Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
EXPLANATORY NOTE 
In the advent of modernity, every trade or transaction has undergone 
certain changes and developments which ultimately bring about a safe, easier, 
and more efficient way of conducting business. In this day and age, carrying 
money in our pockets have more often been regarded as less advantageous, if not 
totally unnecessary. Other safer means, such as the use of credit or debit cards 
have been considered as acceptable methods of payment. 
From its scanty origins tracing back to the 1920s, we have witnessed how 
the credit card market boomed and thrived over the years. The computerization 
and digitalization of the global society are by and large part of the reason for the 
worldwide acceptance of credit or debit cards as an alternative for money. Indeed, 
credit cards have revolutionized the financial habits of people and have made 
significant change in the world of business as well as in every country’s economy. 
Credit or debit cards represent an integral part of our lives – from the smallest 
unit of the society such as a household to the largest conglomeration of global 
activities. 
People all around the world conduct their day to day activities using cards 
instead of actual money especially in most western countries. For one, compared 
to the latter, cards are safer to carry around as it cannot be easily used when stolen. 
Secondly, even if one loses, it is replaceable. Also, the credit card system offers 
a great method for tracing one’s expenses. Banks are usually very cautious about 
credit transactions and provide the cardholder a certain degree of safeguard by 
providing digital notifications such as email or short messaging services (SMS) 
of pending transaction through one-time password (OTP) facility or transaction 
beyond the customer’s normal spending. 
It is about time that we also revolutionize the outdated method of one 
important transaction every citizen in our own country makes, or is bound to make 
–payment of taxes.
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4:07 pm
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Through this bill, the use of credit cards or debit cards will become an 
acceptable way to pay taxes. Using credit advantages to this are (1) the flexibility 
to pay credit card balances overtime (2) the possible rewards coming from card 
issuers; and lastly, (3) the assurance that the tax payment has been made through 
a trusted institution. On the other hand, the State will also benefit from the fact 
that it may now collect from the banks issuing such cards which have sufficient 
funds and has a better capacity of paying. 
In a way, allowing the use of credit and debit cards for the payment of taxes 
will also encourage more individuals to pay properly their tax obligation. Evasion 
thereof may be lessened if people will have an alternative, that is – delayed 
payment secured by the credit card system. In such a scenario, the State will have 
no problem collecting from every taxable individual what is due of them as it can 
directly collect from his or her issuing bank or financial institution. Banks, on the 
other hand, will have no trouble collecting the accumulated credit card debt from 
its individual cardholders because they have been expertly doing this practice for 
decades now. 
Clearly, allowing the use of credit card or debit cards serves as a win-win 
solution for all the parties involved. Hence, the approval of this bill is persistently 
sought. 
EDWIN L. OLIVAREZ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
AN ACT ALLOWING THE USE OF CREDIT CARDS OR DEBIT 
CARDS FOR THE PAYMENT OF TAXES IN THE PHILIPPINES 
Section 1. Short Title. This Act shall be known as the Credit or Debit Card 
Tax Payment of 2023. 
Section 2. Credit or Debit Card as Commercially Acceptable Mode of Tax 
Payment. The use of credit cards or debit cards shall now be considered as a 
commercially acceptable mode of paying any kind of taxes imposed upon a 
person by the State to the extent and under the conditions provided in the 
implementing rules and regulations prescribed by the Bureau of Internal Revenue 
(BIR). 
Section 3. Limitation. A taxpayer may not use the credit or debit cards 
issued under the name of a person other than himself/herself for the payment of 
his/her taxes due. 
Section 4. Authorization by the Bureau. The BIR may authorize select 
companies to process payment of taxes through credit and debit cards on its 
behalf, and these companies may charge taxpayers a reasonably and regulated 
amount of processing fee. 
Section 5. Confidentiality. No person may use or disclose any information 
relating to credit or debit card transaction obtained pursuant to this Act other than 
for purpose directly related to the processing of such transactions or the billing or 
collection of amounts charged or debited pursuant thereto. 
Section 6. Exceptions to the Confidentiality Rule. Section 5 of this Act 
may admit of certain exceptions, to wit: 
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(a) Debit or credit card issuers or other acting on behalf of such issuers may 
also use and disclose such information for purposes directly related to 
servicing an issuer’s accounts. 
 
(b) Debit or credit card issuers or other directly involved in the processing 
of credit or debit card transactions or the billing or collection of amount 
charged or debited thereto may also use and disclose such information 
for purpose directly related to –  
 
(1) Statistical risk and profitability assessment; 
(2) Transferring receivables, accounts, or interest therein; 
(3) Auditing the account information; and 
(4) Complying with the laws of the Philippines or any valid court order 
pursuant to a criminal investigation. 
 
Section 7. Ultimate Solidary Liability of Taxpayer and Issuing Bank. 
When for any reason the use of credit cards or debit cards in the payment of taxes 
proved to (1) have been done fraudulently or in contravention or circumvention 
of any law specially to evade tax obligations, the taxpayers shall be solidarily 
liable with the bank which issued the credit card for actual and complete payment 
of taxes dues, without prejudice to the filing by the BIR of civil, criminal and/or 
administrative charges against any person or persons conniving for the purpose 
of evading taxes due. An individual’s bankruptcy shall not discharge credit card 
debt incurred from taxes. 
 
Section 8. Liability of Guaranteeing Banks. If the credit or debit card 
which has been guaranteed expressly by a bank or any financial institution, is not 
duly paid, the State shall, in addition to its right to exact payment from the party 
originally indebted therefor, have a lien for the guaranteed amount of the 
transaction upon all the assets of the institution making such a guarantee, and 
such amount shall be paid out of such assets in preference to any other claims 
whatsoever against such guaranteeing financial institution. 
 
Section 9. Implementing Rules and Regulations. The BIR shall 
promulgate the Implementing Rules and Regulations to carry out the provisions 
of this Act. Such rules and regulations shall take effect upon their publication in 
three (3) newspapers of general circulation. 
 
Section 10. Repealing Clause. – All laws, presidential decrees, letters of 
instructions, executive orders, rules and regulations, insofar as they are 
inconsistent with this Act, are hereby repealed or amended as the case may be. 
 


Section 11. Separability Clause. – In the event that any provision of this 
Act or any portion thereof is declared unconstitutional by a competent court, the 
other provisions shall not be affect thereby and shall remain valid and 
enforceable. 
 
Section 12. Effectivity Clause. – This Act shall take effect after its 
complete publication in at least three (3) newspapers of general circulation. 
 
APPROVED.