amended, is 
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hereby further amended to read as follows: 
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"SEC. 24. Income Tax Rates. -
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"(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the 
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Philippines. -
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"(1) x x x: 
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"x x x 
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"(2) Rates of Tax on Taxable Income ofIndividuals. - The tax shall be computed in 
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accordance with and at the rates established in the following schedule: 
Not over P70,OOO ... 
Exempt 
Over 
P70,OOO 
but 
not 
over PIO,500+15% of the excess over 
PI40,OOO ... 
P70,OOO 
Over 
PI40,OOO 
but 
not 
over P21,OOO+18% of the excess over 
P280,OOO ... 
PI40,OOO 
Over 
P280,OOO 
but 
not 
over P50,400+20% of the excess over 
P500,OOO ... 
P280,OOO 
Over 
P500,OOO 
but 
not 
over PIOO,OOO+22% of the excess over 
Pl,OOO,OOO ... 
P500,OOO 
Over 
Pl,OOO,OOO 
but not over P220,OOO+ 25% of the excess over 
P5,OOO,OOO ... 
Pl,OOO,OOO 
1 


Over P5,000,000 
but 
not over Pl,250,000+30% of the excess over 
PIO,OOO,OOO... 
P5,000,OOO 
Over P10,000,000 ... 
1 
["Not over PI 0,000 
"Over 
P1O,000 
but 
P30,000 
"Over 
P30,000 
but 
P70,OOO 
"Over 
P70,000 
but 
P140,000 
"Over P140,000 but 
P250,000 
"Over P250,000 but 
P500,000 
"Over P5000,000 
2 
"xxx 
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"xxx." 
not 
not 
not 
not 
not 
P3,000,000+35% of the excess over 
P10,000,000 
5% 
over ........ 
P500+l0% of the excess over 
P1O,000 
over ........ 
P2,500+l5% of the excess over 
P30,OOO 
over ........ 
P8,500+20% of the excess over 
P70,000 
over ........ 
P22,500+25% of the excess over 
P140,000 
over ........ 
P50,000+ 30% of the excess over 
P250,000 
P125,000+32% of the excess over 
P500,000] 
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"PROVIDED, FlNALL Y, that not later than six (6) years after the effectivity of this Act 
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and every six (6) years thereafter, the net taxable income levels and nominal tax rates 
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herein stated shall be adjusted to its present value using the Consumer Price Index, as 
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published by the National Statistics Office (NSO)." 
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SECTION 2. Section 35 of the National Internal Revenue Code of 1997, as amended, is hereby 
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further amended to read as follows: 
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"SEC. 35. Allowance of Personal Exemptionfor Individual Taxpayer.-
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"(A) In General. - For purposes of determining the tax provided in Section 24(A) of this 
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title, there shall be allowed a basic personal exemption amounting to SEVENTY 
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THOUSAND PESOS (Php70,000) [Fifty thousand pesos (P50,000)] for each individual 
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taxpayer. 
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"xxx" 
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"(B) Additional Exemption for Dependents. - There shall be allowed an additional 
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exemption of THIRTY THOUSAND PESOS (P30,OOO) [Twenty-five thousand pesos 
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(25,000)] for each dependent not exceeding four (4). 
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"xxx 
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"xxx" 
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1 
"xxx" 
2 
"xxx" 
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SECTION 3. Implementing Rules and Regulations - The Secretary of Finance shall promulgate 
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the necessary rules and regulations for the effective implementation of the provisions of this Act. 
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SECTION 4. Repealing Clause - All law, orders, issuances, circulars, rules and regulations or 
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parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or 
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modified accordingly. 
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SECTION 5. Separability Clause - If any provision of this Act is declared unconstitutional or 
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invalid, other parts or provisions hereof not affected thereby shall continue to be in full force and 
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effect. 
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SECTION 6. Effectivity - This Act shall take effect on January I, 2016 following its 
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publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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