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T
 
THIRTEENTH CONGRESS 
OF THE PHILIPPINE 
First Regular Session 
First Regular Session 
NAT 
. No. 
I 
Introduced by Senator S. R. Osmefia Ill 
EXPLANATORY NOT 
Taxation is the lifeblood of government. It is upon taxation that government 
chiefly relies to obtain the means to carry on its operations and it is of utmost 
importance that the modes adopted to enforce the collection of taxes levied should be 
summary and interfered with as little as possible. 
The Bureau of Internal Revenue contributes over 80 percent of the 
government's total revenue. 
As a means to further improve revenue collection, 
this bill seeks to exempt certain taxpayers (Le. pure compensation income earners 
with one employer) from the' filing of income tax returns and transfer the said 
responsibility to their employers. 
Without compromising revenue collection, it 
becomes the duty of the employers to collect, remit and report tax collections to the 
government, 
In view of the foregoing passage of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLI 
First Regular Session 
OF THE PHILIPPINE 
SENAT 
S. No. 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
PROVIDING FOR THE EXEMPTION OF FIXED INCOME EARNERS FROM THE 
FILING OF INCOME TAX RETURNS, AMENDING FOR THE PURPOSE SECTION 
51 (A)(2)(b) 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 Republic of the 
Philippines in Congress assembled: 
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SECTION I .  Section 51 (A)(2)(b) of Republic Act No. 8424, as amended, 
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is hereby amended to read as follows: 
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"SECTION 51. 
Individual Return. - 
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"(A) 
XXX 
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'I( 1) 
xxx 
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"(a) 
XXX 
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"(b) 
XXX 
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"(c) 
xxx 
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"(d) 
XXX 
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"(2) 
The following individuals shall not be required to file an income tax 
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ret u rn : 
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"(a) 
XXX 
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"(b) 
An individual [with respect to] EARNING pure compensation 
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income, as defined in Section 32(A)(1), [derived] from sources within the 
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Philippines AND FROM ONE EMPLOYER DURING THE TAXABLE 
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YEAR, REGARDLESS OF THE AMOUNT, the income tax on which has 
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been correctly withheld under the provisions of Section 79 of this Code 
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AS EVIDENCED BY THE ANNUAL INFORMATION RETURN FILED BY 
THE EMPLOYER AS REQUIRED BY SECTION 58(C) OF THIS CODE; 
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PROVIDED, THAT THE EMPLOYEE AND THE EMPLOYER EXECUTE 
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A JOINT CERTIFICATION STATING THE GROSS INCOME OF THE 
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EMPLOYEE AND THE AMOUNT OF TAX WITHHELD AS DULY 
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ATTACHED TO THE ANNUAL INFORMATION RETURN AND FILED 
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WITH THE BIR: Provided, That an individual deriving compensation 
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concurrently from two or more employers at any time during the taxable 
year REGARDLESS OF THE AMOUNT shall file an income tax return[: 
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Provided, further, That an individual whose pure compensation income 
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derived from sources within the Philippines exceeds Sixty thousand 
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14 
XXX” 
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pesos (P60,OOO) shall also file an income tax return]; 
SEC. 2. Repealing Clause. - All laws, decrees, executive orders, rules 
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and regulations, or parts hereof inconsistent with the provision of this Act are 
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hereby repealed, amended or modified accordingly 
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SEC. 3. This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation 
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whichever comes earlier. 
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Approved, 
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