Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

First Regular Session

House Bill No.__ 38081

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

The State is duty-bound to to give the common man a relief from the barrage of
problems he encounters day to day, and support for his obligations to himself, his family, and
society. One important, nay, critical social issue that constantly faces each of us that can
never be set aside is health. Yet, it is quite sad that the national budget for health grows
proportionately smaller each year, while the amount set aside for debt servicing steadily
grows.

Priority must be given to the health of its citizens in any government's agenda if it is
to build a prosperous nation. Healthy citizens contribute more to the gross national product
than a sickly labor force that spends more time in sickbay than contributing to productivity.

This bill seeks to enact this line of thinking by allowing taxpayers to deduct expenses
incurred for their health problems from their gross income. In this manner, the health benefits
that the State is having a hard time to provide due to its limited resources, will be indirectly
met through this proposed measure.

In view of the urgency of this measure, its passage is earnestly requested.

Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS,

First Regular Session

3581

House Bill No. _

ee

Introduced by Hon. Rodolfo G. Biazon

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AN ACT
INCLUDING MEDICAL EXPENSES AS ALLOWABLE TAX DEDUCTIONS FOR
INDIVIDUAL TAXPAYERS, AMENDING FOR THE PURPOSE SECTION 34 OF
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE TAX REFORM ACT
OF 1997

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

SECTION 1. Section 34 of Republic Act 8424 is hereby amended to read as follows:
Sec. 34. Deductions from Gross Income. ~ Except for taxpayers earning
compensation income arising from personal services rendered under an employer-employee
relationship where no deductions shall be allowed under this Section other than under
Subsection (M) AND N hereof, in computing taxable income subject to income tax under

Sections 24(A); 25(A); 26; 27(A), (B) and (C); and 28(A)(1), there shall be allowed the

following deductions from gross income:

(A) Expenses. —

XXX XXX XXX XXX

(N) HEALTH MAINTENANCE EXPENSES — EXPENSES INCURRED AS

PAYMENTS BY THE TAXPAYER AND/OR HIS DEPENDENTS FOR


PROFESSIONAL MEDICAL FEES, INCLUDING CONSULTATION

PRESCRIBED FOR DIAGNOSED

FEES, AND FOR MEDICINE:
ILLNESSES, SHALL BE ALLOWED AS DEDUCTIONS FROM HIS
GROSS INCOME: PROVIDED, THAT ALL SUCH EXPENSES ARE
SUPPORTED BY OFFICIAL RECEIPTS, MEDICAL CERTIFICATES

AND DOCTORS’ PRESCRIPTIONS:

PROVIDED FURTHER, THAT IN
THE CASE OF MARRIED TAXPAYERS, SAID DEDUCTION MAY
ONLY BE CLAIMED BY THE SPOUSE CLAIMING THE ADDITIONAL
EXEMPTION FOR DEPENDENTS.

Notwithstanding the provisions of the preceding Subsections, the Secretary of

Finance, upon the recommendation of the Commi:

joner, after a public hearing shall have
been held for the purpose, may prescribe by rules and regulations, limitations or ceilings for
any of the itemized deductions under Subsections (A) to (J), AND (N) of this Section:
Provided, That for purposes of determining such ceilings or limitations, the Secretary of
Finance shall consider the following factors: (1) adequacy of the prescribed limits on the
actual expenditure requirements of each particular industry; and (2) effects of inflation or
expenditure levels: Provided, further, That no ceilings shall further be imposed on items of
expense already subject to ceilings under present law.

SEC. 2. Implementing Rules and Regulations. — The Secretary of Finance shall
promulgate the necessary rules and regulations for the effective implementation of this Act.

SEC. 3. Repealing Clause. ~ All laws, decrees, orders, issuances, rules and regulations
and other issuances or parts thereof inconsistent with this Act are hereby repealed or modified

accordingly

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after publication in

two (2) national newspapers of general circulation.

Approved,

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