BIR issues rules on PWD tax perks

The Bureau of Internal Revenue (BIR) has issued the rules implementing the tax perks to be enjoyed by persons with disabilities (PWDs), including their exemption from the 12-percent value-added tax (VAT).

Revenue Regulations No. 5-2017 signed by Finance Secretary Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay this month laid down the rules for the tax privileges to be extended to PWDs under the Magna Carta for Persons with Disability as well as Republic Act No. 10754 signed into law in March last year.

Under the guidelines, qualified PWDs can claim at least 20-percent discount from hotels and lodging establishments, restaurants, recreation centers, theaters, cinema houses, concert hall, among other leisure and amusement facilities.

PWDs can also avail themselves of the discount from all drugstores for purchase of both branded and generic medicines as well as in all government and private hospitals and facilities offering dental and medical services.

The discount will also be extended to local air and sea transportation expenses as well as land transport fares.

The beneficiaries of PWDs can also get discounts for burial and funeral services upon presentation of the deceased’s death certificate and PWD identification card, although publication of obituary as well as memorial lot costs will not be discounted.

The 20-percent discount will be deducted from the amount net of the 12-percent VAT.

To illustrate, for an amount of sale with VAT worth P1,120, the P120 VAT will be deducted such that the 20-percent sales discount will be computed from the amount net of VAT or P1,000. As such, the total amount due for the PWD will only be P800.

Under the rules, establishment that grant sales discounts to PWDs for goods and services will be entitled to deduct such discounts from their gross income.

The rules nonetheless prohibit availment of double discounts such that a PWD who is also a senior citizen can only claim one 20-percent sales discount on a particular transaction, the BIR said. —BEN O. DE VERA