Taxation Special Topics
rehabilitation system for disabled senior citizens to foster
RA 9994
Expanded Senior Citizens Act of 2010
Section 1 – Title
This Act shall be known as “Expanded Senior Citizens
Act of 2010.”
Section 2
Section 1 of Republic Act No. 7432, as amended by
Republic Act No. 9257, otherwise known as the
“Expanded Senior Citizens Act of 2003”, is hereby
further amended to read as follows:
Section 1 of RA 7432
As provided in the Constitution of the Republic of the
Philippines, it is 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, it is
further declared that the State shall provide social
justice in all phases of national development and that
the State values the dignity of every human person and
guarantees full respect for human rights.
Article XIII, Section 11 of Constitution
Article XIII, Section 11 of the Constitution provides that
the State shall adopt an integrated and
comprehensive approach to health development
which shall endeavor to make essential goods, health,
and other social services available to all the people at
affordable cost. There 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.
Section 2
Consistent with these constitutional principles, this Act
shall serve the following objectives:
(a) To recognize the rights of senior citizens to take their
proper place in society and make it a concern of the
family, community, and government;
(b) To give full support to the improvement of the total
well-being of the elderly and their full participation in
society, considering that senior citizens are integral part
of Philippine society;
(c) To motivate and encourage the senior citizens to
contribute to nation building;
(d) To encourage their families and the communities
they live with to reaffirm the valued Filipino tradition of
caring for the senior citizens;
(e) To provide a comprehensive health care and
financial assistance from his/her relatives to support
their capacity to attain a more meaningful and
productive ageing; and
(f) To recognize the important role of the private sector
in the improvement of the welfare of senior citizens and
to actively seek their partnership.
In accordance with these objectives, this Act shall:
(1) establish mechanisms whereby the contributions of
the senior citizens are maximized;
(2) adopt measures whereby our senior citizens are
assisted and appreciated by the community as a
whole;
(3) establish a program beneficial to the senior citizens,
their families and the rest of the community they serve:
and
(4) establish community-based health and
rehabilitation programs for senior citizens in every
political unit of society.
Section 3 – Definition of Terms
(a) Senior citizen or elderly refers to any resident citizen
of the Philippines at least sixty (60) years old;
(b) Geriatrics refer to the branch of medical science
devoted to the study of the biological and physical
changes and the diseases of old age;
(c) Lodging establishment refers to a building, edifice,
structure, apartment or house including tourist inn,
apartelle, motorist hotel, and pension house engaged
in catering, leasing or providing facilities to transients,
tourists or travelers;
(d) Medical Services refer to hospital services,
professional services of physicians and other health
care professionals and diagnostics and laboratory tests
that the necessary for the diagnosis or treatment of an
illness or injury;
(e) Dental services to oral examination, cleaning,
permanent and
temporary filling, extractions and gum treatments,
restoration, replacement or repositioning of teeth, or
alteration of the alveolar or periodontium process of
the maxilla and the mandible that are necessary for the
diagnosis or treatment of an illness or injury;
(f) Nearest surviving relative refers to the legal spouse
who survives the deceased senior citizen: Provided,
That where no spouse survives the decedent, this shall
be limited to relatives in the following order of degree
of kinship: children, parents, siblings, grandparents,
grandchildren, uncles and aunts;
(g) Home health care service refers to health or
supportive care provided to the senior citizen patient at
home by licensed health care professionals to include,
but not limited to, physicians, nurses, midwives, physical
therapist and caregivers; and
(h) Indigent senior citizen, refers to any elderly who is
frail, sickly or with disability, and without pension or
permanent source of income, compensation or
his/her basic needs, as determined by the Department
of Social Welfare and development (DSWD) in
consultation with the National Coordinating and
Monitoring Board.
Section 4 – Privileges for the Senior Citizens
Section 4 of Republic Act No. 7432, as amended by
Republic Act No. 9257, otherwise known as the
"Expanded Senior Citizens Act of 2003", is hereby further
amended to read as follows:
The senior citizens shall be entitled to the following:
(a) the grant of twenty percent (20%) discount and
exemption from the value-added tax (VAT), if
applicable, on the sale of the following goods and
services from all establishments, for the exclusive use
and enjoyment or availment of the senior citizen
(1) on the purchase of medicines, including the
purchase of influenza and pneumococcal vaccines,
and such other essential medical supplies, accessories
and equipment to be determined by the Department
of Health (DOH).
The DOH shall establish guidelines and mechanism of
compulsory rebates in the sharing of burden of
discounts among retailers, manufacturers and
distributors, taking into consideration their respective
margins;
(2) on the professional fees of attending physician/s in
all private hospitals, medical facilities, outpatient clinics
and home health care services;
(3) on the professional fees of licensed professional
health providing home health care services as
endorsed by private hospitals or employed through
home health care employment agencies;
(4) on medical and dental services, diagnostic and
laboratory fees in all private hospitals, medical facilities,
outpatient clinics, and home health care services, in
accordance with the rules and regulations to be issued
by the DOH, in coordination with the Philippine Health
Insurance Corporation (PhilHealth);
(5) in actual fare for land transportation travel in public
utility buses (PUBs), public utility jeepneys (PUJs), taxis,
Asian utility vehicles (AUVs), shuttle services and public
railways, including Light Rail Transit (LRT), Mass Rail
Transit (MRT), and Philippine National Railways (PNR);
(6) in actual transportation fare for domestic air
transport services and sea shipping vessels and the like,
based on the actual fare and advanced booking;
(7) on the utilization of services in hotels and similar
lodging establishments, restaurants and recreation
centers;
(8) on admission fees charged by theaters, cinema
houses and concert halls, circuses, leisure and
amusement; and
(9) on funeral and burial services for the death of senior
citizens;
(b) exemption from the payment of individual income
taxes of senior citizens who are considered to be
minimum wage earners in accordance with Republic
Act No. 9504;
(c) the grant of a minimum of five percent (5%)
discount relative to the monthly utilization of water and
electricity supplied by the public utilities: Provided, That
the individual meters for the foregoing utilities are
registered in the name of the senior citizen residing
therein: Provided, further, That the monthly
consumption does not exceed one hundred kilowatt
hours (100 kWh) of electricity and thirty cubic meters (30
m3) of water: Provided, furthermore, That the privilege is
granted per household regardless of the number of
senior citizens residing therein;
(d) exemption from training fees for socioeconomic
programs;
(e) free medical and dental services, diagnostic and
laboratory fees such as, but not limited to, x-rays,
computerized tomography scans and blood tests, in all
government facilities, subject to the guidelines to be
issued by the DOH in coordination with the PhilHealth;
(f) the DOH shall administer free vaccination against
the influenza virus and pneumococcal disease for
indigent senior citizen patients;
(g) educational assistance to senior citizens to pursue
post secondary, tertiary, post tertiary, vocational and
technical education, as well as short-term courses for
retooling in both public and private schools through
provision of scholarships, grants, financial aids, subsides
and other incentives to qualified senior citizens,
including support for books, learning 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;
(i) retirement benefits of retirees from both the
government and the private sector shall be regularly
reviewed to ensure their continuing responsiveness and
sustainability, and to the extent practicable and
feasible, shall be upgraded to be at par with the
current scale enjoyed by those in actual service;
(j) to the extent possible, the government may grant
special discounts in special programs for senior citizens
on purchase of basic commodities, subject to the
guidelines to be issued for the purpose by the
Department of Trade and Industry (DTI) and the
Department of Agriculture (DA);
(k) provision of express lanes for senior citizens in all
commercial and government establishments; in the
absence thereof, priority shall be given to them; and
(l) death benefit assistance of a minimum of Two
thousand pesos (Php2, 000.00) shall be given to the
nearest surviving relative of a deceased senior citizen
which amount shall be subject to adjustments due to
inflation in accordance with the guidelines to be issued
by the DSWD.
In the availment of the privileges mentioned above, the
senior citizen, or his/her duly authorized representative,
may submit as proof of his/her entitled thereto any of
the following:
(1) an identification card issued by the Office of the
Senior Citizen Affairs (OSCA) of the place where the
senior citizen resides: Provided, That the identification
card issued by the particular OSCA shall be honored
nationwide;
(2) the passport of the senior citizen concerned; and
(3) other documents that establish that the senior
citizen is a citizen of the Republic and is at least sixty (60)
years of age as further provided in the implementing
rules and regulations.
In the purchase of goods and services which are on
promotional discount, the senior citizen can avail of the
promotional discount or the discount provided herein,
whichever is higher.
The establishment may claim the discounts granted
under subsections (a) and (c) of this section as tax
deduction based on the cost of the goods sold or
services rendered: Provided, That the cost of the
discount shall be allowed as deduction from gross
income for the same taxable year that the discount is
granted: Provided, further, That the total amount of the
claimed tax deduction net of VAT, if applicable, shall
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.
Section 5 – Government Assistance
(a) Employment
(b) Education
(c) Health
(d) Social Services
(e) Housing
(f) Access to Public transport
(g) Incentive for foster Care
(h) Additional Government Assistance
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 laws, rules and regulations.
Private entities that will employ senior citizens as
employees, upon the effectivity of this Act, shall be
entitled to an additional deduction from their gross
income, equivalent to fifteen percent (15%) of the total
amount paid as salaries and wages to senior citizens,
subject to the provision of Section 34 of the NIRC, as
amended: Provided, however, That such employment
shall continue for a period of at least six (6) months:
Provided, further, That the annual income of the senior
citizen does not exceed the latest poverty threshold as
determined by the National Statistical Coordination
Board (NSCB) of the National Economic and
Development Authority (NEDA) for that year.
The Department of Labor and Employment (DOLE), in
coordination with other government agencies such as,
but not limited to, the Technology and Livelihood
Resource Center (TLRC) and the Department of Trade
and Industry (DTI), shall assess, design, and implement
training programs that will provide skills and welfare or
livelihood support for senior citizens.
Education
The Department of Education (DepED), the Technical
Education and Skills Development Authority (TESDA)
and the Commission on Higher Education (CHED), in
consultation with nongovernmental organizations
(NGOs) and people's organizations (POs) for senior
citizens, shall institute programs that will ensure access
to formal and nonformal education.
Health
 The DOH, in coordination with local
government units (LGUs), NGOs and POs for
senior citizens, shall institute a national health
program and shall provide an integrated
health service for senior citizens. It shall train
community-based health workers among
senior citizens and health personnel to
specialize in the geriatric care and health
problems of senior citizens.
 The national health program for senior citizens
shall, among others, be harmonized with the
National Prevention of Blindness Program of
the DOH.
 Throughout the country, there shall be
established a "senior citizens' ward" in every
government hospital. This geriatric ward shall
be for the exclusive use of senior citizens who
are in need of hospital confinement by reason
of their health conditions. However, when
urgency of public necessity purposes so
require, such geriatric ward may be used for
emergency purposes, after which, such "senior
citizens' ward" shall be reverted to its nature as
geriatric ward.
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 residential care/group
homes that are government-run or non-stock, non-profit
domestic corporation organized and operated
primarily for the purpose of promoting the well-being of
abandoned, neglected, unattached, or homeless
senior citizens, subject to the guidelines formulated by
the DSWD.
(1) "self and social enhancement services" which
provide senior citizens opportunities for socializing,
organizing, creative expression, and self-improvement;
(2) "after care and follow-up services" for citizens who
are discharged from the homes or institutions for the
aged, especially those who have problems of
reintegration with family and community, wherein both
the senior citizens and their families are provided with
counseling;
(3) "neighborhood support services" wherein the
community or family members provide caregiving
services to their frail, sick, or bedridden senior citizens;
and
(4) "substitute family care " in the form of residential
care or group homes for the abandoned, neglected,
unattached or homeless senior citizens and those
incapable of self-care.
Housing
The national government shall include in its national
shelter program the special housing needs of senior
citizens, such as establishment of housing units for the
elderly.
Access to Public Transport
The Department of Transportation and
Communications (DOTC) shall develop a program to
assist senior citizens to fully gain access to public
transport facilities.
Incentive for Foster Care
The government shall provide incentives to individuals
or nongovernmental institution caring for or establishing
homes, residential communities or retirement villages
solely for, senior citizens, as follows:
(1) realty tax holiday for the first five (5) years starting
from the first 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 village.
Additional Government Assistance
1) 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.
(2) Mandatory PhilHealth Coverage - All indigent senior
citizens shall be covered by the national health
insurance program of PhilHealth. The LGUs where the
indigent senior citizens resides shall allocate the
necessary funds to ensure the enrollment of their
indigent senior citizens in accordance with the
pertinent laws and regulations.
(3) Social Safety Nets - Social safety assistance
intended to cushion the effects of economics shocks,
disasters and calamities shall be available for senior
citizens. The social safety assistance which shall include,
but not limited to, food, medicines, and financial
assistance for domicile repair, shall be sourced from the
disaster/calamity funds of LGUs where the senior
citizens reside, subject to the guidelines to be issued by
the DSWD.
Section 6 – The Office for Senior Citizen Affairs (OSCA)
There shall be established in all cities and municipalities
an OSCA to be headed by a senior citizen who shall be
appointed by the mayor for a term of three (3) years
without reappointment but without prejudice to an
extension if exigency so requires. Said appointee shall
be chosen from a list of three (3) nominees as
recommended by a general assembly of senior citizens
organizations in the city or municipality.
Functions of OSCA
(a) To plan, implement and monitor yearly work
programs in pursuance of the objectives of this Act;
(b) To draw up a list of available and required services
which can be provided by the senior citizens;
(c) To maintain and regularly update on a quarterly
basis the list of senior citizens and to issue national
individual identification cards, free of charge, which
shall be valid anywhere in the country;
(d) To serve as a general information and liaison center
for senior citizens;
(e) To monitor compliance of the provisions of this Act
particularly the grant of special discounts and privileges
to senior citizens;
(f) To report to the mayor, any individual,
establishments, business entity, institutions or agency
found violating any provision of this Act; and
(g) To assist the senior citizens in filing complaints or
charges against any individual, establishments, business
entity, institution, or agency refusing to comply with the
privileges under this Act before the Department of
Justice (DOJ), the Provincial Prosecutor's Office, the
regional or the municipal trial court, the municipal trial
court in cities, or the municipal circuit trial court.
Section 7 - Penalties
Any person who refuses to honor the senior citizen card
issued by this the government or violates any provision
of this Act shall suffer the following penalties:
(a) For the first violation, imprisonment of not less than
two (2) years but not more than six (6) years and a fine
of not less than Fifty thousand pesos (Php50,000.00) but
not exceeding One hundred thousand pesos
(Php100,000.00);
(b) For any subsequent violation, imprisonment of not
less than two (2) years but not more than six (6) years
and a fine of not less than One Hundred thousand
pesos (Php100,000.00) but not exceeding Two hundred
thousand pesos (Php200,000.00); and
(c) Any person who abuses the privileges granted
herein shall be punished with imprisonment of not less
than six (6) months and a fine of not less than fifty
thousand pesos (Php50,000.00) but not more than One
hundred thousand pesos (Php100,000.00).
 If the offender is a corporation, partnership,
organization or any similar entity, the officials
thereof directly involved such as the president,
general manager, managing partner, or such
other officer charged with the management
of the business affairs shall be liable therefor.
 If the offender is an alien or a foreigner,
he/she shall be deported immediately after
service of sentence.
 Upon filing of an appropriate complaint, and
after due notice and hearing, the proper
authorities may also cause the cancellation or
revocation of the business permit, permit to
operate, franchise and other similar privileges
granted to any person, establishment or
business entity that fails to abide by the
provisions of this Act.
Section 8 – Monitoring and Coordination Mechanism
A National Coordinating and Monitoring Board shall be
established which shall be composed of the following:
(a) Chairperson - the Secretary of the DSWD or an
authorized representative;
(b) Vice Chairperson - the Secretary of the Department
of the Interior and Local Government (DILG) or an
authorized representative; and
(c) Members:
(1) the Secretary of the DOJ or an authorized
representative;
(2) the Secretary of the DOH or an authorized
representative;
(3) the Secretary of the DTI or an authorized
representative; and
(4) representatives from five (5) NGOs for senior citizens
which are duly accredited by the DSWD and have
service primarily for senior citizens. Representatives of
NGOs shall serve a period of tree (3) years.
The Board may call on other government agencies,
NGOs and Pos to serve as resource persons as the need
arises. Resource person have no right to vote in the
National Coordinating and Monitoring Board.
Section 9 – Implementing Rules and Regulations
 Within sixty (60) days from the effectivity of this
Act, the Secretary of the DSWD shall formulate
 and adopt amendments to the existing rules
and regulations implementing Republic Act
No. 7432, as amended by Republic Act No.
9257, to carry out the objectives of this Act, in
consultation with the Department of Finance,
the Department of Tourism, the Housing and
Urban Development Coordinating Council
(HUDCC), the DOLE, the DOJ, the DILG, the
DTI, the DOH, the DOTC, the NEDA, the DepED,
the TESDA, the CHED, and five (5) NGOs or
POs for the senior citizens duly accredited by
the DSWD. The guidelines pursuant to Section
4(a)(i) shall be established by the DOH within
sixty (60) days upon the effectivity of this Act.
Section 10 - Appropriations
The Necessary appropriations for the operation and
maintenance of the OSCA shall be appropriated and
approved by the LGUs concerned. For national
government agencies, the requirements to implement
the provisions of this Act shall be included in their
respective budgets: Provided, That the funds to be
used for the national health program and for the
vaccination of senior citizens in the first year of the DOH
and thereafter, as a line item under the under the DOH
budget in the subsequent General Appropriations Act
(GAA): Provided, further, That the monthly social
pension for indigent senior citizens in the first year of
implementation shall be added to the regular
appropriations of the DSWD budget in the subsequent
GAA.
Section 11 – Repealing Clause
All law, executive orders, rules and regulations or any
part hereof inconsistent herewith are deemed
repealed or modified accordingly.
Section 12 – Separability Clause
If any part or provision of this Act shall be declared
unconstitutional and invalid, such 18 declaration shall
not invalidate other parts thereof which shall remain in
full force and effect.
Section 13 - Effectivity
This Act shall take effect fifteen (15) days its complete
publication in the Official Gazette or in at least two (2)
newspapers of general circulation, whichever comes
earlier.
RA 9442
An Act Amending Republic Act No. 7277, Otherwise
Known As The “Magna Carta For Disabled Persons, And
For Other Purposes”
Definition of Terms (Sec. 4 of RA 7277
(a). Disabled Persons are those suffering from restriction
of different abilities, as a result of a mental, physical or
sensory impairment, to perform an activity in the
manner or within the range considered normal for a
human being;
(b). Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical structure of
function;
(c). Disability shall mean (1) a physical or mental
impairment that substantially limits one or more
psychological, physiological or anatomical function of
an individual or activities of such individual; (2) a record
of such an impairment; or (3) being regarded as having
such an impairment;
(d). Handicap refers to a disadvantage for a given
individual resulting from an impairment or a disability,
that limits or prevents the functions or activity, that is
considered normal given the age and sex of the
individual;
(e). Rehabilitation is an integrated approach to
physical, social, cultural, spiritual, educational and
vocational measures that create conditions for the
individual to attain the highest possible level of
functional ability;
(f). Social Barriers refer to the characteristics of
institutions, whether legal, economic, cultural,
recreational or other, any human group, community, or
society which limit the fullest possible participation of
disabled persons in the life of the group. Social barriers
include negative attitudes which tends to single out
and exclude disabled persons and which distort roles
and interpersonal relationship;
(g). Auxiliary Aids and Services include:
1) qualified interpreters or other effective methods of
delivering materials to individuals with hearing
impairments;
2) qualified readers, taped tests, or other effective
methods of delivering materials to individuals with visual
impairments;
3) acquisition or modification of equipment or devices;
and
4) other similar services and actions or all types of aids
and services that facilitate the learning process of
people with mental disability;
(h). Reasonable Accommodation includes (1)
improvement of existing facilities used by employees in
order to render these readily accessible to and usable
by disabled persons; and (2) modification of work
schedules, reassignment to a vacant position,
acquisition or modification of equipment or devices,
appropriate adjustments or modifications of
examinations, training materials or company policies,
rules and regulations, the provisions of auxiliary aids and
services, and other similar accommodations for
disabled persons;
(i). Sheltered Employment refers to the provision of
productive work for disabled persons through workshop
providing special facilities, income producing projects
or homework schemes with a view to given them the
opportunity to earn a living thus enabling them to
acquire a working capacity required in open industry.
(j). Auxiliary Social Services are the supportive activities
in the delivery of social services to the marginalized
sectors of society;
(k). Marginalized Disabled Persons refer to disabled
persons who lack access to rehabilitative services and
opportunities to be able to participate fully in
socioeconomic activities and who have no means of
livelihood or whose incomes fall below poverty
threshold;
(l). Qualified Individual with a Disability shall mean an
individual with a disability who, with or without
reasonable accommodations, can perform the
essential functions of the employment position that
such individual holds or desires. However, consideration
shall be given to the employer’s judgement as to what
functions of a job are essential, and if an employer has
prepared a written description before advertising or
interviewing applicants for the job, this description shall
be considered evidence of the essential functions of
the job;
(m). Readily Achievable means a goal can be easily
attained and carried out without much difficulty or
expense. In determining whether an action is readily
achievable, factors to be considered include
1) the nature and cost of the action;
2) the overall financial resources of the facility or
facilities involved in the action; the number of persons
employed at such facility; the effect on expenses and
resources, or the impact otherwise of such action upon
the operation of the facility;
3) the overall financial resources of the covered entity
with respect to the number of its employees; the
number, type and location of its facilities; and
4) the type of operation or operations of the covered
entity, including the composition, structure and
functions of the work force of such entity; the
geographic separateness, administrative or fiscal
relationship of the facilities in question to the covered
entity;
(n). Public Transportation means transportation by air,
land and sea that provides the public with general or
special service on a regular and continuing basis;
(o). Covered entity means employer, employment
agency, labor organization or joint labor-management
committee; and
(p). Commerce shall be taken to mean a s travel, trade,
traffic, commerce, transportation, or communication
among the provinces or between any foreign country
or any territory or possession and any province.
Section 1
a new chapter, to be denominated as “Chapter 8.
Other privileges and Incentives” is hereby added to Title
Two of Republic Act No. 7277, otherwise known as the
“Magna Carta for Disabled Persons”, with new Sections
32 and 33, to read as follows:
Chapter 8 – Other Privileges and Incentives
SEC. 32. Persons with disability shall be entitled to the
following:
(a) At least twenty percent (20%) discount from all
establishments relative to the utilization of all services in
hotels and similar lodging establishments; restaurants
and recreation centers for the exclusive use or
enjoyment of persons with disability;
(b) A minimum of twenty percent (20%) discount on
admission fees charged by theaters, cinema houses,
concert halls, circuses, carnivals and other similar
places of culture, leisure and amusement for the
exclusive use of enjoyment of persons with disability;
(c) At least twenty percent (20%) discount for the
purchase of medicines in all drugstores for the exclusive
use or enjoyment of persons with disability;
(d) At least twenty percent (20%) discount on medical
and dental services including diagnostic and
laboratory fees such as, but not limited to, x-rays,
computerized tomography scans and blood tests, in all
government facilities, subject to guidelines to be issued
by the Department of Health (DOH), in coordination
with the Philippine Health Insurance Corporation
(PHILHEALTH);
(e) At least twenty percent (20%) discount on medical
and dental services including diagnostic and
laboratory fees, and professional fees of attending
doctors in all private hospitals and medical facilities, in
accordance with the rules and regulations to be issued
by the DOH, in coordination with the PHILHEALTH;
(f) At least twenty percent (20%) discount on fare for
domestic air and sea travel for the exclusive use or
enjoyment of persons with disability;
(g) At least twenty percent (20%) discount in public
railways, skyways and bus fare for the exclusive use and
enjoyment of person with disability;
(h) Educational assistance to persons with disability, for
them to pursue primary, secondary, tertiary, post
tertiary, as well as vocational or technical education, in
both public and private schools, through the provision
of scholarships, grants, financial aids, subsidies and
other incentives to qualified persons with disability,
including support for books, learning material, and
uniform allowance to the extent feasible: Provided,
That persons with disability shall meet minimum
admission requirements;
(i) To the extent practicable and feasible, the
continuance of the same benefits and privileges given
by the Government Service Insurance System (GSIS),
Social Security System (SSS), and PAG-IBIG, as the case
may be, as are enjoyed by those in actual service;
(j) To the extent possible, the government may grant
special discounts in special programs for persons with
disability on purchase of basic commodities, subject to
guidelines to be issued for the purpose by the
Department of Trade and Industry (DTI) and the
Department of Agricultural (DA); and
(k) Provision of express lanes for persons with disability in
all commercial and government establishments; in the
absence thereof, priority shall be given to them.
The abovementioned privileges are available only to
persons with disability who are Filipino citizens upon
submission of any of the following as proof of his/her
entitlement thereto:
(I) An identification card issued by the city or municipal
mayor or the barangay captain of the place where the
persons with disability resides;
(II) The passport of the persons with disability concerned;
or
(III) Transportation discount fare Identification Card (ID)
issued by the National Council for the Welfare of
Disabled Persons (NCWDP).
 The privileges may not be claimed if the
persons with disability claims a higher discount
sa may be granted by the commercial
establishment and/or under other existing laws
or in combination with other discount
programs/s.
 The establishments may claim the discounts
granted in sub-sections (a), (b), (c), (f) and (g)
as tax deductions based on the net cost of
the goods sold or services rendered: Provided,
further, That the total amount of the claimed
tax deduction net of value-added tax if
applicable, shall 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 (NIRC), as amended.
Chapter 8, Section 33 - Incentives
Those caring for and living with a person with disability
shall be granted the following incentives:
(a) Persons with disability shall be treated as
dependents under the Section 35 (A) of the National
Internal Revenue Code, as amended and as such,
individual taxpayers caring for them shall be accorded
the privileges granted by the code insofar as having
dependents under the same section are concerned;
and
(b) Individuals or nongovernmental institutions
establishing homes, residential communities or
retirement villages solely to suit the needs and
requirements of persons with disability shall be
accorded the following:
(i) Realty tax holiday for the first five years of operation;
and
(ii) Priority in the building and/or maintenance of
provincial or municipal roads leading to the aforesaid
home, residential community or retirement village.
Section 2
Republic Act No. 7277 is hereby amended inserting a
new title, chapter and section after Section 38 be
denominated as title 4, chapters 1 and 2 and Sections
40, 41 and 42 to read as follows:
Title Four
Prohibitions on Verbal, Non-Verbal Ridicule and
Vilification Against Persons with Disability
Chapter 1
Deliverance from Public Ridicule
Section 39
For purposes of this chapter, public ridicule shall be
defined as an act of making fun or contemptuous
imitating or making mockery of persons with disability
whether in writing, or in words, or in action due to their
impairment/s.
Section 40
No individual, group or community shall execute any of
these acts of ridicule against persons with disability in
any time and place which could intimidate or result in
loss of self-esteem of the latter.
Chapter 2
Deliverance from Vililfication
Section 41
For purposes of this Chapter, vilification shall be defined
as:
 The utterance of slanderous and abusive
statements against a person with disability;
and/or
 An activity in public which incites hatred
towards, serious contempt for, or severe
ridicule of persons with disability.
Section 42
Any individual, group or community is hereby
prohibited from vilifying any person with disability which
could result into loss of self-esteem of the latter.
Section 3 – Amendment of Section 46 of RA 7277 (Penal
Clause)
Any person who violates any provision of this Act shall
suffer the following penalties:
(1) For the first violation, a fine of not less than Fifty
Thousand pesos (P50,000.00) but not exceeding One
hundred thousand pesos (P100,000.00) or imprisonment
of not less than six months but not more than two years,
or both at the discretion of the court; and
(2) For any subsequent violation, a fine of not less than
One hundred thousand pesos (P100,000.00) but not
exceeding Two hundred thousand pesos (P200,000.00)
or imprisonment for not less than two years but not
more than six years, or both at the discretion of the
court.
(b) Any person who abuses the privileges granted
herein shall be punished with imprisonment of not less
than six months or a fine of not less than Five thousand
pesos (P5,000.00), but not more than Fifty thousand
pesos (P50,000.00), or both, at the discretion of the
court.
(c) If the violator is a corporation, organization or any
similar entity, the officials thereof directly involved shall
be liable, therefore.
(d) If the violator is an alien or a foreigner, he shall be
deported immediately after service of sentence
without further deportation proceedings.
Section 4
The title of Republic Act No. 7277 is hereby amended to
read as the “Magna Carta for Persons with Disability”,
and all references on the said law to “Disabled
persons” shall likewise be amended to read as “persons
with disability.
Section 5
The Department of Social Welfare and Development,
the National Council for the Welfare of Disabled
Persons, and the Bureau of Internal Revenue, in
consultation with the concerned Senate and House
committees and other agencies, organizations,
establishments shall formulate implementing rules and
regulations pertinent to the provision of this Act within
six months after the effectivity of this Act.
Section 6
This Act shall take effect fifteen (15) days after its
publication in any two newspapers of general
circulation.
Income Tax for Senior Citizens and PWDs
Income Tax of Senior Citizens and PWDs
 Generally, qualified Senior Citizens and PWDs
deriving income during the taxable year,
whether from compensation or otherwise, are
required to file their income tax returns and
pay the tax as they file the return.
 If the returnable income of a Senior Citizen or
PWD is in the nature of compensation income
but he qualifies as a minimum wage earner
under RA No. 9504, he shall be exempt from
income tax on the said compensation income
subject to the rules provided under RR 10-2008
applicable to minimum wage earners.
 If the aggregate amount of gross income
earned by the Senior Citizen or PWD during
the taxable year does not exceed P250,000 as
provided under RA No. 10963 (TRAIN Law),
s/he shall be exempt from income tax and
shall not be required to file income tax return.
Hence, a senior citizen or PWD, like an
ordinary taxpayer, can still be liable for other
taxes such as:
1. The 20% final withholding tax on interest
income from any currency bank deposit.
2. The 15% final withholding tax on interest
income from a depositary bank under the
expanded foreign currency deposit system
(Sec. 24 (B)(1), NIRC, as amended).
3. Pre-termination of long-term deposit or
investment under Section 24 (B)(1) of the Tax
Code:
a. Four years to less than five years – 5%
b. Three years to less than four years – 12%
c. Less than three years – 20%
4. The 10% final withholding tax:
 On cash and/or property dividends actually or
constructively received for a domestic
corporation or from a joint stock company,
insurance or mutual fund company and a
regional operating headquarters of a
multinational company.
 On the share of an individual in the
distributable net income after tax of a
partnership (except a general professional
partnership) of which he is a partner.
 On the share of an individual in the net
income after tax of an association, a joint
account, or a joint or consortium taxable as a
corporation of which he is a member or a co-
venturer (Sec. 24 (B)(2), Tax Code).
5. The Capital gains tax from sales of shares of
stock not traded in the stock exchange (Sec
24©, Tax Code)
6. The 6% final withholding tax on presumed
capital gains from sale of real property,
classified as capital asset, except capital
gains presumed to have been realized from
the sale or disposition of principal residence
(Sec. 24(D), Tax Code)
7. Other taxes
Other Taxes
 VAT or OPT – if s/he is self-employed or
engaged in business or practice of profession,
and his gross annual 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) of the Tax Code, he shall be subject to
VAT. Otherwise, s/he shall be subject to the
Percentage Tax under Section 116 of the Tax
Code, as amended
 Donor’s tax on all donations made by the
Senior Citizen or PWD 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 or PWD during any
calendar year, unless exempt under a specific
provision of law.
 Excise Tax on certain goods
 Documentary Stamp Tax
Benefits for Senior Citizen and PWDs
 VAT exemption on certain purchases
 20% discount on certain purchases
 5% discount on purchase of primary and basic
commodities
Additional Compensation Expense for Private Entities
Private entities that will employ senior citizens as
employees shall be entitled to an additional deduction
from their gross income, equivalent to 15% of the total
amount paid as salaries and wages to senior citizens,
subject to the following conditions:
 Employment shall continue for a period of at
least 6 months.
 That the annual income of the senior citizen
does not exceed the latest poverty threshold
as determined by the National Statistical
Coordination Board (NSCR) of the National
Economic and Development Authority (NEDA)
for that year.
Private entities that employ disabled persons who meet
the required skills or qualifications, either as regular
employee, apprentice or learner, shall be entitled to an
additional deduction from their gross income
equivalent to 25% of the total amount paid as salaries
and wages to disabled persons.
Treatment of Input VAT Attributable to Sale to Senior
Citizens and PWDs
The input tax attributable to the vat exempt sale is
considered as cost or an expense account by business
establishments and shall not be allowed as input tax
credit.