RR No. 9-2019: Amends Sections 2, 3 and 7 of RR No. 5-2017 relative to the rules and regulations implementing RA No. 10754 entitled “An Act Expanding the Benefits and Privileges of Persons with Disability” relative to the tax privileges of PWD and tax incentives for establishments granting sales discount and prescribing the guidelines for the availment thereof, amending RR No. 1-2009

Summary

RR No. 9-2019 amends Sections 2, 3 and 7 of RR No. 5-2017, which implements RA No. 10754 on the benefits and privileges of Persons with Disability (PWD), on the tax privileges of PWD and incentives for establishments granting sales discounts.

Key points

1. New definitions in Section 2. Basic necessities are goods vital to the needs of consumers for sustenance and existence, such as rice, corn, bread, fish, fresh meat, eggs, potable water, milk, vegetables, fruits, salt, cooking oil and sugar. Prime commodities are essential goods that are not basic necessities, such as flour, processed meat, dairy products, onions and garlic, school supplies, fertilizer and construction materials, and the Regulations list 21 basic necessities and 22 prime commodities with stated exclusions.
2. Five percent special discount. Goods and services not expressly listed in the 20% discount enumeration do not get the 20% discount, even if for the PWD’s exclusive use. Every PWD instead enjoys a special discount of five percent (5%) of the regular retail price on basic necessities and prime commodities, without exemption from the Value-Added Tax (VAT).
3. Weekly purchase limit. The total purchase may not exceed One Thousand Three Hundred Pesos (Php 1,300.00) per calendar week, and an unused amount does not carry over. The amount must be spent on items for the PWD’s personal exclusive consumption and/or enjoyment within the week, and on at least four kinds of items listed as basic necessities and prime commodities.
4. VAT exemption in Section 7.1. Sales of goods and services under Section 3 to PWD are exempt from value-added tax. The exception is the sale of basic necessities and prime commodities enumerated under Sec. 2 (2.8) and (2.9).

Who is affected

• Persons with Disability (PWD)
• Establishments granting sales discounts to PWD

Deadlines and effectivity

• Weekly purchase limit of Php 1,300.00 per calendar week, no carry-over

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