HOUSE OF REPRESENTATIVES
RECEIVED
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

ISTRATION UNIT

House Bill No._ 969 INDEX SERVICE |

Introduced by: HON. YEDDA MARIE ROMUALDEZ

AN ACT.
PROVIDING FOR TAX INCENTIVES FOR THE RELIEF AND REHABILITATION OF
DEVASTATED COMMUNITIES COVERED BY A STATE OF CALAMITY

EXPLANATORY NOTE

The Philippines is one of the countries that is often ravaged and devastated by strong typhoons.
Around 19 tropical storms enter the Philippine Area of Responsibility in a typical year and, of these,
usually 6 to 9 make landfall

Notwithstanding all the disaster preparation and coordination plans there were still significant
losses of life, injuries, and damage to property when typhoon Yolanda (International Code Name:
Haiyan), considered as the world’s strongest typhoon ever recorded, hit Philippine Territory. Thousands
of people perished from thirty six provinces; and damage to business, property and agriculture were in
such magnitude that economic activities were placed on standstill

Last November 11, 2013, President Benigno Simeon C, Aquino Ill issued presidennat
Proclamation No, 682 declaring our country on a national state of emergency because of the devastation
by typhoon Yolanda,

The National disaster Risk Reduction and Management Council statistics cannot approximate the
horrible experiences that the people in the Visaya’s, southern part of Luzon and Northern part of
Mindanao went through.

Since the government cannot do it alone, we must encourage private sector participation to help
the vietims of the calamity

The 2013 General Appropriations Act would show that the budget is not going to be enough to cope with
the reconstruction and rehabilitation needs. The national government must encourage the participation of
the private sector. It becomes imperative therefore, that Congress should introduce measures in line with
this policy thrust

Immediate passage of this bill is urgently sought

of YEDDA|MAQIE ROMUALDEZ.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 963

Introduced by: Hon. YEDDA MARIE ROMUALDEZ

AN ACT
PROVIDING FOR TAX INCENTIVES FOR THE RELIEF AND
REHABILITATION OF DEVASTATED COMMUNITIES COVERED
BY A STATE OF CALAMITY

Be it enacted by the Senate amd House of Representative of the Congress assembled:

Section 1. Declaration of Policy. — It is the policy of the State to encourage the
participation of every member of the society towards the rehabilitation of devastated

communities during natural disasters through voluntary sharing of resources

Section 2. Tax Holiday for Donors — Notwithstanding any provision of law to the
contrary, there will be no imposition of the Donor’s Tax for all monetary contributions and the
equivalent monetary value of items donated, granted or bestowed for humanitarian and relief
purposes during natural disasters; provided, that such donations, grants, endowments or
contributions were used actually, directly and exclusively for the primary purpose of relief
operations during such disasters,

Section 3. Tax Incentives occasioned by Calamitous Events


a.) For purely compensation earners ~ notwithstanding Section 34 (first paragraph) of the
National Internal Revenue Code (as amended), donations made by purely
compensation income earners to the government or to charitable institutions,
occasioned by calamitous events, shall be treated as allowable deductions

4.) For Judicial Entities ~ Donations made by judicial entities to the government or ¢

charitable institutions, occasioned by calamitous events, shall be deductible in full

Seer

in 4. Preferential rates for Trailblazers ~ Sole proprietorships, partnerships, or
corporation which immediately resumes or initiates new business within the stricken areas shall
be given preferential rates with regard to business fees and taxes to help in the rehabilitation

program of the government.

Section 5. /mplementing Rules and Regulations ~ The Secretary of finance, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate the necessary Rules

and Regulations to implement the pro

ions of this Act within thirty (30) days from its
effecttivity.

Sect

n 6. Separability Clause. If any provision of this Act is declared unconstitutional or

invalid, the provisions not affected thereby shall continue to be in full force and effect

Section 7. Repealing Clause. All laws, republic acts, presidential decrees, orders, rules
and regulations or other issuance of government agencies inconsistent with the provisions of this

Act are hereby repealed, amended or modified accordingly

Section 8. Effectively Clause. This Act shall take effect fifteen days after its publication

in the Official Gazette.

Approved

YEDDA MA ROMUALDEZ