Thursday, September 20, 2007
Bill - Hon. Rhea Rizza F. Fajardo
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Baguio City
THIRD YOUTH CONGRESS
First Regular Session
H. No. ____
Introduced by Hon. Rhea Rizza F. Fajardo
EXPLANATORY NOTE
This Bill seeks to exempt Single Parents receiving minimum wage from the imposition of Income Taxes, amending certain provisions of Republic Act 8424, otherwise known as the National Internal Revenue Code of 1997, as amended.
The growing numbers of Single Parents is the sole factor for the creation of the bill. Single Parents refers to the parent who raise children without the assistance of another person, a parent who are likely to carry all the household responsibilities alone. With just a minimum income, the Single Parents are experiencing problem on how to raise their children and on how to provide for the needs of their children. It is clearly stated that the Single Parents are in the edge of poverty, it is so unfair and unjust that the government is taking away portion of their already subsistence income.
Even if the government has provided the Personal and Additional Exemption for all the Single Parents, they are still liable to pay income taxes at the end of the year. This Personal and Additional Exemption is just a mere deduction but not a real exemption. The law must be amended to correct this injustice.
Being a Single Parent is already a burden what more if they are earning a very minimum income. In order to ease their burden of paying income tax, we give them opportunities to use their money to daily expenses. Single Parents receiving minimum wage can no longer afford to be taxed. It is our obligation to ease their burden in any way we can.
In view of the foregoing, approval of the bill is earnestly recommended.
Rhea Rizza F. Fajardo
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Baguio City
THIRD YOUTH CONGRESS
First Regular Session
H. No. ____
AN ACT
EXEMPTING SINGLE PARENTS RECEIVING MINIMUM WAGE
FROM THE IMPOSITION OF INCOME TAXES
AMENDING FOR THIS PURPOSE THE REPUBLIC ACT 8424, OTHERWISE KNOWN AS THE NAT’L INTERNAL REVENUE CODE OF 1997
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Declaration of Policy-The state is mandated to establish a uniform and
equitable rule of taxation. To accelerate the Nation’s growth and development it is a
principle of the state to implement a tax policy that is appropriated to all the sectors of
the society.
SECTIONS 2. Chapter VII, Section 35(A) of Republic Act No. 8424 is hereby
amended to read as follows:
Title II Chapter VII-A Section 35
SEC. 35. Allowance of Personal Exemption for Individual Taxpayer. -
(A) In General. - For purposes of determining the tax provided in Section 24 (A)
of this Title, there shall be allowed a basic personal exemption as follows:
For single individual or married individual judicially decreed as legally
separated with no qualified dependents P20,000
For Head of Family P25,000
For each married individual P32,000
In the case of married individuals where only one of the spouses is deriving gross 8 income, only such spouse shall be allowed the personal exemption.
For purposes of this paragraph, the term 'head of family' means an unmarried or legally
separated man or woman with one or both parents, or with one or more brothers or
sisters, or with one or more legitimate, recognized natural or legally adopted children 12 living with and dependent upon him for their chief support, where such brothers or
sisters or children are not more than twenty-one (21) years of age, unmarried and not 14 gainfully employed or where such children, brothers or sisters, regardless of age are 15 incapable of self-support because of mental or physical defect.
PROVIDED, HOWEVER, THAT, SINGLE PARENTS ARE STILL LIABLE TO
PAY INCOME TAX LESS THE DEDUCTIONS OR PERSONAL AND
ADDITIONAL EXEMPTIONS AS STATED IN THIS SECTION. PROVIDED,
FURTHER, THAT SINGLE PARENTS WHO ARE CERTIFIED TO BE
RECEIVING THE MINIMUM WAGE SHALL NOT BE REQUIRED TO PAY
INCOME TAX OR OTHERWISE SHALL BE TOTALLY EXEMPTED FROM THE 4 IMPOSITION OF INCOME TAXES.
SECTION 3. The Bureau of Internal Revenue shall submit an annual report to the
Senate and House of Representatives. Said report shall contain the status of the
implementation of this Act; the total exemptions claimed; and the number of
Single Parents who availed of the exemptions under this Act.
SECTION 4. Implementing Rules and Regulation-Within 45 days from the
Effectivity of this Act, The Bureau of Internal Revenue shall promulgate the
necessary rules and regulations for the effective implementation of this Act.
SECTION 5. Separability Clause- If any provision or part of this Act is held
invalid or unconstitutional, the other pars or provisions shall continue to be in effect.
SECTION 6. Repealing Clause- All laws, decrees, orders, rules and regulations, and 15 any part thereof, inconsistent with this Act, are hereby repealed or modified
accordingly.
SECTION 7. Effectivity Clause- This Act shall take effect upon itsApproval.
Approved,Labels: ways and means
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