Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
‘Second Regular Session

HOUSE aid NO. 5601

Introduced by Honorable CARMELO F. LAZATIN

EXPLANATORY NOTE

Despite being one of its main priorities, the government cannot cope with the rising demand for
quality and affordable health care services due to lack of resources and even lack of doctors in public
hospitals.

This measure seeks to address this alarming situation by encouraging all doctors to help address
the problem by providing free medical service and accepting promissory note from patients for services
rendered.

The doctors will be accorded tax credit in exchange for their charitable work and for helping
alleviate the government's problem.

Approval of this measure is eamestly sought.

First District, fampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS,
‘Second Regular Session

HOUSE BILLNO._SEO1

Introduced by Honorable CARMELO F. LAZATIN

AN ACT GRANTING TAX CREDIT TO DOCTORS GIVING
FREE MEDICAL SERVICE AND ACCEPTING PROMISSORY NOTE

Sec. 1. Title: This act shall be known as “Tax Credit for Doctors Act of 2011”.

Sec. 2. Declaration of Policy: Section 15, Article 2 of the 1987 Constitution clearly
mandates that it is State's policy to promote the right and health of the people instill health
consciousness among them.,.

In addition, Section 13, Article 11 of the 1987 Constitution declares that the State shall
adopt an integrated and comprehensive approach to health development which shall endeavor
to make essential goods, health and other social services available to all the people at
affordable cost

Sec, 3: Definition of terms: For the purpose of this Act, the following terms shall be
defined as stated below:

a. Promissory note -- an unconditional promise in writing made by the patient and/or
his/her next of kin to the hospital or medical clinic, engaging to pay on demand, or at
a fixed or determinable future time, a sum certain in money to order or to bearer.

b. Co-maker -- a person, natural or juridical, who binds himself jointly and severally to
pay the unpaid hospital bills or medical expenses/hospitalization expenses of the
patient

¢. Free medical service — All forms of medical service/procedure provided by a
physician to a patient at no cost.

Sec. 3. Tax credit: Doctors who render free medical service to qualified indigents duly
certified by the Department of Social Welfare and Development (DSWD) shall be given tax
credit equivalent to the amount of health service rendered. The tax credit shall be deducted from
the physician's gross income covered by the taxable year the service is rendered


Tax credit shall also be given to doctors who accept promissory note from patients who
fail to pay for services rendered. The promissory note shall be secured by a guarantee of a co-
maker, who will be jointly and severally liable with the patient for the unpaid obligation.

The Bureau of Intemal Revenue (BIR) shall tax the doctor for the supposed money
eamed indicated in the promissory note. Tax credit shall be given to a doctor who accepted the
promissory note for the immediate taxable year if ever a patient and/or co-maker fail to fulfill
their obligation within one year after the issuance of the note.

The BIR shall determine the value of tax credit to be given to doctors depending on
existing rules and regulations on taxation while the value of professional fees and medical
service rendered shall be regulated by the Relative Unit Value being implemented by the
Philippine College of Surgeons and other medical bodies that provide specific amount of fees
for a medical procedure

Sec. 4. Implementing Rules and Regulations — Within six (6) months from the
effectivity of this Act, the Secretary of Health, Commissioner of the Bureau of intemal Revenue
(BIR), the Secretary of the Department of Social Welfare and Development (DSWD) and other
agencies concerned shall promulgate rules and guidelines as may be necessary for the proper
implementation of this Act

Sec. 5. Separability Clause. -- If any provision of this Act shall be held unconstitutional
or invalid, the other provisions not otherwise affected shall remain in full force and effect.

Sec. 7. Repealing Clause. — All laws, executive orders or issuances, or any parts
thereof which are inconsistent herewith are hereby repealed or amended accordingly.

Sec. 8. Effectivity Clause. — This Act shall take effect upon its publication in at least
two (2) newspapers of general circulation.