Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

sd ‘ca
HOUSE BILL NO. 298

Authored by HON. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

The world has been gripped with fears of a global economic
meltdown, The problem has been so severe that stock markets have
fallen, large financial institutions have collapsed or been bought out,
and governments in even the wealthiest nations have had to come up
with rescue packages to bail out their financial systems and restore
trust which has weakened considerably. Inescapably, the extent of
these financial problems will affect the livelihoods of almost everyone
in our increasingly inter-connected world.

Now is the time to take the first important step toward meeting
the need for confidence building initiatives against the financial crisis.
Measures must be in place to strengthen the public’s trust in the
banking system, and more importantly, to secure employment and
income during these tough and trying times.

Thus, this proposed measure seeks to introduce transitory
measures that will provide small saver and consumer relief and
stability, build confidence in the financial system and encourage job
creation in the private sector. Specifically, a one-time stimulus income
tax refund to the maximum amount of Php5,000.00 for all fixed
income earners who paid income taxes is proposed. Likewise, a 90-day
moratorium on home foreclosures is introduced to provide temporary
relief to home buyers and the non-imposition of fees and charges as
penalties for early withdrawal of short term deposits is proposed, with
the intention of providing support to small saver households
experiencing cash flow problems during these
lean times. Finally, a 3-year program extending income tax credits for
employers hiring additional regular or permanent employees is
instituted under the proposed bill. Thus, for each additional regular or
permanent employee hired for at least 1 year, any employer is entitled
to a maximum income tax credit equivalent to 30 % of annual salary
of said employee. The creation of this program will stimulate job
creation even in lean times, at the same time rewarding employers
who continue to see the longer term.

In view of the foregoing, approval of this bill is earnestly

requested. 5

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.__2987
Authored by HON. JOSEPH VICTOR G. EJERCITO

AN ACT

INTRODUCING TRANSITORY MEASURES TO PROVIDE
CONSUMER AND SMALL SAVER RELIEF, PROMOTE INDIVIDUAL
ECONOMIC STABILITY AND BUILD INDIVIDUAL CONFIDENCE
BY PROVIDING A STIMULUS TAX REFUND TO FIXED INCOME
EARNERS, PROTECTING INTERESTS OF DEPOSITORS OF BANKS.
AND OF HOME OWNERS, AND, GIVING TAX CREDIT INCENTIVES
TO EMPLOYERS WHO PROVIDE NEW PERMANENT JOBS, AND
FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the “Transitory
Individual Economic ‘Stability and Confidence Building
Measures Act of 2010."

SEC. 2. One Time Income Tax Refund for All Fixed Income
Earners. - Notwithstanding the provisions of Republic Act No. 8424,
otherwise known as the National Internal Revenue Code, as amended,
and other applicable laws, there shall be allowed a one time income
tax refund for all fixed income earners to the maximum amount of Five
Thousand Pesos (Php5,000.00). In the event that the income tax due
of the fixed income earner is less than the maximum amount of Five
Thousand Pesos (Php5,000.00), then the one time tax refund shall be
equal to the income tax due. This income tax refund shall be applicable
only to calendar year ending in 2010.

The Department of Finance and the Bureau of Internal Revenue
shall issue the appropriate implementing rules and regulations to
govern this provision within a period of thirty (30) days from the
effectivity of this Act.

SEC. 3. Ninety Day Moratorium on Home Foreclosures. -
Notwithstanding the provisions of Republic Act No. 9507, otherwise
known as the “Socialized and Low-Cost Housing Loan Restructuring
and Condonation Act of 2008,” and, other applicable laws, there shall
be a moratorium on foreclosure of homes, for a period of ninety (90)
days from the effectivity of this Act. All relevant government agencies
shall respect the right of home owners to be secure in their mortgaged
homes during this ninety day (90) moratorium period.

SEC. 4. Non-Imposition of Penalties for Early Withdrawal.
~ Notwithstanding the provisions of Republic Act No. 6753, otherwise
known as The New Central Bank Act, as amended, and, other related


laws, all banks shall not be allowed to impose any charges or fees
representing penalties for early withdrawal by any depositor who
decides to withdraw his money in whole or in part, unless such deposit
was made for a period of five (5) years or more.

SEC. 5. Income Tax Credits for Employers Who Hire
Additional Regular or Permanent Employees. - Notwithstanding
the provisions of Republic Act No. 8424, otherwise known as the
National Internal Revenue Code, as amended, and other applicable
laws, there shall be allowed, for any person who hires or employs one
or more additional regular employees for at least one year, an income
tax credit equivalent to thirty percent (30%) of the gross annual salary
of each additional regular or permanent employee. Without prejudice
to the applicability of such salary expense of said additional regular or
permanent employees as a deduction against gross revenues of the
employer in the computation of income tax due, this income tax credit
may be automatically applied by the employer against its income tax
due. If after application of all the applicable income tax credits the
income tax due is zero, then no income tax due shall be deemed
payable and due. Any excess income tax credits may be carried over in
the succeeding period. This treatment of income tax credit for
additional regular or permanent employees shall be applicable for a
period of three (3) years from the effectivity of this Act and shall apply
for the whole of the last calendar year of the third year of the three
year period. For the purpose of this Section, an additional regular or
permanent employee shall refer to any person newly hired to provide
services that are necessary or desirable in the usual business of a
company in exchange for compensation and who does not provide
these services as part of an independent business, Provided that the
employment of such person should be for a newly created position in
addition to the existing staffing requirements of the company.

The Department of Finance and the Bureau of Internal Revenue
shall issue the appropriate implementing rules and regulations to
govern this provision within a period of thirty (30) days from the
effectivity of this Act.

SEC. 6. Separability Clause. - If, for any reason, any section
or provision of this Act shall be held unconstitutional or invalid, the
other section or provision not otherwise affected shall remain in full
force and effect.

SEC. 7. Repealing Clause. - All laws, presidential decrees,
executive orders, proclamations, rules and regulations which are
inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 8, Effectivity Clause. - This Act shall take effect fifteen

(15) days from its publication in the Official Gazette or in at least two
(2) newspapers of general circulation.

Approved,