CONGRESS OF THE PHILIPPINES EIGHTEENTH CONGRESS First Regular Session
} HOUSE OF REPRESENTATIVES H. No. 304
BY REPRESENTATIVES SALCEDA, VILLAFUERTE, CUA, SUANSING (E.), SUANSING (H.), GARIN (S.), ROMERO, HOFER, TAMBUNTING, DELOSO-MONTALLA, CABREDO, DALOG, ONG (R.), BAUTISTA, CANAMA, JAVIER, SAVELLANO, PINEDA, SINGSON-MEEHAN, AMATONG, BAUTISTA-BANDIGAN, BARBERS, BOLILIA, BRAVO, CAMINERO, CHUNGALAO, DEFENSOR (M.), GATO, MACAPAGAL ARROYO, MANGAOANG, ROBES, SACDALAN, TALLADO, ORTEGA, PLAZA, VALMAYOR, GATCHALIAN, DY (F.), UY (J.), ACOSTA, AGARAO, BARZAGA, BILLONES, CASTRO (F.H.), FARIÑAS (R.C.), GULLAS, LAGON, MANGUDADATU, MENDOZA, MOMO, NOGRALES (J.J.), ONG (J.), REYES, ROMUALDEZ (F.M.), ROMUALDO, SALO, SANCHEZ, SUNTAY, VARGAS, ABUEG-ZALDIVAR, ARBISON, ARENAS, AUMENTADO, CALDERON, DELOS SANTOS, DIMAPORO (M.K.), ECLEO, GUICO, HERRERA-DY, MARQUEZ, LIM, MATUGAS, PIMENTEL, REMULLA, ROMUALDEZ (Y.M.), SIAO, TULFO, VARGAS ALFONSO, CHIPECO, NAVA, PALMA, TAN (A.S.), ALBANO (A.), ALBANO (R.), FLORES, GUYA, LACSON, PADIERNOS, SUAREZ (A.), DIMAPORO (A.), VILLANUEVA (N.), ANDAYA, BABASA, COLLANTES, DEL MAR, GARCIA (P.J.), SILVERIO, JALOSJOS, ALMARIO, BULUT, ENVERGA, ESTRELLA AND FONGWAN
AN ACT AMENDING SECTIONS 22, 24, 25, 27, 28, 29, 32, 34, 37, 38, 39, 42, 51, 52, 54, 56, 57, 73, 108, 121, 122, 123, 174, 176, 179, 181, 182, 183, 184, 185, 186, 187, 195, 198, AND 199; AND REPEALING SECTIONS 127, 175, 177, 178, 180, 188, 192, AND 193; ALL UNDER REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 1 2
SECTION. 1. Title. – This Act shall be known as the “Passive Income and Financial Intermediary Taxation Act.”
3
SEC. 2. Declaration of Policy. – The financial sector plays a significant role in the
4
long-term growth of the national economy. A key policy consideration is to allow the capital
5
market to develop as efficiently as possible, with the least intervention. The optimal taxation
6
of capital markets, and the products and transactions that come with them, is an essential
7
element in developing the capital market. Towards this end, the State recognizes the necessity
8
of a simpler, fairer, more efficient, and regionally more competitive tax system for passive
9
income and financial intermediation to encourage savings and develop as well as deepen the
10
capital markets. Accordingly, the State adopts the following policies:
1