NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHIUPPINES 
)
First Regular Session 
)
SENATE
S. No. 227
Sl ' 1. ill- 4
-■n
V'/iaffup oI li)? li-- n'tin-p
•22 JUL-7 P5S6
RtCEP’ DBV
Introduced by Senator MARK A. VILLAR
AN ACT
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS 
OF CHILDREN WITH SPECIAL NEEDS
EXPLANATORY NOTE
This Bill seeks to address the financial concerns of families that have children 
with special needs.
Due to the circumstances of these families, they face more challenges 
compared to those families considered regular and healthy. They have to pay for 
evaluation and assessment fees, therapy, special education services offering 
interventions, assistive technology or electronic devices to aid learning and 
adaptability of the children. Hence, the costs of taking care of children with special 
needs tend are more compared to regular children.
Further, this is to recognize that different abled persons are as much part of 
our society as everyone else and it is the policy to give full support to the improvement 
of the total well-being of disabled persons and their integration into the mainstream 
of society.
lyZ.
L
MARK A. VILLAR
Senator


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
o(
S. No._^
72 JUL-7 P5 56
RtCEIVLOBv.
Introduced by Senator MARK A. VILLAR
AN ACT
GRANTING TAX DEDUCTIONS TO PARENTS AND LEGAL GUARDIANS OF 
CHILDREN WITH SPECIAL NEEDS
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled:
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Section 1. Declaration of Policy - It is the policy of the State to promote the
2 right of every individual to relevant quality education regardless of sex, age, breed,
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socio-economic status, physical and mental condition, social or ethnic origin, and
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political and other affiliation. Further, the State shall promote and maintain equality of
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access to education and medical care as well as the enjoyment of benefits of education
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by all its citizens.
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Sec 2. Definition of Terms. - For the purposes of this Act, these terms are
8 defined as follows:
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1. Autism - A developmental disability significantly affecting verbal and 
nonverbal communication and social interaction, generally evident before 
age three (3), that adversely affects a child's educational performance. 
Other characteristics often associated with autism are engagement in 
repetitive activities and stereotyped movements, resistance to 
environmental change or change in daily routines, and unusual responses 
to sensory experiences. The term does not apply if a child's educational 
performance is adversely affected because the child has an emotional


disturbance.
2. Deafness- A hearing impairment that is so severe that the child is impaired 
in processing linguistic information through hearing, with or without 
amplification that adversely affects a child's educational performance.
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3. Emotional Disturbance - A condition exhibiting one or more of the following 
characteristics over a long period of time and to a marked degree that 
adversely affects a child's educational performance:
a) 
An inability to learn that cannot be explained by intellectual/sensory 
or health factors;
b) 
An inability to build or maintain satisfactory interpersonal 
relationships with peers and teachers;
c) 
Inappropriate types of behaviors or feelings under normal 
circumstances;
d) 
A general pervasive mood of unhappiness or depression; and
e) 
A tendency to develop physical symptoms or fears associated with 
personal or school problems.
The term includes schizophrenia. The term does not apply to children who 
are socially maladjusted, unless it is determined that they have an 
emotional disturbance.
4. Hearing Impaired - Impairment in hearing, whether permanent or 
fluctuating, that adversely affects a child's performance.
5. Inteiiectually Disabled - Significantly sub-average general intellectual 
functioning existing concurrently with deficits in adaptive behavior and 
manifested during the developmental period that adversely affects a child's 
performance.


6. Orthopedic Impairment - A severe orthopedic impairment that adversely 
affects a child's educational performance. The term includes impairments 
caused by congenital anomaly, impairments caused by disease, and 
Impairments from other causes.
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Z Quaiified Chiidren with Speciai Needs - means a legitimate, illegitimate or 
legally adopted child chiefly dependent and living with the taxpayer. This 
also covers children with special needs who are placed under the legal 
custody of an immediate family member or relative. The child should not be 
more than thirteen (13) years of age and must be assessed by the 
Department of Education's Special Education Division and a medical 
professional in order to qualify.
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Provided, however, that children who are permanently disabled and who 
are unable to fully take care of themselves are qualified no matter how old 
they are.
8. Specific Teaming Disabiiity - A disorder in one or more of the basic 
physiological processes involved in understanding or in using language, 
spoken or written, which may manifest itself in the imperfect ability to 
listen/think/speak/read, write, spell or do mathematical calculations. Such 
term includes conditions such as perceptual disabilities, brain injury, 
minimal brain dysfunction, dyslexia, and developmental aphasia
9. Speech or Language Impaired- communication disorder such as stuttering 
impaired articulation, language impairment, or a voice impairment that 
adversely affects a child’s educational performance.
10. Traumatic Brain Injury - An acquired Injury to the brain caused by an 
external physical force, resulting in total or partial functional disability or 
psychosocial impairment or both, and that adversely affects a child's 
educational performance. The term applies to open or closed head injuries
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resulting in impairments in one or more areas, such as cognition, language, 
memory, attention, reasoning, abstract thinking, judgment, problem solving, 
sensory, perceptual and motor abilities, psychosocial behavior physical 
functions, information processing, and speech. The term does not apply to 
brain injuries that are congenital or degenerative or to brain injuries induced 
by birth trauma.
11. Visual Impairment- impairment in vision that, even with correction adversely 
affects a child's educational performance. The term includes both partial and 
sight blindness.
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Sec 3. Deduction from Taxable Income. - A qualified taxpayer is entitled to a
11 deduction of Fifty Thousand Pesos (P50,000.00). Expenses that qualify for deduction
12 are:
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a) 
Tuition for a private school;
b) 
Therapy;
c) 
Diagnostic evaluations by a medical professional;
d) 
Tutoring;
e) 
Transportation expenses to school or a medical facility; and
f) 
Specialized instructional materials.
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The parent or legal guardian must provide more than half of the total financial
20 support for the child to qualify for the deduction.
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Sec 4. Implementing Rules and Regulations. - The Bureau of Internal Revenue
22 (BIR) in consultation with the Department of Education's (DepEd) Special Education
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Division and Department of Health (DOH) shall issue such rules and regulations as
24 may be necessary to carry out the purpose of this Act, within ninety days from its
25 enactment.
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Sec 5. Appropriations. - The amount needed for the initial implementation of


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1 this Act shall be taken from the current year's appropriations of the BIR. Thereafter,
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such sums as may be necessary for its continued implementation shall. Be included in
3 the annual General Appropriations Act.
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Sec 6. Separability Cause, - If any portion or provision of this Act is declared
5 unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in force and effect.
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Sec 7. Repealing Cause, - Any law, presidential decree or issuance, executive
8 order, letter of instruction, rule or regulation inconsistent with the provisions of this
9 Act is hereby repealed or modified accordingly.
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Sec 8. Effectivity, - This Act shall take effect fifteen (15) days following its
11 complete publication in a newspaper of general circulation.
Approved,