![Page 1: RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 1997](https://reader037.vdocument.in/reader037/viewer/2022100505/577cbc731a28aba7118da53d/html5/thumbnails/1.jpg)
8/9/2019 RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 19…
http://slidepdf.com/reader/full/ra-9504-an-act-amending-section-22-24-34-35-51-and-79-of-republic-act 1/4
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 June 1! "00#
Amending RA 8424
AN AC$ A%&N'(N) S&C$(*N ""! "4! +4! +5! 51! AN' 9 *F R&P,-(C
AC$ N*. #4"4! AS A%&N'&' *$/&R(S& N*N AS $/& NA$(*NA
(N$&RNA R&2&N,& *F 199
Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled::
S&C$(*N 1. e!tion 22 of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as
the $ational &nternal Revenue 'ode of ())*, is here#y further amended #y adding
the following definition after u#se!tion + to read as follows:
/'. 22. Definitions. - when used in this 0itle:
+A 1 1 1.
1 1 1
+ 1 1 1.
+ the term 3statutory minimum wage3 earner shall refer to rate fi1ed #y
the Regional 0ri"artite age and 5rodu!tivity Board, as defined #y the
Bureau of 6a#or and /m"loyment tatisti!s +B6/ of the 7e"artment of
6a#or and /m"loyment +76/
+99 the term 3minimum wage earner3 shall refer to a wor%er in the "rivate
se!tor "aid the statutory minimum wage, or to an em"loyee in the "u#li!
se!tor with !om"ensation in!ome of not more than the statutory minimum
wage in the non-agri!ultural se!tor where heshe is assigned.
S&C. ". e!tion 24+A of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as
the $ational &nternal Revenue 'ode of ())*, is here#y further amended to read as
follows:
/'. 24. Income Ta Rates. -
+A Rates of Income Ta on Individual Citi!en and Individual Resident
"lien of the Philippines# -
+( 1 1 1:
1 1 1; and
+! n the ta1a#le in!ome defined in e!tion <( of this !ode, other than
in!ome su#=e!t to ta1 under u#se!tions +B, +' and +7 of this e!tion,
$ot over 5(>,>>> ........ ?@
ver 5(>,>>> #ut not over
5<>,>>>
........ 5?>>(>@ of the e1!ess over 5(>,>>>
ver 5<>,>>> #ut not over
5*>,>>>
........ 52,?>>(?@ of the e1!ess over
5<>,>>>
ver 5*>,>>> #ut not over 5(4>,>>> ........ 58,?>>2>@ of the e1!ess over 5*>,>>>
ver 5(4>,>>> #ut not over
52?>,>>>
........ 522,?>>2?@ of the e1!ess over
5(4>,>>>
ver 52?>,>>> #ut not over
5?>>,>>>
........ 5?>,>>><>@ of the e1!ess over
52?>,>>>
ver 5?>>>,>>> ........ 5(2?,>>><2@ of the e1!ess over
5?>>,>>>
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8/9/2019 RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 19…
http://slidepdf.com/reader/full/ra-9504-an-act-amending-section-22-24-34-35-51-and-79-of-republic-act 2/4
derived for ea!h ta1a#le year from all sour!es within the 5hili""ines #y an
individual alien who is a resident of the 5hili""ines.
+2 Rates of 0a1 on 0a1a#le &n!ome of &ndividuals. - 0he ta1 shall #e
!om"uted in a!!ordan!e with and at the rates esta#lished in the following
s!hedule:
or married individuals, the hus#and and wife, su#=e!t to the "rovision of
e!tion ?( +7 hereof, shall !om"ute se"arately their individual in!ome ta1
#ased on their res"e!tive total ta1a#le in!ome: Provided , that if any in!ome
!annot #e definitely attri#uted to or identified as in!ome e1!lusively earned
or realied #y either of the s"ouses, the same shall #e divided eCually #etween the s"ouses for the "ur"ose of determining their res"e!tive ta1a#le
in!ome.
Provided , 0hat minimum wage earners as defined in e!tion 22 +99 of
this 'ode shall #e e1em"t from the "ayment of in!ome ta1 on their ta1a#le
in!ome: Provided , further , 0hat the holiday "ay, overtime "ay, night shift
differential "ay and haard "ay re!eived #y su!h minimum wage earners
shall li%ewise #e e1em"t from in!ome ta1.
1 1 1.
S&C. +. e!tion <4+6 of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as
the $ational &nternal Revenue 'ode of ())*, is here#y amended to read as follows:
/'. <4. Deductions from $ross Income. - /1!e"t for ta1"ayers earning
!om"ensation in!ome arising from "ersonal servi!es rendered under an
em"loyer-em"loyee relationshi" where no dedu!tions shall #e allowed
under this e!tion other than under u#se!tion +Mhereof, in !om"uting
ta1a#le in!ome su#=e!t to in!ome ta1 under e!tions 24+A; 2?+A; 2D;
2*+A, +B, +'; and 28+A+(, there shall #e allowed the following
dedu!tions from the gross in!ome:
+A %penses. -
1 1 1.
+6 &ptional Standard Deduction. - &n lieu of the dedu!tions allowed under
the "re!eding u#se!tions, an individual su#=e!t to ta1 under e!tion 24,
other than a nonresident alien, may ele!t a standard dedu!tion in an amount
not e1!eeding forty "er!ent +4>@ of his gross sales or gross re!ei"ts, as the
!ase may #e. &n the !ase of a !or"oration su#=e!t to ta1 under se!tion 2*+A
and 28+A+(, it may ele!t a standard dedu!tion in an amount not e1!eeding
forty "er!ent +4>@ of it gross in!ome as defined in e!tion <2 of this 'ode.Enless the ta1"ayer signifies in his return his intention to ele!t the o"tional
standard dedu!tion, he shall #e !onsidered as having availed himself of the
dedu!tions allowed in the "re!eding u#se!tions. u!h ele!tion when made
in the return shall #e irrevo!a#le for the ta1a#le year for whi!h the return is
made: Provided , 0hat an individual who is entitled to and !laimed for the
o"tional standard shall not #e reCuired to su#mit with his ta1 return su!h
finan!ial statements otherwise reCuired under this 'ode: Provided , further ,
0hat e1!e"t when the 'ommissioner otherwise "ermits, the said individual
shall %ee" su!h re!ords "ertaining to his gross sales or gross re!ei"ts, or the
said !or"oration shall %ee" su!h re!ords "ertaining to his gross in!ome as
defined in e!tion <2 of this 'ode during the ta1a#le year, as may #e
reCuired #y the rules and regulations "romulgated #y the e!retary of inan!e, u"on re!ommendation of the 'ommissioner.
+M 1 1 1.
1 1 1.
S&C. 4. e!tion <?+A and +B of Re"u#li! A!t $o. 8424, as amended, otherwise
%nown as the $ational &nternal Revenue 'ode of ())*, is here#y amended to read as
follows:
/'. <?. "llo'ance of Personal %emption for Individual Tapayer . -
+A In $eneral . - or "ur"oses of determining the ta1 "rovided in e!tion
24+A of this title, there shall #e allowed a #asi! "ersonal e1em"tion
amounting to ifty thousand "esos +5?>,>>> for ea!h individual ta1"ayer.
&n the !ase of married individual where only one of the s"ouses is deriving
gross in!ome, only su!h s"ouse shall #e allowed the "ersonal e1em"tion.
+B "dditional %emption for Dependents. - 0here shall #e allowed an
additional e1em"tion of 0wenty-five thousand "esos +2?,>>> for ea!h
de"endent not e1!eeding four +4.
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8/9/2019 RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 19…
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0he additional e1em"tion for de"endents shall #e !laimed #y only one of
the s"ouses in the !ase of married individuals.
&n the !ase of legally se"arated s"ouses, additional e1em"tions may #e
!laimed only #y the s"ouse who has !ustody of the !hild or !hildren:
Provided , 0hat the total amount of additional e1em"tions that may #e
!laimed #y #oth shall not e1!eed the ma1imum additional e1em"tions
herein allowed.
or "ur"oses of this u#se!tion, a de"endent means a legitimate,
illegitimate or legally ado"ted !hild !hiefly de"endent u"on and living with
the ta1"ayer if su!h de"endent is not more than twenty-one +2( years of
age, unmarried and not gainfully em"loyed or if su!h de"endent, regardless
of age, is in!a"a#le of self-su""ort #e!ause of mental or "hysi!al defe!t.
1 1 1.
S&C. 5. e!tion ?( +A+2 of Re"u#li! A!t $o, 8424, as amended, otherwise %nown
as the $ational &nternal revenue 'ode of ())*, is here#y further amended to read asfollows:
/'. ?(. Individual Return. -
+A Re(uirements. -
+( /1!e"t as "rovided in "aragra"h +2 of this u#se!tion, the following
individuals are reCuired to file an in!ome ta1 return:
+a 1 1 1;
1 1 1.
+2 0he following individuals shall not #e reCuired to file an in!ome ta1
return:
+a 1 1 1;
+# An individual with res"e!t to "ure !om"ensation in!ome, as defined in
e!tion <2+A+(, derived from su!h sour!es within the 5hili""ines, the
in!ome ta1 on whi!h has #een !orre!tly withheld under the "rovisions of
e!tion *) of this 'ode: Provided , 0hat an individual deriving
!om"ensation !on!urrently from two or more em"loyers at any time duringthe ta1a#le year shall file an in!ome ta1 return;
+! 1 1 1; and
+d A minimum wage earner as defined in e!tion 22+99 of this 'ode or
an individual who is e1em"t from in!ome ta1 "ursuant to the "rovisions of
this 'ode and other laws, general or s"e!ial.
1 1 1.
S&C 3. e!tion *)+A of Re"u#li! A!t $o. 8424, as amended, otherwise %nown asthe $ational &nternal Revenue 'ode of ())*, is here#y further amended to read as
follows:
e!tion *). Income Ta Collected at Source. -
+A Re(uirement of )ithholding . - /1!e"t in the !ase of a minimum wage
earner as defined in e!tion 22+99 of this !ode, every em"loyer ma%ing
"ayment of wages shall dedu!t and withhold u"on su!h wages a ta1
determined in a!!ordan!e with the rules and regulations to #e "res!ri#ed #y
the e!retary of inan!e, u"on re!ommendation of the 'ommissioner:
1 1 1.
S&C. . Separability Clause. - &f any "rovision of this A!t is de!lared invalid or
un!onstitutional, other "rovisions hereof whi!h are not affe!ted there#y shall
!ontinue to #e in full for!e and effe!t.
S&C. #. Repealing Clause. - Any law, "residential de!ree or issuan!e, e1e!utive
order, letter of instru!tion, administrative order, rule or regulation !ontrary to or
in!onsistent with any "rovision of this A!t as here#y amended or modified
a!!ordingly.
S&C. 9. Effectivity Clause. - 0his A!t shall ta%e fifteen +(? days following its
"u#li!ation in the official $a!ette or in at least two +2 news"a"er of general
!ir!ulation.
A""roved,
+gd. PR*SP&R* C. N*)RA&S
"ea%er of the 9ouse of Re"resentatives
+gd. %ANN 2(AR
5resident of the enate
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8/9/2019 RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 19…
http://slidepdf.com/reader/full/ra-9504-an-act-amending-section-22-24-34-35-51-and-79-of-republic-act 4/4
0his A!t whi!h is a !onsolidation of 9ouse Bill <)*( and enate Bill $o. 22)< was
finally "assed #y the 9ouse of Re"resentatives and the enate on May 28, 2>>8 and
May 2*, 2>>8 res"e!tively.
+gd. %AR(N -. -AR,AAP
e!retary eneral
9ouse of Re"resenatives
+gd. &%%A (R(*R&&S
e!retary of enate
A""roved: June 1! "00#
+gd. )*R(A %ACAPA)AARR**
President of the Philippines