Bureau of Internal Revenue

Du 02:58 PM, Jun 17, 2021

June 16, 2021

Dear Mona,

Thank you for your request dated Jun 17, 2021 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Accessibility (Infrastructure support) for PWDs.

We received your request on Jun 17, 2021 and will respond on or before Jul 08, 2021 09:05:03 AM, in accordance with the Executive Order's implementing rules and regulations.

Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHQsSB0NvbnRlbnQiEEJJUi0yMjU1NjA5NzgyNDgM, for request with ticket number #BIR-225560978248.

Thank you.

Respectfully,

Ana Marie Du
FOI Officer

Revenue District Office 12:47 PM, Jun 23, 2021

June 23, 2021

Mona Visperas
192 Tecson St., Poblacion
San Miguel, Bulacan


This refers to your letter dated June 17, 2021, which was forwarded to our end on the same date.  Per your letter request you were asking for a detailed guide as to how businesses can save on taxes by providing PWD accessibility in their office/ store.

In reply we are attaching a PDF File of Revenue Regulation 05-2017 being the implementing regulation of Republic Act No. 10754 “An Act Expanding the Benefits and Privileges of Persons with Disability (PWD)”.  We would like to direct your attention particularly to section 5 of the above-mentioned regulation.

To further foster inclusivity, private entities that improve or modify their physical facilities to accommodate PWDs are given additional deduction from their net taxable income equivalent to 50 percent of the direct costs of the improvements or modifications of facilities. The provision of special lanes and priority to PWDs are also encouraged in all commercial and government establishments.

Deductions from Gross Income for the covered establishments: Under the rules, establishments granting sales discounts to PWDs for goods and services will be entitled to deduct such discounts from their gross income following certain conditions:

1. The discount on the sales to PWDs may be claimed as deduction from gross income in the taxable year the discount is granted, provided that the name of the qualified PWD and the PWD Identification Card (PWD ID) number are reflected in the required record of sales;

2. Only the portion of the gross sales for the exclusive use and enjoyment of the PWD shall be eligible for the deductible sale discount;

3. The sales amount must still be recorded inclusive of the discount granted. The discount is not claimed as a reduction of sales to arrive at net sales, but as a deduction from gross income as necessary and ordinary expense falling under the category of itemized deductions;

4. For establishments availing of the Optional Standard Deduction (OSD), the discount shall not be accounted as a deductible expense;

5. In the issuance of official receipts or sales invoices, the gross selling price and the sales discount must be separately indicated;

6. Only the actual amount of sales discount granted or sales discount not exceeding 20% of the gross selling price or gross receipts can be deducted from the gross income, net of VAT;

7. The covered establishment shall keep separate and accurate records of sales to qualified PWD for every sales transaction;


Sample computations were also illustrated in the revenue regulation attached.


Respectfully,

ANTONIO J. MANGUBAT
FOI Receiving Officer

Attachments:
 RR No. 5-2017.pdf