NO less than our Constitution recognizes the importance of protecting the rights of the senior citizens. As mandated under the Constitution, the State shall adopt an integrated and comprehensive approach to national development which shall endeavor to make essential goods, health and other social services available to all people at affordable cost which prioritizes, among others, the needs of the elderly.
In compliance this mandate, Republic Act (RA) 7432, as amended by RA 9994, was enacted to provide certain tax privileges to senior citizens, such as exemption from income tax on compensation, provided he qualifies as a minimum-wage earner or if the aggregate amount of gross income earned by the senior citizen during the taxable year does not exceed the amount of personal exemptions.
They are also given a 5-percent discount from their monthly consumption of electricity and water.
But the most common and most enjoyed privilege is the 20-percent discount on purchases of certain goods and services and the exemption from the 12-percent value-added tax on these purchases, except on electricity and water.
These laws, RAs 7432 and 9994, awoke the consciousness of the government, especially the local government units, on their duty to provide assistance and enjoyment for the senior citizens.
Suddenly, you would see priority lanes for senior citizens in government service centers and grocery stores, parking lanes devoted to senior citizens and the like. We hear of free movies for senior citizens and in one locality, we hear of cakes being given out on their birthdays.
Availing themselves these privileges, however, was a nightmare for the tax administration. There were complaints of abuses, especially in the purchases of food and medicine. Thus, in 2010, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 07-10 prescribing the guidelines for the availment of these privileges. Under this regulation, a senior citizen may avail herself of the privileges only if she is able to present her senior citizens’ identification card issued by the Office of the Senior Citizens’ Affairs (Osca) in the city or municipality where the elderly resides. Absent this senior citizen ID the senior citizen cannot avail herself of the privileges under the law. No other identification cards were accepted as substitute to prove that she is a resident of the Philippines and that she is 60 years old or above.
Recently, with the issuance of RR 11-2015 by the BIR, the availment of the privileges is not anymore limited to the presentation of the senior citizens ID issued by Osca.
RR 11-2015 expanded the definition of “identification document” to include the following:
- senior citizen ID issued by the OSCA,
- Philippine passport,
- Government-issued IDs such as Digitized Social Security Services ID, Government Service Insurance System ID, Professional Regulation Commission ID, IBP ID, Unified Multi-Purpose ID and Driver’s License. All these government IDs require the submission of birth certificate prior to issuance. Hence, it is a reliable identification for purposes of availing the privileges.
By expanding the identification cards allowed to show entitlement to these privileges, RR 11-2015 is just in keeping with the spirit of the law. Give the senior citizens what is due them without so much restrictions tied to the presentation of a single document. With the issuance of this regulation, senior citizens need not worry anymore of leaving behind their Osca ID since there are alternative IDs that are equally acceptable in order that she may avail herself of the privileges granted to her under the law.
Indeed, life begins at 60. It is something to look forward to and start enjoying the benefits of working so hard and paying so much taxes to the government during your prime years.
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The author is a junior associate of Du-Baladad and Associates Law Offices (BDB Law), a member-firm of World Tax Services Alliance.
The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at ayesha.matanog@bdblaw.com.ph or call 403-2001 local 170.
1 comment
So with that being said and done,how does a business protect itself from abusive seniors ? With only the OSCA card being accepted as ID, a business could file a complaint against said erroring senior with some losing their senior citizen discount because of a record of abuse. Case example,we had a retired lawyer come into our restraunt who was upset that we enforce our senior discount policy,which by the way was tailored after the model of a popular fastfood outlet. This retired lawyer made a huge scene and demanded that he be allowed to share his discounted food with to younger members of his family,even going so far as to call the police. We rush of to OSCA to inform them of the incident and they already knew about this guy and his abuse of the senior discount program.
So now people like the one mentioned have free arm to do as they like,there is no simple recoarse for abused business owners outside of having to now spend money on lawyers to prosecute such people.
This country truly is not business friendly,you leave us to be fed on by the wolves that are among the truly deserving seniors in this country.
So tell us now o wise ones,how do we as business owners protect ourselves from abusers ?