Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon City

SEVENTEENTH CONGRESS|
First Regular Session

1705
House Bill No.

Introduced by HON. ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

bill secks to grant tax exemption to allowances and benefits granted to public
school teachers.

Undoubtedly, there is a great demand now for public school teachers in the rural areas
especially considering the shortage brought about lately by the exodus of teachers for
overseas employment. However, the difficulties of life in the rural areas, such as in
transportation, lodging or insurgency problem, to mention only a few, have discouraged
teachers to be employed there,

Thus, it is the sincere belief of the undersigned that with this privilege of tax
exemption on salary, more new teachers will be encouraged to accept teaching jobs in remote
areas, where usually vacancy of temporary nature exists. It will also encourage teachers to opt
to stay in the public school system where we need the brightest of them. It cannot be ignored
that the tax exemption on the income of teachers will mean extra money for them to spare for
their other needs.

In view of the foregoing considerations, early passage of this bill is earnestly sought.

RO: iO lino A a

Representative
Lone District, Muntinlupa City



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

House Bill No.L705

Introduced by HON. ROZZANO RUFINO B. BIAZON

EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO
PUBLIC SCHOOL TEACHERS, INCLUDING THOSE IN THE STATE COLLEGES
AND UNIVERSITIES

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

SECTION 1. Short Title. ~ This Act shall be referred to as “The Publie School
Teachers’ Tax Incentive Act”.

Sec. 2. Statement of Policy. — It is hereby declared the policy of the State to assign the
highest budgetary priority to education and ensure that teaching will attract and retain its
rightful share of the best available talents through adequate remuneration and other means of
job satisfaction and fulfillment.

It is further declared a policy and commitment of the State to promote and improve
the economic status of all public school teachers, including those in State colleges and
universities by increasing their take home pay through exemption from tax all allowances and
benefits granted to them.

Sec. 3. Exclusions from Gross Income. All allowances and benefits granted to public

school teachers, including those in the State colleges and universities at all levels, shall not be
1



included in the computation of gross income and shall be exempt from taxation under

le
111, Chapter VI of Republic Act No. 8424, otherwise known as the “Tax Reform Act of
1997”,

Sec. 4. Exemption from Attachment, Levy, and Execution. — All benefits and
allowances referred to herein shall likewise not be subject to attachment, levy, and execution.

Sec. 5. Rules and Regulations. — The Commissioner of the Bureau of Internal
Revenue is hereby authorized to promulgate such rules and regulations as may be necessary
to implement the provisions of this Act.

See. 6. Repealing Clause.

All laws, decrees, executive orders, letters of instruction,
letters of instruction, letters of implementation, rules and regulations, and other issuances
inconsistent with any provision of this Act are hereby repealed, modified, superseded or
amended accordingly.

Sec. 7. Separability Clause. ~ If any provision of this Act of the application of such

provision to any person or circumstance is held invalid for any reason, the remainder of this
Act or the application of such provision to other persons or circumstances shall not be
affected thereby.

Sec. 8. Effectivity. — This Act shall take effect fifteen (15) days after its complete

publication in any two (2) newspapers of general circulation.

Approved,