Republic Act No. 9504

Full Title

AN ACT AMENDING SECTIONS 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997

Date of Approval

2008-06-17

Senate Bill No.

S. No. 2393

URL (Congress)

View PDF file from House of Representatives

URL (gov.ph)

Official Gazette link

URL (Supreme Court)

Supreme Court link to the resource

URL (Senate)

PDF link from senate.gov.ph

House Bill No.

H. No. 3971

Digital Resource

View PDF file as uploaded in Senate website

Congress

14th Congress of the Republic

Issuance Category

Legislative Issuance

Subjects

INCOME TAX

NATIONAL INTERNAL REVENUE CODE OF 1997

REPUBLIC ACT NO. 8424, AS AMENDED -- AMENDMENTS AND REPEALS

Revenue

TAX DEDUCTIONS -- WAGES

TAX RELIEF ACT OF 2008

TAXATION

Official Gazette Details

Official Gazette Source

Official Gazette vol. 104 no. 35 page 5842 (9/1/2008)

Amendment Note

RA 8424, secs. 22, 24, 34, 35, 51 & 79

Legislative Issuance Type

Republic Act

Body

Republic Act No. 9504

Signed on June 17, 2008

Republic of the Philippines

Congress of the Philippines

Metro Manila

Fourteenth Congress

First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand seven.

[REPUBLIC ACT NO. 9504]

AN ACT AMENDING SECTIONS 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997

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 definitions after Subsection (FF) to read as follows:

“SEC. 22. Definitions. — When used in this Title:

“(A) x x x

“xxx

“(FF) xxx

“(GG) The term ‘statutory minimum wage’ shall refer to the rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE).

“(HH) The term ‘minimum wage earner’ shall refer to a worker in the private sector paid the statutory minimum wage, or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned.”

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. —

“(1) x x x

“x x x; and

“(c) On the taxable income defined in Section 31 of this Code, other than income 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 P10,000	5%
“Over P10,000 but not over P30,000	P500 + 10% of the excess over P10,000
“Over P30,000 but not over P70,000	P2,500 + 15% of the excess over P30,000
“Over P70,000 but not over P140,000	P8,500 + 20% of the excess over P70,000
“Over P140,000 but not over P250,000	P22,500 +25% of the excess over P140,000
“Over 250,000 but not over P500,000	P50,000 + 30% of the excess over P250,000
“Over P500,000	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 shall be exempt from the payment of income tax on their taxable income: Provided, further, 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.

“xxx.”

SEC. 3. Section 34 (L) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, 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 Subsection (M) hereof, in computing taxable income subject to income tax under Sections 24(A); 25(A); 26; 27(A); (B) and (C); and 28(A)(1), there shall be allowed the following deductions from gross income:

“(A) Expenses. —

“xxx.

“(L) Optional Standard Deduction. — In lieu of the deductions allowed under the preceding Subsections, an individual subject to tax under Section 24, other than a nonresident alien, may elect a standard deduction in an amount not exceeding forty percent (40%) of his gross sales or gross receipts, as the case may be. In the case of a corporation subject to tax under Sections 27(A) and 28(A)(1), it may elect a standard deduction in an amount not exceeding forty percent (40%) of its gross income as defined in Section 32 of this Code. Unless the taxpayer signifies in his return his intention to elect the optional standard deduction, he shall be considered as having availed himself of the deductions allowed in the preceding Subsections. Such election when made in the return shall be irrevocable for the taxable year for which the return is made: Provided, That an individual who is entitled to and claimed for the optional standard deduction shall not be required to submit with his tax return such financial statements otherwise required under this Code: Provided, further, That except when the Commissioner otherwise permits, the said individual shall keep such records pertaining to his gross sales or gross receipts, or the said corporation shall keep such records pertaining to his gross income as defined in Section 32 of this Code during the taxable year, as may be required by the rules and regulations promulgated by the Secretary of Finance, upon recommendation of the Commissioner.

“(M) x x x—

“xxx.”

SEC. 4. Section 35 (A) and (B) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby amended to read as follows:

“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 amounting to Fifty thousand pesos (P50,000) for each individual taxpayer.

“In the case of married individuals where only one of the spouses is deriving gross income, only such spouse shall be allowed the personal exemption.

“(B) Additional Exemption for Dependents. — There shall be allowed an additional exemption of Twenty-five thousand pesos (P25,000) for each dependent not exceeding four (4).

“The additional exemption for dependents shall be claimed by only one of the spouses in the case of married individuals.

“In the case of legally separated spouses, additional exemptions may be claimed only by the spouse who has custody of the child or children: Provided, That the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions herein allowed.

“For purposes of this Subsection, a ‘dependent’ means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect.

“xxx “

SEC. 5. Section 51 (A) (2) 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. 51. Individual Return. —

“(A) Requirements. —

“(1) Except as provided in paragraph (2) of this Subsection, the following individuals are required to file an income tax return:

“(a) x x x;

“xxx.

“(2) The following individuals shall not be required to file an income tax return:

“(a)x x x;

“(b) An individual with respect to pure compensation income, as defined in Section 32(A)(1), derived from sources within the Philippines, the income tax on which has been correctly withheld under the provisions of Section 79 of this Code: Provided, That an individual deriving compensation concurrently from two or more employers at any time during the taxable year shall file an income tax return;

“(c) x x x; and

“(d) A minimum wage earner as defined in Section 22(HH) of this Code or an individual who is exempt from income tax pursuant to the provisions of this Code and other laws, general or special.

“xxx.”

SEC. 6. Section 79 (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. 79. Income Tax Collected at Source. —

“(A) Requirement of Withholding. — Except in the case of a minimum wage earner as defined in Section 22(HH) of this Code, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with the rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner.

“xxx.”

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 is hereby amended or modified accordingly.

SEC. 9. Effectivity Clause. — This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

(Sgd.) MANNY VILLAR.
President of the Senate

(Sgd.) PROSPERO C. NOGRALES
Speaker of the House
of Representatives

This Act which is a consolidation of House Bill No. 1990 and Senate Bill No. 2009 was finally passed by the Senate and the House of Representatives on April 22, 2008 and March 12, 2008.

(Sgd.) EMMA LIRIO-REYES
Secretary of the Senate

(Sgd.) MARILYN B. BARUA YAP
Secretary General
House of Representatives

Approved: June 17 2008

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

Source: Official Gazette

Senate Bill

S. No. 2393

House Bill

H. No. 3971

By Request

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Transcript of Plenary Debates
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Conference Committee (Bicam) Report
Turned-over Documents
Vertical Files and Newspaper Articles
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Bill Note

Senate Bill First in Billing

Amends Particular Issuances Link

Republic Act No. 8424

Legislative History

Entitled:

AN ACT ESTABLISHING THE APO REEF IN SABLAYAN, OCCIDENTAL MINDORO AS PROTECTED AREA UNDER THE CATEGORY OF NATURAL PARK AND ITS PERIPHERAL WATERS AS BUFFER ZONES, PROVIDING FOR ITS MANAGEMENT, AND FOR OTHER PURPOSES

[ FIRST REGULAR SESSION, 14TH CONGRESS ]

[ 2008 ]

6/11/2008 Prepared and submitted jointly by the Committee(s) on ENVIRONMENT AND NATURAL RESOURCES and FINANCE with Senator(s) M. A. MADRIGAL, LOREN B. LEGARDA and "COMPANERA" PIA S. CAYETANO as author(s) per Committee Report No. 74, recommending its approval in substitution of SBNos. 177 and 1068;

6/11/2008 Sponsor: Senator "COMPANERA" PIA S. CAYETANO;

6/11/2008 Committee Report Calendared for Ordinary Business;

6/11/2008 Transferred from Ordinary Business to Special Order;

6/11/2008 Sponsorship speech of Senator "COMPANERA" PIA S. CAYETANO;

8/26/2008 Co-sponsorship speech of Senator Miriam Defensor Santiago;

8/26/2008 Motion of Senator Zubiri that he be made coauthor and cosponsor of the Bill;

8/26/2008 Clarificatory questions of Senator Enrile;

8/26/2008 Interpellations of Senators Gordon and M.A. Madrigal;

8/26/2008 Period of interpellations closed;

10/6/2008 Period of committee amendments;

10/6/2008 Period of committee amendments closed;

10/6/2008 Period of individual amendments;

10/9/2008 On motion of Senator Pangilinan, the Body reopened the period of committee amendments;

10/9/2008 Period of committee amendments;

10/9/2008 Period of committee amendments closed;

10/9/2008 Period of individual amendments;

[ 2009 ]

12/16/2009 Period of individual amendments closed;

12/16/2009 Senators ALAN PETER "COMPANERO" S. CAYETANO, JINGGOY P. EJERCITO-ESTRADA, JUAN PONCE ENRILE, AQUILINO Q. PIMENTEL JR. and JUAN MIGUEL F. ZUBIRI were made coauthors as manifested by Senator Zubiri;

12/16/2009 Approved on Second Reading with Amendments;

[ 2010 ]

1/7/2010 Printed copies were distributed to the Senators;

1/18/2010 Approved on Third Reading;

1/18/2010 In favor: (12) EDGARDO J. ANGARA, BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, "COMPANERA" PIA S. CAYETANO, MIRIAM DEFENSOR SANTIAGO, JINGGOY P. EJERCITO-ESTRADA, JUAN PONCE ENRILE, FRANCIS "CHIZ" G. ESCUDERO, GREGORIO B. HONASAN II, M. A. MADRIGAL and JUAN MIGUEL F. ZUBIRI;

1/18/2010 Against: N o n e;

1/18/2010 Abstention: N o n e;

1/20/2010 Sent to the House of Representatives requesting for concurrence;

Committee Report Senate Link

View Committee Report

View PDF link of Committee Report no. 74

Committee Report No.

74

Text as Filed

SBN-2393 (AS FILED)

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Legislative History

View Legislative History in Senate website

Floor Activity

View Floor Activity in Senate website

Committee Referral

View Committee Referral in Senate website

Entitled:
AN ACT ESTABLISHING THE APO REEF IN SABLAYAN, OCCIDENTAL MINDORO AS PROTECTED AREA UNDER THE CATEGORY OF NATURAL PARK AND ITS PERIPHERAL WATERS AS BUFFER ZONES, PROVIDING FOR ITS MANAGEMENT, AND FOR OTHER PURPOSES
[ FIRST REGULAR SESSION, 14TH CONGRESS ]
[ 2008 ]
6/11/2008	Prepared and submitted jointly by the Committee(s) on ENVIRONMENT AND NATURAL RESOURCES and FINANCE with Senator(s) M. A. MADRIGAL, LOREN B. LEGARDA and "COMPANERA" PIA S. CAYETANO as author(s) per Committee Report No. 74, recommending its approval in substitution of SBNos. 177 and 1068;
6/11/2008	Sponsor: Senator "COMPANERA" PIA S. CAYETANO;
6/11/2008	Committee Report Calendared for Ordinary Business;
6/11/2008	Transferred from Ordinary Business to Special Order;
6/11/2008	Sponsorship speech of Senator "COMPANERA" PIA S. CAYETANO;
8/26/2008	Co-sponsorship speech of Senator Miriam Defensor Santiago;
8/26/2008	Motion of Senator Zubiri that he be made coauthor and cosponsor of the Bill;
8/26/2008	Clarificatory questions of Senator Enrile;
8/26/2008	Interpellations of Senators Gordon and M.A. Madrigal;
8/26/2008	Period of interpellations closed;
10/6/2008	Period of committee amendments;
10/6/2008	Period of committee amendments closed;
10/6/2008	Period of individual amendments;
10/9/2008	On motion of Senator Pangilinan, the Body reopened the period of committee amendments;
10/9/2008	Period of committee amendments;
10/9/2008	Period of committee amendments closed;
10/9/2008	Period of individual amendments;
[ 2009 ]
12/16/2009	Period of individual amendments closed;
12/16/2009	Senators ALAN PETER "COMPANERO" S. CAYETANO, JINGGOY P. EJERCITO-ESTRADA, JUAN PONCE ENRILE, AQUILINO Q. PIMENTEL JR. and JUAN MIGUEL F. ZUBIRI were made coauthors as manifested by Senator Zubiri;
12/16/2009	Approved on Second Reading with Amendments;
[ 2010 ]
1/7/2010	Printed copies were distributed to the Senators;
1/18/2010	Approved on Third Reading;
1/18/2010	In favor: (12) EDGARDO J. ANGARA, BENIGNO S. AQUINO III, JOKER P. ARROYO, RODOLFO G. BIAZON, "COMPANERA" PIA S. CAYETANO, MIRIAM DEFENSOR SANTIAGO, JINGGOY P. EJERCITO-ESTRADA, JUAN PONCE ENRILE, FRANCIS "CHIZ" G. ESCUDERO, GREGORIO B. HONASAN II, M. A. MADRIGAL and JUAN MIGUEL F. ZUBIRI;
1/18/2010	Against: N o n e;
1/18/2010	Abstention: N o n e;
1/20/2010	Sent to the House of Representatives requesting for concurrence;