RR No. 1-2007: Amends certain provisions of RR No. 4-2006 which implements the tax privileges provisions of R.A. No. 9257, otherwise known as the “Expanded Senior Citizens Act of 2003”

Key points

1. TIN requirement deleted. Section 8(5) of RR No. 4-2006 is amended by deleting the TIN requirement as a condition for establishments to claim sales discounts as deductions from gross income.
2. New Section 10 on VAT. A new Section 10 clarifies the basis of computing Value-Added Tax on sales to senior citizens with sales discounts by the establishments.
3. Renumbering. The original Sections 10 and 11 of RR No. 4-2006 become Sections 11 and 12.
4. No retroactive effect. The Regulations are in no case retroactive. No refund can be claimed for previous transactions that used a different computation basis from the one in Section 10.

Who is affected

• Establishments selling to senior citizens with sales discounts

Deadlines and effectivity

• Issued January 11, 2007