Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Third Regular Session
House Bill No. _____
Introduced by Honorable Dan S. Fernandez
EXPLANATORY NOTE
Section 4, Article XV of the 1987 Philippine Constitution states that the family has the
duty to care for its elderly members but the State may also do so through just programs of social
security.
The problem pertinent to the foregoing provision is that Philippine Statistical Authority
(PSA) data indicates that a significant majority or 75% of our senior citizens are presently not
covered by social security or retirement plan. Of those receiving a monthly pension, 60% receive
below P5,000 per month. And with little savings set aside out of a lifetime of labor, the much
hoped for “golden years” of most of our senior citizens will be anything but that.
If the objective of this measure is attained, that is, income tax exemption is granted to
senior citizens who are still working, this will somehow increase their meager savings so that
they will at least have a better fighting chance of obtaining financial protection when they retire.
With the unmitigated or unrelenting inflationary pressure on the prices of goods and services, our
elderlies need all the help they could get so that they could meet their basic needs when they are
no longer working.
There are around 9.22 million senior citizens in the country (ref. PSA’s 2020 survey). A
large portion of these elderlies (around 42%) are still active in the workforce. The government
should seriously consider extending financial relief to these working seniors by amending the tax
scheme, so as to exempt them from the payment of income tax. As it has been said, seniors have
already contributed significantly to society. It is about time, therefore, that society gives back to
them.
In view of the foregoing considerations, the approval of this bill, at the earliest possible
time, is earnestly recommended.
DAN S. FERNANDEZ
Lone District of Santa Rosa City
10989
October 14, 2024
11:03 am


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Third Regular Session
House Bill No. _____
Introduced by Honorable Dan S. Fernandez
AN ACT
GRANTING
INCOME
TAX
EXEMPTION
TO
SENIOR
CITIZENS,
WHO
ARE
GAINFULLY EMPLOYED, AMENDING FOR THE PURPOSE SECTION 24 (A) OF THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
Be it enacted by the Senate and the House of Representative in Congress assembled:
SECTION 1. Short Title. - This Act shall be known and cited as the "Income Tax Exemption for Senior
Citizens Act."
SEC. 2. A new paragraph in Section 24 (A) of the National Internal Revenue Code of 1997, as amended,
is hereby added, to read as follows:
“Sec. 24. Income Tax Rates. –
(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of
the Philippines.
xxx
(2) Rates of Tax on Taxable Income of Individuals. – The tax shall be
computed in accordance with and at the rates established in the following
schedule:
(a) Tax Schedule Effective January 1, 2018, until December 31, 2022:
xxx
PROVIDED FINALLY, THAT SENIOR CITIZENS WHO ARE
GAINFULLY EMPLOYED SHALL BE EXEMPT FROM THE
PAYMENT OF INCOME TAX, AND THAT THE HOLIDAY PAY,
OVERTIME PAY, NIGHT SHIFT DIFFERENTIAL PAY, AND
HAZARD
PAY
RECEIVED
BY
SUCH
SENIOR
CITIZEN
EMPLOYEES SHALL LIKEWISE BE EXEMPT FROM INCOME
TAX.
10989


SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders and their implementing rules,
inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.
Approved,