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1; 
THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE P ” E S  
) 
THIRD REGULAR SESSION 
1 
-. . 
SENATE 
S.B. No. 
Introduced by SENATOR ALFRED0 S. LIM 
EXPLANATORY NOTE 
Tax being the lifeblood of the economy, it is, therefore, the 
national policy to limit the grant of exemption and deduction of items 
to the few, as possible. 
On the other hand, €he State also recognizes that it and its 
present generation owe the stability, prosperity and unity of the 
people and the nation from the hardship, sacrifices and great 
contribution of its elderly and senior citizens, without whom, we would 
have been where we are now. 
In gratitude, the State must assist them considering that, with 
their age, physical limitation and even isolation; they need some form 
of assistance or relief from the financial burdens that they have €0 
bear. 
Since the State can no€ afford to provide the elderly and senior 
citizens direct financial support, at least, it can mitigate their financial 
hardship by providing them some form of tax relief. 


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Thus, it is the bill’s purpose to grant higher tax exemption to the 
elderly and senior citizens, than what the present law provides. And, 
considering that it is the Filipino culture to help their elders and aging 
parents, such assistance must likewise be given corresponding 
recognition by allowing the grateful son or daughter to claim for the 
tax. exemption for providing support to their parents who are 
considered elderly or senior citizens. 
Further, since under the present law, medical costs and 
expenses are not tax deductible, and surely, since it is the elderly and 
the senior citizens who need more and regular medical attention and 
treatment, it is time that they be allowed to claim such expenses, as 
deduction from their or their sonldaughter’s taxable income or 
earnings. 
A 
Senator 


THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
THIRD REGULAR SESSION 
1 
~- 
Introduced by SENATOR ALFRED0 S. LIM 
AN ACT 
EXEMPTING TEE BENEFITS OF SENIOR CITIZENS 
FROM THE VALUE ADDED TAX (VAT) AND OTHER 
SIMILAR TAX LAWS, AMENDING FOR TEE 
PURPOSE REPUBLIC ACT. NO. 9257 
Be it enacted by the Senate and the House of Representatives of the Philippines h 
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Congress assembled: 
SECTION 1. Amendment. - Section 4 of Republic Act No. 9257 is hereby 
amended to read as follows: 
Section 4. Privileges for the Senior Citizens.- The senior citizens shall be 
entitled to the following : 
(a) the grant of twenty percent (20%) discount kom all 
establishments relative to utilization of services in hotels and similar 
lodging establishments, restaurants and recreation centers, and 
purchase of medicines in all establishments for the exclusive use or 
enjoyment of senior citizens, including funeral and burial services for the 
death of senior citizens; 
(b) a minimum of twenty percent (20%) discount on admissjpn 
fees charged by theaters, cinema houses and concert halls, circuses, 
carnivals, and other similar places of culture, leisure and amusement for 
the exclusive use or enjoyment of senior citizens; 
(c) exemption &om the payment .of individual income taxes: 
Provided That their annual taxable income does not exceed the poverty 


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level as determined by the National Economic and Development 
Authority W D A )  for that year; 
(d) exemption from training fees for socioeconomic programs; 
(e) f?ee medical and dental services, diagnostic and laboratory 
fees such as, but not limited to, x-rays, computerized tomography scans 
and blood tests, in all government kcilities, subject to the guidelines to 
be issued by the Department of Health in coordination with the 
Philippine Health Insurance Corporation (PHILHEALTH); 
(9 the grant of twenty percent (20%) discount on medical and 
dental services, and diagnostic and laboratory €ees provided under 
Section 4(e) hereof, including professional fees of attending doctors in all 
private hospitals and medical facilities, in accordance with the rules and 
regulations to be issued by the Department of Health, in coordination 
with the Philippine Health Insurance Corporation; 
(g) the grant of twenty percent (20%) discount in fare for 
domestic air and sea travel for the exclusive use or enjoyment of senior 
citizens; 
(h) the grant of twenty percent (20%) discount in public railways, 
skyways and bus fare for the exclusive use and enjoyment of senior 
citizens; 
(i) educational assistance to senior citizens to pursue post 
secondary, tertiary, post tertiary, as well as vocational or technical 
education in both public and private schools through provision of 
scholarships, grants, financial aid, subsidies and other incentives to 
qualified senior citizens, including support for books, learning materials, 
and uniform allowance, to the extent feasible: Provided, That senior 
citizens shall meet minimu admission requirements; 
(i) to the extent practicable and feasible, the continuance of the 


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same benefits and privileges given by the Government Service Insurance 
System (GSIS), Social Security System (SSS) and PAG-IBIG, as the case 
may be, as are enjoyed by those in actual service. 
(k) retirement benefits of retirees from both the government and 
the private sector shaIl be regularly reviewed to ensure their continuing 
responsiveness and sustainability, and to the extent practicable and 
feasible, shall be upgraded to be at par with the current scale enjoyed by 
those in actual service. 
(1) to the extent possible, the government may grant special 
discounts in special programs for senior citizens on purchase of basic 
commodities, subject to the guideliies to be issued for the purpose by the 
Department of Trade and Industry (DTI) and the Department of 
Agriculture (DA); and 
(m) provision of express lanes for senior citizens in all 
commercial and government establishments; in the absence thereof, 
priority shall be given to them. 
In the availment of the privileges mentioned above, the senior 
citizen or elderly person may submit as proof of hidher entitlement 
thereto any of the following: 
(a) an ID issued by the city or municipal mayor or of the barangay 
captain of the place where the senior citizen or the elderly resides; 
(b) the passport of the elderly person or senior citizen concerned; 
and 
(c) other documents that establish that the senior citizen or elderly 
person is a citizen of the Republic and is at least sixty (60) years of age. 
The establishment may claim the discounts granted under (a), (0, 
(g) and (h) as tax deduction based on the net cost of the goods sold or 
services rendered: Provided, That the cost of the discount shall be 


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allowed as deduction from  TOSS income for the same taxable year that 
the discount is granted. Provided, further, That the total amount of the 
claimed tax deduction net of value added tax if applicable, shall be 
included in their gross sales receipts for tax purposes and shall be subject 
to proper documentation and to the provisions of the National Internal 
Revenue Code, as amended. PROVZDED, FZN?LY, THAT, TEE 
ABOVE-ENUMERATED PRIVlLEGES AND/OR ANY OTHER 
BENEFITS ELSEWHERE GRANTED IN THIS ACT, SHALL NOT 
BE REDUCED, DIMINISHED NOR DELETED OR, IN ANY 
OTHER 
MANNER, 
ADVERSELY 
CHANGED 
TO 
THE 
DETRIMENT OF THE SENIOR CITIZENS, BY WAY OF ANY 
LEGISLATIVE 
ACT 
AND/OR 
ANY 
ADMINISTRATIVE 
RULINGS, EXISTING OR MAY BE ENACTED AFTER TmS 
ACT, INCLUDING BUT NOT LIMITED TO R.A. NO. 9337 OF 
JULY 1,2005; ENSURING AMONG OTHERS THAT THE SALES 
BY ANY RETAILER, WHOLESALER, MANUFACTURER OR 
ANY OTHER ,ESTABLISHMENT TO A SENIOR CITIZEN OF 
MEDICINFS, FOOD AND OTHER SUPERMARKET ITEMS AND 
ANY OTHER PRODUCTS AND/OR SERVICES CONCERNING 
THE HEALTH, SUBSISTENCE AND WELL-BEING OF SAID 
SENIOR CITIZEN SHALL NOT BE SUBJECTED TO ANY 
VALUE ADDED TAXES AND/OR ANY OTHER NATIONAL OR 
LOCAL TAXES. 
Section 2. Promulgation of Rules. - The O6ce of Senior Citizens Affairs 
(OSCA), the Department of Trade and Industry and the Bureau of Internal 
Revenue shall promulgate not later than fifteen (IS) days from effectivity of this 
Act, Rules and Regulations for the implementation of this Act. 
Section 3 .  Penalty for VioZation. - Any person, proprietor, manager, 


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owner or employer of any store, firm or commercial establishment found 
violating this Act shall, upon conviction, be sentenced to suffer the penalty of six 
(6) months to three (3) years imprisonment or a fme of Three Thousand Pesos 
@3,000.00) or both in the discretion of the court. 
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Section 4. EfectiviQ. - This Act shall take effect fifteen (15) days after 
its publication in a newspaper of general circulation. 
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Approved