Tax Notes: Amending provisions on tax privileges, incentives to establishments granting sales discounts to PWDs

THE Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 09-2019 on Aug. 27, 2019 to amend RR 05-2017 on the tax privileges to persons with disabilities (PWDs) and tax incentives to establishments granting sales discounts to such PWDs.

Under RR 05-2017, PWDs are exempted from value-added tax (VAT) and are entitled to an additional 20 percent sales discount on the sales amount and net of VAT relative to the purchase of goods and services from hotels, restaurants, theaters, drugstores, medical and dental services, transportation and funeral and burial services.

With the introduction of RR 09-2019, however, a five percent discount, without exemption from VAT, may be claimed by PWDs on basic necessities and prime commodities. The regulations further defined and enlisted the basic necessities and prime commodities subject to the five percent discount, as follows:

The additional incentive to PWDs, however, comes with a limitation. According to the regulations, the total amount of purchase of basic necessities and prime commodities enumerated above shall not exceed P1,300 per calendar week without carryover of the unused amount in the succeeding week.

The purchase must be to the personal exclusive consumption and/or enjoyment of the PWD. Additionally, the goods bought within the calendar week must be at least four items.

Please be guided accordingly.

Source: P&A Grant Thornton

Certified Public Accountants


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