Section 9Sec./Art. 9

Section 34 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 34. Deductions from Gross Income. -

x x x

(E) Bad Debts. -

(1) In General. - x x x

(2) Securities Becoming Worthless. - If securities, as defined in Section 22(T), are ascertained to be worthless and charged off within the taxable year and are capital assets, the loss resulting therefrom shall be considered as a loss from the sale or exchange of capital assets, on the last day of such taxable year. Securities held by a dealer in securities or an entity licensed by the appropriate government or an entity licensed by the appropriate government regulatory agencies to buy and sell securities either for the entity's own account or for the account of others, including banks and other financial intermediaries, shall be considered ordinary assets, as such securities held that are ascertained to be worthless shall be considered as ordinary losses that are allowed as deduction from taxable income.

x x x

(M) An additional deduction of fifty percent (50%) of the employer's actual contributions made to personal equity and retirement accounts under Republic Act No. 9505, otherwise known as "personal Equity and Retirement Account (PERA) Act of 2008,' shall be granted to private employers that contribute at least equal to the contributions of their employees, subject to the maximum allowable contribution under Republic Act No. 9505: Provided, That only private employers that contribute to all of their employee' PERA accounts shall be eligible for the additional allowable deduction."