REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Manila

SEVENTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No. 1803

Introduced by: HON. GREG G. GASATAYA

EXPLANATORY NOTE

In order to establish, maintain and support a complete, adequate, and integrated system of
education, the State has now started the implementation of a structural and curricular reform with
the Enhanced Basic Education Act of 2013, otherwise known as the K to 12 Program. It
extended formal education from ten years to twelve years by adding mandatory two years of
senior high school, thus increasing the school of leaving age from twenty-one (21) to twenty-

three (23) years old.

‘The fear of financial hardship is now a major concern voiced by many parents who
oppose the reform because of the cost of keeping their children in school and out of the
workforce for two additional years. Truth to tell, this further delays the student's entry into the
labor market and results in foregone earnings from work. This is particularly unfavorable for
those parents who want their children to graduate in college in the shortest possible time and
eventually get a decent job. In this view, this bill aims to increase the age of a ‘dependent’ from
twenty-one (21) to twenty-three (23) years of age as an additional tax exemption for every
married individual so that parents are able to adapt to this changing condition brought about by
the implementation of the K to 12 program. | therefore urge your support for the approval of this
bill

Lone District, Bacolod City


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Manila

SEVENTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No._ 1803

Introduced by: HON. GREG G. GASATAYA

AN ACT AMENDING SECTION 35, PARAGRAPH B (4) OF REPUBLIC ACT NO. 8424,
AS AMENDED, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE
CODE OF 1997

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

SECTION 1. Section 35 (B) of Republic Act No. 8424, as amended, otherwise known as the
National Internal Revenue Code of 1997, is hereby further amended to read as follows:

"SEC. 35. Allowance of Personal Exemption for Individual Taxpayer. ~

"(B) Additional Exemption for Dependents. - There shall be allowed an additional exemption of
‘Twenty-five thousand pesos (25,000) for each dependent not exceeding four (4).

"The additional exemption for dependents shall be claimed by only one of the spouses in the case
of married individuals.

"In the case of legally separated spouses, additional exemptions may be claimed only by the
spouse who has custody of the child or children:

Provided, that the total amount of additional exemptions that may be claimed by both shall not
exceed the maximum additional exemptions herein allowed,

"For purposes of this Subsection, a "dependent" means a legitimate, ile
adopted child chiefly dependent upon and |
than twenty-three (23) years of age, unmarried and not gainfully employed or if such
dependent, regardless of age, is ineapable of self-support because of mental or physical defect.

XXX."


SECTION 2. Repealing Clause.- Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with any
provision of this Act is hereby amended or modified accordingly.

SETION 3. Effectivity Clause. - This Act shall take fifteen (15) days following its publication in
the official Gazette or in at least two (2) newspaper of general circulation.

APPROVED,

HON. GREG G. GASATAYA
Lone District, Bacolod City