THIRTEENTH COI\IGRF,SS OF THE REPUBLIC ) 
First Regular Session 
OF THE PHILIPPINES 
1 
) 
I 
I 
, 
Senate Bill No. 1577 
S E N A T E  
~ 
\ 
~ 
\ 
Introduced by Senator Rodolfo G. Biazon 
I 
EXPLANATORY NOT& 
I 
It is the sacred duty Af 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 sanctl;ty of family life and shall protect and strengthen the family as a basic 
autonomous social institution. It shall equally protect the Ice ofthe mother and the I$e of the 
unborn from conceptibn. The nhtural andpvimary right and duty ofparents in the rearing of the 
youth for civic eficiency ayd the development of the moral character shall receive the support of 
the Government. '' 
There are many ways, I 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. iWith 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 wurries on how to raise their children 
into productive members of the society. 
While every year eack head of State avers that housing is a come; 
that will be addressed by his 
or her administration' what with the burgeoning numbers of the liomeless 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, t@ning blind eyes to dangers posed to their children in communities that are 
wanting in basic facil'ties and which are less than ideal for their character formation. 
This bill seeks to prqvide some measure of relief to our taxpayers who are married or heads of 
their families, by inc:uding 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 requested. 
i 
t 
RODOLF~O G. BIAZON 
Senator 


THIRTEENTH COVGRESS OF THE REPUBLIC ) 
’ij4 
-2 p 2 :[)ti 
OF THE PHILIPPINES 
1 
) 
6 
.I ,- ., 
T :.- 
__- 
i 
I 
i,:.;,. 
.., t;:. 
r.. 
! 
S E N A T E  
First Regular Sessio 
Senate Bill No. 
1579 
~~ 
I ’ 
Introduced by Senator Rodolfo G. Biazon 
I 
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 ofRepresentntives ofthe Philippines in 
I 
Congress assembled: j 
I 
I I 
SECTION 1.lSection 34 of Republic Act 8424 is hereby amended to read as follows: 
Sec. 44. Deductions from Gross Income. - Except for taxpayers earning 
compensation income arising from personal services rendered ,under an employer-employee 
relationship where ho 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 deductionsi from gross income: 
I 
. .  
i 
I 
! 
I 
(A) Expenses. - 
xxx 
xxx 
xxx 
1 xxx 
! 
~ 
(N) RENTALS ON DWELLINGS. - THE AMOUNT OF RENTALS ON 
DWELLINGS PArDi FOR BY THE TAXPAYER 
CONSIBE~TION OF HIS OR HIS 
FAMILY’S LODGAGS SHALL BE ALLOWED AS A DEDUCTION FROM HIS GROSS 
HUNDRED THOUS/AND PESOS (p5oo, ooo.oo) FOR THE TAXABLE YEAR. m w z m D ,  
ONLY BE CLAIMED BY THE SPOUSE CLAIMING THE ADDITIONAL EXEMPTION 
INCOME. PROVIDI!?D, THAT THE HOUSEHOLD INCOME SHALL NOT EXCEED FIVE 
FURTHER, THAT QV THE CASE OF MARRIED TAXPAYERS, SAID DEDUCTION MAY 
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 A?@ RESIDENCE. 


I 
I 
Notwithstanding the provisions of the preceding Subsections, the Secretary of 
Finance, upon the redommendation of the Commissioner, after a public hearing shall have .been 
itemized deductions Lnder Subsections (A) to (J), AND (N) oE this Section: Provided, That for 
purposes of determin ng such ceilings or limitations, the Secrete 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 fiut er be imposed on items of expense aiready subject to ceilings under present 
held for the purpose, I, 
ay prescribe by rules and regulations, limitations or ceilings for any of the 
! 
1 
law. 
1 
I 
SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance shall 
promulgate the neceslary 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 
l 
I 
! 
accordingly. 
~ 
SEC. 4. Effectivity. - This Act shall take effect fifieen (15) days after publication in two 
! 
(2) national newspa] 
Approved, 
:rs of general circulation.