Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2948

Introduced by Representative MARLYN PRIMICIAS-AGABAS

EXPLANATORY NOTE

It is the declared policy of the State to promote a just and dynamic social
order that will ensure the prosperity and independence of the nation and free the
people from poverty through policies that provide adequate social services, promote
full employment, a rising standard of living and an improved quality of life.
Furthermore, the State shall provide social justice in all phases of national
development and that the State values the dignity of every human person and
guarantees full respect for human rights.

Article XI, Section 11 of the 1987 Constitution provides that the State shall
adopt an integrated and comprehensive approach to health development which shall
endeavor to make essential goods, health and other social services available to all the
people at affordable cost. There shall be priority for the needs of the under-privileged,
sick, elderly, disabled, women, and children. The State shall endeavor to provide free
medical care to paupers.

In line with the declared policies and constitutional mandate, Republic Act
No. 9994, otherwise known as the Expanded Senior Citizens Act of 2010, amending
Republic Act No. 7432, otherwise known as An Act to Maximize the Contribution
of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for
Other Purposes, was enacted to grant additional benefits and special privileges in
recognition of the important place our senior citizens hold and role they play in the
society.

To further enhance such special privileges, it is proposed that the interest
income from any currency bank deposit and yield or any other monetary benefit
from deposit substitutes and from trust funds and similar arrangements of senior
citizens be exempted from the twenty percent (20%) final withholding tax.

This proposed measure is intended to encourage our senior citizens to save
their income or pension in banks and other financial institutions, ensuring that their
hard-earned life savings and retirement benefits are not reduced by taxes thereby
creating financial stability as they enjoy and go through the sunset stage of life.
However, the proposed measure provides for a cap of two hundred fifty thousand
pesos (Php 250,000.00) to prevent abuses of the special privilege

In view of the foregoing, the immediate passage of this bill is earnestly sought.

V. /
PRIMIGIAS-AGABAS
6* District, Pangasinan



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

2948

HOUSE BILL NO. ___**

Introduced by Representative MARLYN PRIMICIAS-AGABAS

AN ACT
EXEMPTING THE BANK DEPOSITS OF SENIOR CITIZENS FROM THE
TWENTY PERCENT (20%) FINAL WITHHOLDING TAX ON INTEREST
INCOME, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9994,
OTHERWISE KNOWN AS THE EXPANDED SENIOR CITIZENS ACT OF
2010

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

SECTION 1. Section 4 of Republic Act No. 9994, otherwise known as the
Expanded Senior Citizens Act of 2010, is hereby amended to read as follows:

“Section 4. Section 4 of Republic Act No. 7432, as amended by
Republic Act No. 9257, otherwise known as the "Expanded Senior
Citizens Act of 2003", is hereby further amended to read as follows:

“SEC. 4. Privileges for the Senior Citizens. -
The senior citizens shall be entitled to the following:
XXX

"(® provision of express lanes for senior citizens in all commercial and
government establishments; in the absence thereof, priority shall be
given to them; (and)

"© death benefit assistance of a minimum of Two thousand pesos
(Php2, 000.00) shall be given to the nearest surviving relative of a
deceased senior citizen which amount shall be subject to adjustments
due to inflation in accordance with the guidelines to be issued by the
DSWD; and

(m) exemption from the payment of the twenty percent (20%) final
withholding tax on interest from any savings account bank deposit
or trust fund and similar arrangements; Provided however that the
aggregate exemption as herein provided should not exceed two
hundred fifty thousand pesos (Php 250,000.00) for each senior
citizen.

XxX

SECTION 2. The senior citizen, in applying for the exemption, shall present
to the manager of the bank or financial institution in which he or she is a depositor


his or her senior citizen’s identification card issued by the Office of the Senior
Citizen Affairs (OSCA) of the place where the senior citizen resides.

Furthermore, where the senior citizen has two or more accounts in two or
more banks or financial institutions, he or she shall submit a notarized certification
disclosing such fact to the manager of the bank or financial institution.

SECTION 3. In cases falling in the immediately preceding paragraph where
the senior citizen has two or more accounts in two or more banks or financial
institutions, the banks or financial institutions concerned shall coordinate with each
other for purposes of the tax exemption privilege as herein provided.

SECTION 4. Implementing Rules and Regulations. - Within sixty (60) days from
the effectivity of this Act, the Secretary of the DSWD shall formulate rules and
regulations to carry out the provisions of this Act, in consultation with the
Department of Finance and five (5) NGOs or POs for the senior citizens duly
accredited by the DSWD.

SECTION 5. Separability Clause. — If any provision or part hereof is held
invalid or unconstitutional, the remainder of the law or provision not otherwise
affected shall remain valid and subsisting.

SECTION 6. Repealing Clause. ~ All laws, acts, ordinances, executive orders,
proclamations and administrative regulations, or parts thereof which are inconsistent
herewith are hereby repealed or modified accordingly.

SECTION 7. Effectivity. - This act shall take effect immediately after its
publication in two newspapers of general circulation.

Approved,