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Senior & PWD Discounts: Tax Guide

1. Senior citizens and persons with disabilities (PWDs) are entitled to a 20% discount on purchases, which are also VAT-exempt. This means the discount amount should be based on the net price without VAT. 2. Bulk orders and items specifically for kids do not qualify for the 20% discount. Basic commodities qualify for a 5% discount but are not VAT-exempt. 3. For sellers, sales to seniors and PWDs are not included in output tax computations and related input taxes cannot be claimed as tax credits. However, the discount amount given can be claimed as an additional deductible expense.

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Chantie Borlongan
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45 views1 page

Senior & PWD Discounts: Tax Guide

1. Senior citizens and persons with disabilities (PWDs) are entitled to a 20% discount on purchases, which are also VAT-exempt. This means the discount amount should be based on the net price without VAT. 2. Bulk orders and items specifically for kids do not qualify for the 20% discount. Basic commodities qualify for a 5% discount but are not VAT-exempt. 3. For sellers, sales to seniors and PWDs are not included in output tax computations and related input taxes cannot be claimed as tax credits. However, the discount amount given can be claimed as an additional deductible expense.

Uploaded by

Chantie Borlongan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SENIOR CITIZEN AND PWD: d.

Input tax that is


attached to the goods
o Subject to 20% discount which is also
or services that the
VAT-Exempt, ibig sabihin hindi sila
PWD and SC purchased
magbabayad ng VAT, so dapat ang basis
or availed.
ng 20% is net of VAT or walang
➢ BULK-ORDER: kahit na si SC or
nakapatong na VAT (usually, ang mga
PWD pa ang nag-avail hindi
list prices inclusive na ng VAT)
subject to 20% discount
➢ So sa perspective ni seller, yung
➢ Pasalubong: Basta exclusive and
sale made niya kay PWD and
personal consumption subject
Senior is walang VAT so sa
to 20%
computation niya ng output tax,
➢ Mga advertised specifically for
hindi kasama yung sales na yun.
kids: hindi subject to 20%
Same application sa input taxes,
discount
yung mga input taxes na
➢ Mga basic and prime
nakakabit sa goods or sevices
commodities: subject to 5%
na pinrovide niya kay SC or
pero hindi sila vat-exempt.
PWD is not included sa pwede
➢ Promotional Discount:
niyang iclaim as tax credit. Ang
pwedeng piliin kung mas
pwede niyang gawin is gawin
mataas pero hindi na siya VAT-
tong ADDTL DEDUCTIBLE
Exempt.
EXPENSE kasama nung
➢ Utilities of SC: 5% discount not
discounts and mga iba pang
exceeding 100kKWH and 30m
additional deductible expense.
➢ Hindi tax credit yung discount
➢ Sa computation ng taxable
given to PWD and SC, THEY ARE
income ni SELLER, to compute
DEDUCTIBLE EXPENSES
yung taxable income:
1. Kasama yung sales to PWD
and SC sa gross sales. Yung
mga regular deductions or
expenses naman ni seller is
yung cost of sales and any
expenses that may relate to
the PWD and SC (e.g.
Salaries).
2. Aside from the regular
expenses, may mga
additional deductions si
seller
a. If employee is PWD:
25% of salaies
b. If employee is SC: 15%
of salaries
c. Improvement sa facility
niya (PWD) : 50%

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