Summary
RMC No. 104-2016 circularizes the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 10524, which expands the positions reserved for Persons with Disability (PWDs) and amends RA No. 7277, the Magna Carta for Persons with Disability.
Key points
- Government agencies. At least one percent (1%) of all regular and non-regular positions must be reserved for PWDs. A fraction in computing the 1% counts as one (1) reserved position. Agencies already employing PWDs at 1% or more are compliant, but may not reduce the number of qualified PWDs they employ.
- Private corporations. Corporations with more than one hundred (100) employees are encouraged to reserve at least 1% of positions for PWDs. A participating employer must post the specific job description in its public job advertisements.
- Fitness and qualifications. The appointing officer or employer first determines a PWD’s fitness using the position’s qualification standards. PWDs in government non-career positions must meet the standards except civil service eligibility, unless special laws such as RA No. 1080 cover the position.
- Additional deduction for salaries. Private entities employing PWDs as regular employees, apprentices or learners get an additional deduction from gross income equal to twenty-five percent (25%) of salaries and wages paid to them. The PWD must be under their employ and accredited with the Department of Labor and Employment and Department of Health as to disability, skills and qualifications.
- Additional deduction for facilities. Private entities that improve or modify their physical facilities to give reasonable accommodation for PWDs get an additional deduction from net income equal to fifty percent (50%) of the direct cost. This does not apply to improvements or modifications required under B.P. Blg. 344.
- BIR enforcement. The BIR shall enforce Section 4 of Rule II in the IRR of RA 7277, which provides these two deductions.
Who is affected
- Government agencies
- Private corporations employing PWDs
- Private entities that modify facilities for PWDs
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.