SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.12~)8 
'13 
I 
lUG -1 P2 :05 
Introduced by SENATOR VICENTE C. SOTTO III 
The Constitution, Article XIV, Section 5 provides: 
"The State shall assign the highest budgetary priority to 
education and ensure that teaching will attract and retain its 
rightful share of the best available talents through adequate 
remuneration and other means of job satisfaction and 
fulfillment." 
We recognize the inevitable fact that our teachers playa crucial and 
significant role in molding our youth to become tomorrow's great leaders, 
movers, productive and responsible citizens. It is within their nurturing hands 
that lies the future of our youth and our nation. We consider them as our 
"modern day heroes". Teacher's Code of Ethics states that "each teacher is 
viewed as a trustee of the cultural and educational heritage of the nation, and 
is under obligation to transmit to learners such heritage as well as to elevate 
national morality, promote national pride, cultivate love of country, instill 
allegiance to the Constitution and respect for all duly constituted authorities, 
promote obedience to the laws of the State". Teachers are regarded as duly 
licensed professionals who possess dignity and reputation with high moral 
'values as well 'as technicai arid professional competence. 
In order to show our appreciation to our teachers who selflessly, 
untiringly and devotedly impart their knowledge and build the character of our 
students, it is apt for the Government to create measures which will promote 
the welfare and economic well-being of our teachers, specifically public school 
teachers whose salary are currently just a little higher than the minimum 
wage. This is in consonance with RA 4670 or the Magna Carta for Public 
School Teachers which aimed "to promote and improve the social and economic 
status of public school teachers, their living and working conditions, their 
terms of employment and career prospects in order that they may compare 
favorably with existing opportunities in other walks of life, attract and retain in 
the teaching profession more people with the proper qualifications, it being 
recognized that advance in education depends on the qualifications and ability 
of the teaching staff and that education is an essential factor in the economic 
growth of the nation as a productive investment of vital importance." 


The bill seeks to exempt public school teachers, particularly Teachers I, 
II and III from the payment of income tax. By lifting their burden of paying the 
income tax, we give our hard-working and dedicated teachers what they 
rightfully deserve; a gift for their unconditional love and sacrifice in making the 
youth our country's wealth and pride. 
In view of the foregoing, immediate passage of this bill IS earnestly 
sought. 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.~38 
Introduced by SENATOR VICENTE C. SOTTO III 
AN ACT PROVIDING TAX RELIEF TO PUBLIC SCHOOL TEACHERS 
BY EXEMPTING THEM FROM INCOME TAXATION, AMENDING FOR THE 
PURPOSE SECTIONS 22 AND 24A OF THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:: 
SECTION 1. Section 22 of Republic Act No. 8424, as amended, otherwise 
known as the National Internal Revenue Code of 1997, is hereby further 
amended by adding the following definition after Subsection (HH) to read as 
follows: 
"SEC. 22. Definitions. - when used in this Title: 
"(A) x x x. 
"xxx 
"(HH) x x x. 
(II) THE TERMS 'TEACHER I, TEACHER II AND TEACHER III' SHALL 
REFER TO THE BASIC CLASSROOM TEACHER POSITIONS IN 
PUBLIC ELEMENTARY AND SECONDARY SCHOOLS AS DEFINED BY 
THE DEPARTMENT OF EDUCATION (DEPED). 
(JJ) THE TERM 'PUBLIC SCHOOL' SHALL REFER TO EDUCATIONAL 
INSTITUTIONS 
ESTABLISHED 
AND 
ADMINISTERED 
BY 
THE 
GOVERNMENT. 
SEC. 2. Section 24(A) of Republic Act No. 8424, as amended, otherwise known 
as the National Internal Revenue Code of 1997, is hereby further amended to 
read as follows: 
"SEC. 24. Income Tax Rates. -
"(A) Rates of Income Tax on Individual Citizen and Individual Resident 
Alien of the Philippines. -
"(l)xxx: 


"x xx; and 
"(c) On the taxable income defined in Section 31 of this code, other than 
ir,come subject to tax under Subsections (B), (C) and (D) of this Section, 
derived for each taxable year from all sources within the Philippines by 
an individual alien who is a resident of the Philippines. 
"(2) Rates of Tax on Taxable Income of Individuals. - The tax shall be 
computed in accordance with and at the rates established in the 
following schedule: 
"Not over PIO,OOO 
5% 
"Over PIO,OOO but not over P30,000 
P500+ 10% of the excess over PI0,000 
"Over P30,000 but not over P70,000 
"Over P70,000 but not over P140,000 
"Over P140,000 but not over P250,000 
"Over P250,000 but not over P500,OOO 
"Over P5000,000 
P2,500+ 15% of the excess over P30,000 
P8,500+20% of the excess over P70,000 
P22,500+25% of the excess over P140,000 
P50,000+30% of the excess over P250,000 
P125,000+32% of the excess over P500,000 
"For married individuals, the husband and wife, subject to the provision 
of Section 51 (D) hereof, shall compute separately their individual income 
tax based on their respective total taxable income: Provided, that if any 
income cannot be definitely attributed to or identified as income 
exclusively earned or realized by either of the spouses, the same shall be 
divided equally between the spouses for the purpose of determining their 
respective taxable income. 
"Provided,. That minimum wage earners as defined in Section 22 (HH) of 
this Code AND PUBLIC SCHOOL TEACHERS WITH RANKS TEACHERS 
I, II AND III AS DEFINED IN SECTION 22 (II) OF THIS CODE shall be 
exempt 
from 
the 
payment 
of 
income 
tax 
on 
their 
taxable 
income: Provided, fwther, That the holiday pay, overtime pay, night shift 
differential pay and hazard pay received by such minimum wage earners 
shall likewise be exempt from income tax. 
SEC. 7. Separability Clause. - If any provision of this Act is declared invalid 
or unconstitutional, other provisions hereof which are not affected thereby 
shall continue to be in full force and effect. 
SEC. 8. Repealing Clause. -
Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with any provision of this Act as hereby amended or 
modified accordingly. 
SEC. 9. Effectivity Clause. - This Act shall take fifteen (15) days following its 
publication in the official Gazette or in at least two (2) newspaper of general 
circulation . 
. Approved,