SENIOR CITIZENS AND PERSONS WITH DISABILITIES Flashcards
Who are considered senior citizens?
Those who are residents of the Philippines and who is sixty years old or above. It may also apply to senior citizens with dual citizenship status provided THEY PROVE THEIR FILIPINO CITIZENSHIP AND HAVE AT LEAST 6 MONTHS RESIDENCY IN THE PHILIPPINES.
How are senior citizens subjected to income tax?
Generally, senior citizens are subjected to income tax just like any ordinary individual taxpayer. However, unlike an ordinary individual taxpayer, SENIOR CITIZENS ARE:
- GENERALLY EXEMPT FROM VAT
- ENTITLED TO 20% DISCOUNT ON PURCHASE OF CERTAIN GOODS/SERVICES.
What are the VAT-exempt sales to senior citizens?
The following items sold to senior citizens are VAT-EXEMPT and will entitle the senior citizen to a minimum 20% discount:
a. Medicine and drug purchases
b. Professional fees of attending physicians in all hospitals/medical facilities/clinics/home health services
c. Professional fees of licensed health workers providing home health care services
d. Medical/dental/diagnostic/laboratory fees
e. Actual fare for land transportation travel
f. Actual fare for domestic air transport and sea shipping vessels
g. Utilization of services in hotels/lodging/restaurants/recreation centers
h. Admission fees in cinemas/theaters/concert halls/circuses/carnivals/other places of leisure and amusement
i. Funeral and burial services of senior citizens.
How is the billing of sales for senior citizens computed?
Total bill inclusive of VAT XXX
Less: VAT (XXX)
Total bill exclusive of VAT XXX
Less 20% discount (XXX)
Total Amount due XXX
For sales involving non-senior citizens, try to isolate the senior citizen’s portion.
Explain the grant of 5% special discounts for senior citizens.
A special discount of 5% OF THE REGULAR RETAIL PRICE shall be granted TO SENIOR CITIZENS on BASIC AND PRIME COMMODITIES. The purchases should be for the PERSONAL AND EXCLUSIVE CONSUMPTION of said senior citizen.
Basic commodities include:
a. Rice/corn/bread(excluding cakes and pastries)
b. Fish and marine products
c. Pork/beef/poultry meat and eggs
d. Milk
e. Vegetables
f. Coffee and creamer
g. Sugar
h. Cooking oil
i. Salt
j. Soap
k. Firewood/charcoal
l. candles
m. Monthly utilization of water and electricity supplied by public utilities
Prime commodities include:
a. Fresh fruits
b. Flour
c. Dried/processed pork/beef/poultry meat and eggs
d. Dairy products
e. Canned goods
f. Noodles
g. Onions
h. Garlic
i. Geriatric Diapers
j. Herbicides
k. Poultry/swine/cattle feeds and other veterinary products for said animals
l. Nipa shingles/plyboard/construction nails
m. Batteries
n. Electrical supplies and light bulbs
o. Steel wire
What amount of discount is granted to senior citizens center and residential care groups?
At least 50% DISCOUNT ON THE CONSUMPTION OF ELECTRICITY, WATER, AND TELEPHONE of senior citizen centers and residential care groups (home for the aged) that are GOVERNMENT-RUN OR NONSTOCK NONPROFIT.
What is the treatment of Input VAT attributable to sale to a senior citizen?
The input tax attributable to the VAT exempt sale is considered as cost or expense account by business establishments and shall not be allowed as input tax credit.
T or F
If there is no name of the senior citizen or ID number indicated in the records of sales, the input tax attributable to the vat exempt sale claimed by establishment shall be disallowed.
True.
Explain the additional compensation expense granted to private entities employing senior citizens.
Private entities THAT WILL EMPLOY SENIOR CITIZENS AS EMPLOYEES shall be ENTITLED TO AN ADDITIONAL DEDUCTION FROM THEIR GROSS INCOME equivalent to 15% OF THE TOTAL AMOUNT PAID AS SALARIES AND WAGES TO SENIOR CITIZENS, PROVIDED:
- The employment period is at least 6 months
- Annual income of the senior citizen does not exceed the latest poverty threshold as determined by NEDA.
What amount is given to the nearest surviving relative of a deceased senior citizen as death benefit assistance?
2,000 is given to the nearest surviving relative of the deceased senior citizen in accordance with DSWD.
What is a PWD?
A person with disability shall refer to an individual suffering from restriction or different abilities as a result of mental/physical/sensory impairment to perform an activity in a manner or within the range considered normal for a human being.
How are senior citizens subjected to income tax?
Generally, senior citizens are subjected to income tax just like any ordinary individual taxpayer. However, unlike an ordinary individual taxpayer, SENIOR CITIZENS ARE:
- GENERALLY EXEMPT FROM VAT
- ENTITLED TO 20% DISCOUNT ON PURCHASE OF CERTAIN GOODS/SERVICES.
T or F
A senior citizen that is also a PWD may avail of a double discount since he is both a SC and PWD.
False. He may avail of only one at his option (either SC or PWD)
T or F
The 5% discounts on electric and water consumption of SCs also provides VAT exemption
False.
Explain the additional compensation expense granted to private entities employing PWDs.
Private entities that employ PWDs who meet the required skills or qualifications either as regular employee, apprentice, or learner, shall be ENTITLED TO AN ADDITIONAL DEDUCTION FROM THEIR GROSS INCOME EQUIVALENT TO 25% OF THE TOTAL AMOUNT PAID AS SALARIES AND WAGES TO DISABLED PERSONS.
