HOUSE °F REPRESENTATIVES
Republic of the Philippinks

HOUSE OF REPRESENTAJIIVES RECEIVED
Quezon City pate: 7 JUL 2016

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SEVENTEENTH CONG!

REGISTR \TION UNIT

First Regular Session] gy sc ano INDEX SERVICE

House Bill No, 12’

Introduced by HON, ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

The State is duty-bound to give the common man a relief from the barrage of
problems he encounters day to day, and support for his obligations to himself, his family, and
society. One important, nay, critical social issue that constantly faces each of us that can
never be set aside is health. Yet, quite sad that the national budget for health grows
proportionately smaller each year, while the amount set aside for debt servicing steadily
grows.

Priority must be given to the health of its citizens in any government's agenda if it is
to build a prosperous nation. Healthy citizens contribute more to the gross national product
than a sickly labor force that spends more time in sickbay than contributing to productivity.

This bill seeks to enact this line of thinking by allowing taxpayers to deduct expenses
incurred for their health problems from their gross income. In this manner, the health benefits
that the State is having a hard time to provide due to its limited resources, will be indirectly
met through this proposed measure.

In view of the urgency of this measure, its passage is earnestly requested.

y i,
A Ad, M.
RO: NO RUFINO B./BIAZON

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS

First Regular Session

House Bill No, 127°

Introduced by HON, ROZZANO RUFINO B. BIAZON

AN ACT
INCLUDING MEDICAL EXPENSES AS ALLOWABLE TAX DEDUCTIONS FOR
INDIVIDUAL TAXPAYERS, AMENDING FOR THE PURPOSE SECTION 34 OF
REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE TAX REFORM ACT
OF 1997

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

SECTION 1. Section 34 of Republic Act $424 is hereby amended to read as follows:
“Sec. 34, Deductions from Gross Income, ~ Except for taxpayers

earning compensation income arising from personal services rendered under

an employer-employee relationship where no deductions shall be allowed

under this Section other than under SubsectionS (M) AND N hereof, in

5(A);

26; 27(A), (B) and (C); and 28(A)(1), there shall be allowed the following

computing taxable income subject to income tax under Sections 24(A);

deductions from gross income:
(A) Expenses. —

XXX XXX XXX XXX

(N) HEALTH MAINTENANCE EXPENSES ~ EXPENSES INCURRED
AS PAYMENTS BY THE TAXPAYER AND/OR HIS

1


DEPENDENTS FOR PROFESSIONAL MEDICAL FEES,
INCLUDING CONSULTATION FEES, AND FOR MEDICINES
PRESCRIBED FOR DIAGNOSED ILLNESSES, SHALL BE
ALLOWED AS DEDUCTIONS FROM HIS GROSS INCOME:
PROVIDED, THAT ALL SUCH EXPENSES ARE SUPPORTED BY
OFFICIAL RECEIPTS, MEDICAL CERTIFICATES AND
DOCTORS? PRESCRIPTIONS: PROVIDED FURTHER, THAT IN
THE CASE OF MARRIED TAXPAYERS, SAID DEDUCTION
MAY ONLY BE CLAIMED BY THE SPOUSE CLAIMING THE
ADDITIONAL EXEMPTION FOR DEPENDENTS.”

“Notwithstanding the provisions of the preceding Subsections, the

Secretary of Finance, upon the recommendation of the Commissioner, after a
public hearing shall have been held for the purpose, may prescribe by rules
and regulations, limitations or ceilings for any of the itemized deductions
under Subsections (A) to (J), AND (N) of this Section: Provided, That for
purposes of determining such ceilings or limitations, the Secretary of Finance
shall consider the following factors: (1) adequacy of the prescribed limits on
the actual expenditure requirements of each particular industry; and (2) effects
of inflation or expenditure levels: Provided, further, That no ceilings shall
further be imposed on items of expense already subject to ceilings under
present law.”

SEC. 2. Implementing Rules and Regulations. — The Secretary of Finance shall
promulgate the necessary rules and regulations for the effective implementation of this Act.
SEC. 3. Repealing Clause. — All laws, decrees, orders, issuances, rules and regulations

and other issuances or parts thereof inconsistent with this Act are hereby repealed or modified
accordingly.


SEC. 4, Effectivity. ~ This Act shall take effect fifteen (15) days after publication in
two (2) national newspapers of general circulation,

Approved,