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SIXTI<:I':NTII CONGIU:SS OF THE REPUBLIC ) 
OF TilE 1'1I1L1PPINES 
) 
First I{c~ular Scssion 
) 
·13 
DEC -9 P 4 :50 
SENATI': 
, 
, 
S. B. NO. 
2008 
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IUX'EIVEU BY;'r-
Introduccd by Scnatol' Maria LO\ll'dcs Nancy S. Binay 
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EXPLANATORY NOTE 
Republic Act No, 7277, or the "Magna Carta for Disabled Persons" instituted policies to 
ensure the rehabi I itation, "c1I~devclopment, and selt:rclianee of disabled persons and their 
integration into the mainstream of society. For this purpose, the State adopted measures to 
encourage private sector participation in promoting the welfare of disabled persons in order 
to encourage disabled persons to seek gaintlrl employment. 
Ilowever, once a disabled person is integrated into the mainstream society and afforded an 
opportunity j(,r sclj~dcvelopment, disabled persons still continue to bear the costs of therapy 
in ordcr to sustain vital fUllction and other medical expenses associated with their condition. 
To ease the burden of tinancial costs associated with their disabilities, this proposed bill seeks 
to address these hardship;: by using the tax system, as an instrument of social policy, and 
granting disabled person tax relief'. 
The special tax treatment accorded to disabled persons docs not seck to discriminate them as 
marginalized members of the society, but a recognition of the hard reality that disabled 
persons endure economic hardships which are unique to their physical condition. 
In view () I' the f(lregoing. the passage of' this bill is earnestly recommended. 
NCY S. B1NAY 
Senator 


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SIX'n:I(NTH CONGI{II;SS OJ;' TIll<: REPUBLIC ) 
OFTII~: I'IIILII'I'INI(S 
) 
First Regular Session 
) 
'13 lIC -9 P 4 :50 
SI(NATE 
S, B. NO. 2008 
aECEIVEll iH'. 
Introduced by Senator Maria Lourdes Nancy S. Binay 
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AN ACT GRANTING TAX RELIEF TO DISABLED PERSONS, AND FOR OTHER 
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PlJRPOSES 
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/Ie i! enoc!ed hy the Sella!e ond Ilouse oj'Representatives oj'the Philippines in Congress 
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ossemhieti: 
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SECTION l. '/'it Ie. This Act shall be known as "Tax Reliej'/or Disabled Persons Act of 
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2013." 
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SI,;CrtON 2. lJec/oration (!fl'olicy. The State alTirms the principle that disabled persons arc 
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part of Philippine society. The State shall give full support to thc improvement of the total 
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well-being or disahled pcrsons and their integration into the mainstream of society. Toward 
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this end, the State shall adopt policies ensuring the rehahilitation, sclt~development and self-
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reliancc or disabled persons. It shall develop their skills and potentials to enable them to 
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compete hlvorahly 1(1I' availahle opportunities. 
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SECTION 3. Ik/lnition oj'1'erms. As uscd in this Act, the term "disahled person" shall refer 
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to those surtcring iiull1 restriction or ditlerent ahilities, as a result of a mental, physical or 
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sensory impairment, to perf(lJ'In an activity in the manner or within the range considered 
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norl1lall(ll' a hUl1lall heing, as the terms is used in Republic Act No. 7277, or the Magna Carta 
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I(lr the Disahled Person. 
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SI,CTION 4. Incentives. Disabled persons shall be entitled to the following incentives: 
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2(-) 
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(a) 
(b) 
All allowallees and benefits granted to disahled persons shall be excluded 
lium the computation of gross income, and shall be exempt from taxation 
under Repuhlic Act No. R424, otherwise known as the "National Internal 
Ruvenllc Code of 1997"; 
Twenty percent (20%) discount on the sale of the goods and services on food, 
clothing, transportation, medicine, medical services, dental services, and other 
hasic necessity hom all estahlishments for the exclusive use and enjoyment or 
availl1lent of the disahled person. In the purchase of goods and services which 
arc on promotional discount, the disabled person can avail of the 
establishl1lent's offered discount or the 20% discount provided herein, 
whichever is higher and more Javorablc; and 


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(e) 
A minimum of live percent (5%) discount relative to the monthly utilization of 
water and electricity by households with disabled persons; prOVided, further, 
that the monthly consumption docs not exceed thirty cubic meters (30m2) of 
water and one hundred ki lowatt hours (100 kWh) of electricity; provided, 
Illrthennore, that the privilege is granted per household regardless of the 
number of disabled persons residing therein. 
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SI,CrtON 5. 'liLY f)eduction. The establishment granting the discount under Section 4 (b) 
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and (c) hereof lIlay claim the discounts providcd as tax deductions based on the cost of the 
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goods sold or services rendered; provided, that the cost of the discount shall be allowed as 
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deduction IhHll the gross income for the same taxable year that the discount is granted; 
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IJl'Ovided, further, that the total amount of the claimed tax deduction net of VAT, if 
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applicable, shall be included in their gross sales receipts for tax purposes and shall be subject 
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to proper doclII",ontalion and to the provisions of the National Intemal Revenue Code of 
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1997, as anHOnded. 
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SlcCTION 6. Implementation. The Bureau of Internal Revenue, in consultation with all 
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relevant government agencies shall isslle implementing rules and regulations witbin ninety 
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(90) days liOln ellCctivity hereof, and such other rules and regulations as may be necessary to 
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carry out the purpose 0 r this Act. 
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SECTION 7. SCIJ({)'(lhilitv Clause. ]J' any portion or provision of this Act is declared void 
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and unconstitutional, the remaining portions or provisions hereof sball not he affected by 
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such declaration. 
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SI':CTION II. RepmlinK Clause. All laws, decrees, orders, I'lIles and regulations, other 
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issllanees, or parts thereof inconsistent with the provisions of this Act arc hereby repealed or 
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modified accordingly. 
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SI':CTlON 9. I;!/i,ctivity Clause. This Act shall take effect fifteen (15) days after its complete 
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publication in at least two (2) national newspapers of general circulation. 
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Approved.