RMC No. 25-2023: Circularizes Republic Act No. 11314, titled “An Act Institutionalizing the Grant of Student Fare Discount Privileges on Public Transportation and for Other Purposes”

Summary

RMC No. 25-2023 circularizes Republic Act No. 11314, which institutionalizes student fare discount privileges on public transportation.

Key points

1. Coverage. The Act covers public transportation utilities such as buses, jeepneys, taxis and similar vehicles-for-hire, tricycles, passenger trains, aircraft and marine vessels. It does not cover school service, shuttle service, tourist service and similar services under contract or charter with a valid LTFRB franchise or permit.
2. Discount rate. Students get a twenty percent (20%) discount on domestic regular fares, upon personal presentation of a school ID or current validated enrollment form with a government-issued ID. For air transport, the discount applies only to the base fare before taxes and ancillary service costs.
3. Availability and limits. The discount is available throughout enrollment, including weekends and holidays. Where a promotional fare is offered, the student may choose it or the regular fare less the discount. It cannot be claimed together with a higher discount or other discount programs.
4. Tax deduction for operators. Operators may deduct the cost of the discount from gross income in the same taxable year it is granted. The deduction, net of VAT if applicable, is included in gross sales receipts for tax purposes and needs proper documentation.

Who is affected

• Students enrolled and using public transportation
• Public transportation utility operators

Deadlines and effectivity

• Discount available during the entire period of enrollment
• Deduction taken in the same taxable year the discount is granted

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.