FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
S. B. NO. 
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Introduced by Senator Ralph G. Recto 
EXPLANATORY NOTE 
Bigger families have bigger needs. As such, large families tend to become the most 
vulnerable group having the smallest per capita expenditure and per capita savings. Thus, the 
bigger the family, the higher is the cost of living. 
This bill seeks to amend Republic Act No. 9504, by removing the limitation in the 
number of allowable dependents covered by the additional personal exemption for individual 
taxpayer, in order that large and usually poor families can avail of larger exemptions which could 
help alleviate poverty. 
Statistics show that in the past ten years, as family size increases, poverty worsens. 
Indicators such as poverty incidence, poverty gap, severity of poverty, mean vulnerability and 
vulnerability incidence have been observed to be directly proportional with family size. Thus, 
poor families have been observed to have larger families as compared to non-poor families. 
While the National Internal Revenue Code provides additional exemption for each 
dependent not exceeding four (4), it has deprived those who belong to large families by imposing 
limits on the number of exemptible dependents. Such limitation will not only add to the sorry 
plight of large and poor families, but it will also leave the poorest of the poor in a more 
precarious situation. 
The foregone revenues as a result of this amendment will be insignificant when compared 
to the positive impact in terms of reducing poverty incidence among large families. 
In view of the foregoing, the immediate approval of thi 


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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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eBFQ! OF THE S(("lEtA"!Y 
First Regular Session 
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SENATE 
S. B. NO. 213,9 
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Introduced by Senator Ralph G. RectO 
AN ACT 
REMOVING THE LIMITATION IN THE NUMBER OF ALLOWABLE DEPENDENTS 
COVERED BY THE ADDITIONAL PERSONAL EXEMPTION FOR INDIVIDUAL 
TAXPAYER, AMENDING FOR THE PURPOSE SECTION 4 OF REPUBLIC ACT NO. 
9504 
Be it enacted by the Senate and the House 0/ Representatives 0/ the Philippines in 
Congress assembled: 
SECTION 1. Section 4 of Republic Act No, 9504 is hereby amended to read as follows: 
, 
"SEC. 35, Allowance o/Personal Exemption/or Individual Taxpayer,-
"(A) In General. - For purposes of determining the tax provided in Section 24(A) of this 
title, there shall be allowed a basic personal exemption amounting to Fifty thousand pesos 
(P50,000) for each individual taxpayer, 
"In the case of married individual where only one of the spouses is deriving gross 
income, only such spouse shall be allowed the personal exemption, 
"(B) Additional Exemption/or Dependents. - There shall be allowed an additional 
exemption of Twenty-five thousand pesos (25,000) for each dependent. [not exceeding 
four (4)]" 
"The additional exemption for dependents shall be claimed by only one ofthe spouses in 
the case of married individuals. 
"In the case oflegally separated spouses, additional exemptions may be claimed only by 
the spouse who has custody of the child or children: 
[Provided, that the total amount of additional exemptions that may be claimed by both 
shall not exceed the maximum additional exemptions herein allowed.] 
"For purposes ofthis Subsection, a "dependent" means a legitimate, illegitimate or legally 
adopted child chiefly dependent upon and living with the taxpayer if such dependent is 
not more than twenty-one (21) years of age, unmarried and not gainfully employed or if 
such dependent, regardless of age, is incapable of self-support because of mental or 
physical defect. 
"xxx 
SEC. 2. Implementing Rules and Regulations. - The Bureau of Internal Revenue shall 
provide the necessary implementing rules and regulations within thirty (30) days upon the 
approval of this Act. 
SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
in at least (2) newspapers of general circulation or the Official Gazette. 
Approved,