GMA proposes tax perks for caregivers of elderly parents

By Delon Porcalla (The Philippine Star), Feb 15, 2017

MANILA, Philippines – Former president and now House Deputy Speaker Gloria Arroyo has filed a bill that seeks to provide additional tax exemption for taxpayers who take care of their elderly parents.

House Bill 1522 seeks to amend Sec. 35 of Republic Act 8424, or the National Internal Revenue Code of 1997, to include an additional exemption of P25,000 for each elderly parent being cared for by a taxpayer.

“An additional exemption of P25,000 for each elderly parent shall likewise be allowed to the individual taxpayer: provided, that the elderly parent is chiefly dependent on and living with the taxpayer,” she said.

“One praiseworthy Filipino value is devotion to family ties. Married children take care of their parents by supporting them during their twilight years as an act of gratitude for all pains and sacrifices.”

“Thus, it is not surprising to see family members who provide their aging parents a wide array of assistance from medications, adult healthcare and in some cases, medical procedures,” Arroyo noted.

Under her proposal, an elderly is defined as any parent who is at least 60 years old with no means of support.

The prevailing law provides an individual taxpayer an additional exemption of P25,000 for each child dependent not exceeding four.

Granting additional exemption for those taking care of their elderly parents is geared towards relieving them from tax burden and at the same time allowing them to save money which can be used to meet the nutrition, education, medicines and other basic needs of other dependents.

Arroyo said RA 7432, or the Senior Citizens Act, allows a taxpayer, who is head of the family, to include a senior citizen as a dependent under the NIRC.

However, this privilege was not expressly provided under RA 8424 which is the reason why there is need for a new legislation in order for individual taxpayers to fully avail of this additional tax exemption.