> “, -~ y/ JO? Chapter /S Magna Carta for Senior Citizens and PWDs Declaration of Policies and Objectives As provided in the Constitution of the Republic of the Philippines, itis the declared policy of the State to promote a just and dynamic social order that will ‘ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate ‘social services, promote full employment, a rising standard of living and an improved quality of life. In the Declaration of Principles and State Policies in Article II, Sections 10 and 11, itis further declared that the State shall provide soclal justice in all phases of national developmont and that the Stato values the dignity of every human person and guarantees full respect for human rights (RA 9994), “Article Xill, Section 11 of the Constitution provides that the Sate shall adopt an integrated and comprehensive approach to health development which shall endeavor to mako essential goods, health and other social services available to all the people at affordable cost, Thore shall be priority for the needs of the underprivileged, sick, elderly, disabled, women and children Article XV, Section 4 of the Constitution Further declares that it Is the duty of the family to take care of its elderly members while the State may design programs of social security for them. Definition Refers to any Filipino citizen who Is a resident of the Philippines and who. is sixty (60) years old or above. It may apply to senior cltizens with dual citizenship status provided they prove their Filipino citizenship and have at least six (6) months residency In the Philippines, A resident citizen, for this purpose, | refer to a Filipino citizen with permanentiiegal residence in the Philippines, and shall Include one, who, having migrated to a foreign country, has returned to the Philippines with a definite intention to reside therein, and whose Immigrant visa has been ‘surrendered to the foreign government, 579‘ad ony — jor Citizens deriving income tanger fom compensation or eerwes se com a, income ofa Sern an PaY the taxa they le the retum: He eu to hg a8 a mininues ne Citizen is in the nature of compensation incor rie eu on the cars peed @arner under RA No. 9504, he shall be Pt 4 cn 2008 mpensation income subject to the oree Hom ings Polcable to minimum wage comers 18 rove ana FRR Therefore, a senior taxpayer MEMO", @ senior cian i taxable Just the an g ae discussed in Chapter 2 of this book, “ amar Income tax tor TeNaYeT. a senior oi lement of 20% jgct2en by a ert pa sng ae ee 1. The 20% final withhol ding tax on interest in jeez tax on ilerest income fom any curency Dank 2. The 15% final withholding tex on interest income from a de the expanded foreign currency deposit the expan \cy deposit system (Sec. !epOsitory bank under 24(8)0), NRC 3. Pre-termination of lo the Tax Code: Four years to less than five years ng-term depositor investment under Section 2481 5% ‘Three years to less than four years 12% Less than three years 20% 4. ‘The 10% final withholding tax: * On cash andlor property dividends actually or constructively received fron ‘a domestic corporation or from a joint stock company, insurance or muta fund company and a regional operating headquarters of a multinational company; or * On the share of an individual in the distributable net income after tax ofa Partnership (except a general professional partnership) of which he is a partner; or * On the share of an individual in the net income after tax of an association, a joint account, ora joint venture or consortium taxable as a corporation which he is @ member or a co-venturer (Sec. 24(B)(2), Tax Code). 580 Senior Citizens and PWOs ‘re Capital gains tax ftom sales of shares of stock not traded in the stock Mfenange (See. 24(C), Tax Code); and se 6% fa witiolding lax on presumed capal gains om sale of veal he ery. cassifed 25 capital asset, except captal gan presumed to have ope cod wom te able or depen af reba eares ce 2a Tax Code). [OTHER TAXES. A Senior Ciizen/PWD shall also be subject tothe folowing 7. Ztemal revenue taxes, among others, imposed under the Tax Code inl Value Added Tax or Other Percentage Taxes. If he is seltemployed or engaged in business or practice of profession, and his gross annwal sales and/or receipts exceeds the revised vat threshold of P3,000,000 (TRAIN Law) or such amount to which this may be adjusted pursuant to Sec. 109(1)(V) of the Tax Code, he shall be subject to VAT. Otherwise. he shall be subject to the 3% Percentage Tax under Section 116 of the Tax Code, as amended. + Donor’s Tax on all donations made by a Senior Citizen during any calendar year, unless exempt under a specific provision of law «Estate Tax. In the event of death, the estate of the Senior Citizen may also be subject to the estate tax following the rules enunciated under Tile Ill of the Tax Code and its implementing Regulations + Excise Tax on certain goods + Documentary stamp tax Vat, Percentage Taxes, Donors Tax, Estate Tax, Documentary Stamp Taxes and Excise Taxes are discussed in volume 2 ~ “Transfer and Business Taxation” Benefits for Senior Citizens Senior clizens, under under the law are entitled to the following benefits (RR 7- 2010, as amended) ‘8) 20% discount and exemption from VAT on their purchase of specified goods and services as follows: 1) Medicine and Drug Purchases including influenza and pneumococcal vaccines and such other essential medical supplies, accessories and equipment. Professional fees of attending physicians in alll private hospitals, medical facilities, outpatient clinics and home health care services. Professional fees of licensed health workers providing home health care services in all private hospitals, medical facilities, outpatient clinics, and home health care services Medical and dental services, diagnostic and laboratory fees (On actual fare for land transportation travel in actual fare for domestic air transport and sea shipping vessels and the tke 2) 581Senior Cf 7 Citisens and, Cn 7) oF thizats : restawnaiization of services in hotels and . 8) On aarants. recreation centers “ crouse a foes: charged by theaters, o) mueanearm a ober funeral funeral and burial services of senior citizens, imitar "edging estabiy, 1 cinema hou laces of eS 28 con OF culture, “Aner hay else, b) Exemy plion from the payment of individual income taxes of ©) The grat im nt eh Sant of 2 minimum of five percent (5%) discount relat relative to Seni clizonreiing ae oes ot excoad one hundred Kowa fase oe a et cota ic meters (80 m3) of water: Pr Ih) of electricity san granted per househ: ter: Provided, furthermore, That ty 8 tesiing @) Exemption from trai ing fees for socioeconomic programs; e) Fi , ) Free medical and dental services, dlagnostc and laboratory i ot limited to, xrays, computerized tomography scans and blood tne st government facilities, subject to the guidelines to be issued ty tec al Coordination with the PhilHeatth; Seeeotth f) The DOH shall administer free vaccination against the influenza Pneumococcal disease for indigent senior elizen patients; ”™™ WY 8 9) Educational assistance to senior citizens to pursue terry, vocational and technical education, as wel a shorter comes retooling in both public and private schools through provision of scholarships grants, financial aids, subsides and other incentives to qualified senor ciizens including support for books, leaning materials, and uniform allowances, to the extent feasible: Provided, That senior citizens shall meet minimum admission requirements; h) To the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS) the Social Security System (SSS) and the PAG-IBIG, as the case may be, as are enjoyed by those in actual service; Retirement benefits of retirees from both the government and the private sect shall be regularly reviewed to ensure their continuing responsiveness an# sustainability, and to the extent practicable and feasible, shall be upgraded? be at par with the current scale enjoyed by those in actual service: i) 582 D Nv é Senior Citizens and PWDs stent possible, the government may grant special scours in special oe eg sonor sizes on purchase af an cmmedis, abet He ems be ued for he purpose by te Gaparment of Tac and get oi) and tne Deparment of Agate (On) It expross anes for anor czas nal comme an goverment sono fein the absence there, pry shal be wen to them: and cable aastanco of aminimum of Two tounan poses (2.000) shall Dest oe the nooes suring eave cf deceased sei cizen whch be ae al be subject 1 ater de to maton m acardance wh sean 1 be sued by the OSD qotne®? aitment of Privi jiment of the privileges mentioned above, the senior citizen, or histher inthe avai id representative, may Submit as proof of hisiher entitled thereto any sy authorize lowing: of he (Oso entication card issued by the Office of the Senior Citizen Affairs an ident (Osc) Identification nationwide: «he passport of the senior eizen concemed: and ther documents that establish that the senior citizen is a ctizen of the opubic and is atleast sixty (60) years of age as further provided in the implementing rules and regulations. ‘of the place where the senior citizen resides: Provided, That the ‘ard issued by the particular OSCA shall be honored 1urchase of goods and services which are on promotional discount, the in can avail of the promotional discount or the discount provided herein, pt senior ‘whichever is higher. ‘Treatment of discounts granted to SCs “The establishment may claim the discounts granted under subsections (a) and (o)ot this section as tax deduction based on the cost of the goods sold or services fendered: Provided, That the cost of the discount shall be allowed as deduction {fom gross income for the same taxable year that the discounts granted: Provided, further, That the total amount ofthe claimed tax deduction net of VAT. if applicable, shal be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NICR), as amended.” Government Assistance a) EMPLOYMENT Senior citizens who have the capacity and desire to work, or be re ‘employed, shall be provided information and matching services to enable them to be productive members of society. Terms of employment shall conform with the provisions of the Labor Code, as amended, and other faws, rules and regulations. 583Adattio, Fi nal c “itisens > Seaior Citizens and. PW :, ™PENSation Expense Ses and py ‘or Citizens and. PWDs rivate enti etrogiY2"® entities that ing of abandoned, neglected, unatached,or homeless senior ctzens income! pat this Ac, shal be emBlOY senior citzeng wal-De pe guidelines formulated by the DSWO. ang wag eSe¥alentto tac ewe to an adaten® 2 py 12% "nd social enhancement serices* vhich provide senior ciizens 8S amended, netizens, subject (12) OF the tot AUN re Bon 4. $0 otunis for socazng, organizing, reve expression, and sel: er , the provisien st oun pa orrrverent: the corey Bt east six gy nevever That Such onan f Section ai 3525 care and fol0W-Up Services” for citzens who are discharged from the ay Ranier econ do MONS: Prova, nagey MEN ha te 2. afer or institution fr the aged, especialy those who have problems of Economig so"! Statistical Conrat® |S6St Poverty nen nual faintegation with family and community, wherein both the senior aizens and Development xcoerdnation Board 4 method aso nd their families are provided with counseling —_ Authority NEDA) ey NSCB). cr 4. neighborhood supper services” wherein the community or family members Partmer * , caregiving services to their frail, sick, or bedridden senior citizens; other g nt of Labor and E; provide ; jens : Li ment agencie: ‘ployment (D0) end {ivelinood Resource Sees SUCH 88, bul mor ogee Coorg arpstiute family care “inthe form of residential care or group homes for ), Shall as; (TLRC) and thy 10, the ration, - neglected, unat shite E88, design and 1 Departmen ¢® Techn” th the abandoned, neglected, unattached or homeless senior ciizens and Nd welfare oF lvelinood supp Ren a9 Program’ 2 ng! those incapable of sel-care Senior Ms >) EDUCATION or ctzang, 2 tat wap) Fons ” "Banzai °Os) for senior citizens, shall insta a rogr mal and nonformal ‘education. mi AMS tha ©) HEALTH The DOH, in coordination with local POs for senior citizens, shall instivis «nen unis (LGUs), program tor senierctizene shan 3 among ah National Prevention of Bnness Program sfine DOR sha 1 However, when urgency of; Sit : Public necessity purposes so require, such Ward may be used for emergency purposes, afer which, such “senior ne ward” shall be reverted to its nature as geriatric ward, d) SOCIAL SERVICES At least fifty percent (50%) discount shall be granted on the consumption of electricity, water, and telephone by the senior citizens center and residental care/group homes that are government-run or non-stock, non-profit domestic corporation organized and operated primarily for the purpose of promoting the 9 Ac 9) INCE ‘The national government shall include in its national shelter program the jal housing needs of senior citizens, such as establishment of housing units forthe elderly. .cESS TO PUBLIC TRANSPORT ‘The Department of Transportation and Communications (DOTC) shall fa program to assist senior clizens to fully gain access to public develop transport facilites. ENTIVE FOR FOSTER CARE “The government shall provide incentives to individuals or nongovernmental Institution caring for or establishing homes, residential communities or retirement vilages solely for, senior citizens, as follows: 4, realty tax holiday for the first five (5) years starting from the fist year of ‘operation; and 2. priority in the construction or maintenance of provincial or municipal roads. leading to the aforesaid home, residential community or retirement vilage. h) ADDITIONAL GOVERNMENT ASSISTANCE Social Pension Indigent senior citizens shall be entitled to a monthly stipend ‘amounting to Five hundred pesos (Php500.00) to augment the daily subsistence and other medical needs of senior citizens, subject to a review ‘every two (2) years by Congress, in consultation with the DSWD. Mandatory PhilHeath Coverage ‘All indigent senior citizens shall be covered by the national health, insurance program of PhilHealt. The LGUs where the indigent senior ciizons resides shall allocate the necessary funds to ensure the enrollment of their indigent senior ctizens in accordance withthe pertinent laws and regulationsa Senter Cy, Senior Citizens and PWD Social Saety Ne ‘exon cong, S28 *ConomiCs shocks, sla esist2NC® Intended aad py 17, isability (PWD) ns: peop for ah amended under RA 9442 and RA10754;) citizens. Th TS and cale to cushi 10, food, mejeoeial safety assistance mess Shall be ayy source edlicines, and financia ace IR shal ingen ble sath disability shal refer 0 an individual suftering fom restriction oF reside, the disaster/calami sistance for smi ne er ‘a result of mental, physical or sensory impairment to perform "subject to he guideines tobe mec LGUS where ng

: attributable to the vat exempt notte hin nen nen Pos rhs cr noe a fe wes oe ne rea Te expense account by DUSITESS ST or ID No. indicated in the records of sales. (Ne jishments shall De (c) To the extent practicable and feasible, the con and privileges given by the Government Service insurance Sn, a eet disalowed i. If there is no nal put tax attributable to ithe vat exempt sale claimed by establ Security S) \surance System ‘Rezy System (SSS), and Pag B16, a5 he case nay bo, a5 reopen ten ring Requirement “(d) To the extent possible, the , the government may grant special discounts ins programs for PWD on purchase of basic commodities, subject ote uae F the purpose by the Department of Trade and Ind ‘nd he Department of Agriculture (DA); and Mey nate “(e) Provision of express lanes for PWD in all commercial and governent establishments; in the absence thereof, priority shall be given to them. “The abovementioned privileges are available only to PWD who are Filipino citzers upon submission of any of the following as proof of his/her entitlement thereto b. +i) An identification card issued by the city or municipal mayor o barangay captain of the place where the PWD resi s 4 (i) The passport of the PWD concerned; or 588 person with disability, date of transactions anc ‘Additional Exemption for Individuals carin Prior to January 1, 2018 or before benefactor of a Qualified PWD, may claim a fiscussed in Chapter 2, for each PWD, if such of the following: a «d invoice number for every sales transaction to a PWD. 1g for PWDs (RR 5-2017) re the effectivity of TRAIN Law, a ,dditional exemption of P25,000 as PWD, regardless of age, satisfies all «Filipino citizen; within the fourth (4") civil degree of consanguinity or affinity to the taxpayeribenefactor; not gainfully employed; and chiefly dependent upon and living with the taxpayer/benefactor 589Seator Citizens ar, dry q Os Definition of terms as provided for under RR 5-2017 “Person with Disability (PWD)" ; PWDs are those who have long-term physical, mental, intellectual or sensory im which in interaction with various barriers may hinder their full and effective at men society on an equal basis with others. Persons with disability shay ene t lassified/categorized by the Department of Health (DOH). “Benefactor” ; ; | Benefactor shall refer to a Filipino citizen or resident alien, caring for, givin, and living with PWD, who is in fourth (4") civil degree of consanguinity or such PWD as dependent. 19 chief gy P affinity Cling DOCUMENTARY REQUIREMENTS: The taxpayer/benefactor of a PWD shall submit the following docume requirements to the Revenue District Office (RDO) where he is regien in order to claim additional exemption, for the first year of Claimin ‘ered exemption and after three (3) years or upon renewal of the pya he Pw whichever comes first Pio * Duly accomplished BIR Form 2305 = Photocopy of PWD ID issued by the Persons with Disability Affairs Office (PDAO) or the city/municipal Social Welfare Dey. Office (C/MSWDO) of the place the person with disabili or the National Council on Disability Affairs (NCDA). * Sworn Declaration/Identification of Qualified Dependent Pwo, Support and Relationship " "Birth Certificate of the PWD "Medical certificate attesting to disability issued by in accordance with the implementing rules and regulations of RA 10754: and * Barangay Certificate certifying that the PWD is living with the benefactor. lopment ity resides The submitted records of the PWD to the RDO must be used as reference for every taxable year, in order to validate the claime d additi i for the same PWD. ional exemption 590