republic act no. 9994
TRANSCRIPT
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Republic Act No.
9994,Otherwise known as
thexpanded Senior Citizen Act of 201
Presented by: Atty. Falconi V. Millar
RR 7-2010
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SEC. 2. Definitions
Senior Citizen or Elderly
any Filipino citizen who is a resident of the Philippines,
Sixty (60) years old or above.
It may apply to senior citizens with dual citizenship status
provided they prove their Filipino citizenship and have at least
six (6) months residency in the !hilippines
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SEC. 2. Definitions
Resident Citizen -" Filipino #itizen with permanent$ le%al residence in the !hilippines&
and shall include one& who& havin% mi%rated to a 'orei%n country& has
returned to the !hilippines with a de'inite intention to reside therein& and
whose immi%rant visa has been surrendered to the 'orei%n %overnment.
Benefactor -e'ers to any person whether related or not to the senior citizen who
provides care or who %ives any 'orm o' assistance to him$her& and on whom
the senior citizen is dependent on 'or primary care and material support& as
certi'ied by the #ity or unicipal Social *el'are and +epartment ,''icer(#$S*+,).
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SEC. 2. Definitions
Dependent-" Senior #itizen& who may or may not be related to his$her -ene'actor
and who is livin% with and dependent upon his$her -ene'actor 'or his$her
chie' support.
Minimm !a"e Earner -" worer in the private sector who is paid the statutory minimum wa%e&
or an employee in the public sector with compensation income o' not more
than the statutory minimum wa%e in the non/a%ricultural sector where he$she
is assi%ned
#SC$ -he ,''ice 'or Senior #itizens "''airs o' cities and municipalities& which
is headed by a Senior #itizen who shall serve 'or a term o' three (1) years.
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SEC. %. &ncome 'a( of Senior Citizens.
2enerally& 3uali'ied Senior #itizens derivin% returnable income durin%
the taxable year& whether from compensation or otherwise,are re3uired to
'ile their income tax returns and pay the tax as they 'ile the return.
4owever& i' the returnable income o' a Senior #itizen is in the nature o'
compensation income but he 3uali'ies as a minimum wage earner under
" 5o. 708& he shall be exempt from income tax on the saidcompensation income sub9ect to the rules provided under evenue
e%ulations 5o. :0/;00< applicable to minimum wa%e earners&
=iewise& i' the a%%re%ate amount o' %ross income earned by the Senior
#itizen durin% the taxable year does not exceed the amount of hispersonal exemptions (basic and additional), he shall be exempt
from income tax and shall not be required to file an income tax
return.
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)ence* +e can still ne lia,le for ot+er ta(es sc+ as
:. he 20% final withholding tax on interest income 'rom anycurrency ban deposit
;. he 7.% final withholding tax on interest income 'rom adepository ban under the expanded 'orei%n currency deposit system
(Sec.;8(-)(:)& ax #ode.
1. I' the Senior #itizen will pre/terminate his 7/year lon%/term deposit or
investment
Four years to less than 'ive years / 7> hree years to less than 'our years / :;>?and
=ess than three years / ;0>
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)ence* +e can still ne lia,le for ot+er ta(es sc+ as
8. he !0% final withholding tax " ,n cash and$or property dividends
actually or constructively received 'rom a domestic corporation or 'rom a 9ointstoc company& insurance or mutual 'und company and a re%ional operatin%
head3uarters o' a multinational company? or ,n the share o' an individual in
the distributable net income a'ter tax o' a partnership (except a general professional
partnership) o' which he is a partner? or ,n the share o' an individual in the net
income a'ter tax o' an association& a 9oint account& or a 9oint venture orconsortium taxable as a corporation o' which he is a member or a co/venturer(Sec. 18(-)(;)& ax #ode.)
7. #apital gains tax 'rom sales o' shares o' stoc not traded in the stocexchan%e (Sec. ;8(#)& ax #ode)? and
6. he !0% final withholding tax on presumed capital %ains 'rom saleo' real property& classi'ied as capital asset& except capital %ains presumed to
have been realized 'rom the sale or disposition o' principal residence (Sec.;8(+)&ax #ode.)
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SEC. . /rant of Disconts to Senior Citizens 20
:. $edicines& includin% in'luenza and pnuemococcal vaccines& and such
other essential medical supplies& accessories and e3uipment to be determinedby the +,4.
,n all dru% stores& hospital pharmacies& medical and optical clinics and similar
establishments dispensin% medicines& the discount 'or sales o' dru%s$medicines shall be sub9ect to
the 2uidelines to be issued by the -F"+/+,4& in coordination with the !4I=4@"=4.
For this purpose& the term medicines shall re'er to both prescriptionand non"prescription medicines, and articles approed by the -F"+/+,4& which are intended 'or use in the dia%nosis& cure& miti%ation& treatment
or prevention o' disease in man? but do not include 'ood and devices or their
components& parts& or accessories.
;. ,n the professional fees of attending ph&sician's in all privatehospitals& medical 'acilities& outpatient clinics and home health care services&
where the discount shall be based on the compensation 'or services char%ed
'rom the Senior #itizen.
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!. n professional fees of licensed professional health worersprovidin% home health care services as endorsed by private hospitals or
employed throu%h home health care employment a%encies& where the
discount shall be based on the 'ees char%ed 'rom the Senior #itizen.+. n medical and dental serices, diagnostic and laborator& fees inall private hospitals& medical 'acilities& outpatient clinics& and home health care
services& in accordance with the rules and re%ulations to be issued by the
+,4& in coordination with the !hil4ealth.
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*$edical serices+ re'ers to hospital services& pro'essional services o'physicians and other health care pro'essionals and dia%nostic and
laboratory tests that are necessary 'or the dia%nosis or treatment o' an
illness or in9ury. *ental serices+ re'ers to oral examination& cleanin%& permanent and
temporary 'illin% extractions and %um treatments& restoration& replacementor repositionin% o' teeth& or alternation o' the alveolar or periodontium
process o' the maxilla and the mandible that re necessary 'or the dia%nosis
or treatment o' an illness or in9ury.
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*-ome health care serice+ re'ers to health or supportive careprovided to the Senior #itizen patient at home by licensed health care
pro'essionals to include but not limited to& physicians& nurses& midwives&
physical therapists and care%ivers.@. In actual fare for land transportation trael in
!ublic utility buses (!A-s)&
!ublic utility 9eepneys (!ABs)& axis&
"sian utility vehicles ("ACs)& Shuttle services and
!ublic railways& includin% =i%ht ail ransit (=)&
ass ail ransit ()& and !hilippine 5ational ailways (!5).
F. ,n actual transportation 'are 'or domestic air transport sericesand sea shipping essels and the lie& based on the actual 'are andadvanced booin%.
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2. ,n the utilization o' services in hotels and similar lod%in%
establishments& restaurants and recreation centers.
2:. For hotels and similar lod%in% establishments& the discount shall be'or room accommodation and other amenities o''ered by the
establishment& such as& but not limited to& massa%e parlor& sauna bath&
'ood& drins and other services o''ered.
For this purpose& the term hotel$hostel hall re'er to the buildin%& edi'ice
or premises or a completely independent part thereo'& which is used 'or there%ular reception& accommodation or lod%in% o' travelers and tourists& and
the provision o' services incidental thereto& 'or a 'ee.
*odging establishment shall re'er to a buildin% edi'ice& structure&
apartment or house includin% tourist inn& apartelle& motorist hotel andpension house en%a%ed in caterin%& leasin% or providin% 'acilities to
transients& tourists or travelers.
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he 'ollowin% are considered as lod%in% establishmentsD
/ourist nn1 a lod%in% establishment caterin% to transients& whichdoesnot meet the minimum re3uirement o' an economy hotel.
partelle 1 a buildin% or edi'ice containin% several independent and'urnished or semi/'urnished apartments& re%ularly leased to tourists and
travelers 'or dwellin% on a more or less lon%/term basis and o''erin% basic
services to its tenants& similar to hotels.
$otorist -otel 1 any structure with several separate units& primarilylocated alon% the hi%hways& with individual or common parin% space& atwhich motorists may obtain lod%in% and in some instance& meals.
Pension -otel 1 a private& or 'amily/operated tourist boardin% house&tourist %uest house or tourist lod%in% house& re%ularly caterin% to tourist&
and$or traveler& containin% several independent table rooms& providin%common 'acilities& such as toilets& bathrooms$showers& livin% and dinin%
rooms and$or itchen and where a combination o' board and lod%in% may
be provided.
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28. he term lod%in% establishment shall also include lod%in% houses& which
shall mean such establishments are re%ularly en%a%ed in the hotel business& but
which nevertheless& are not re%istered& classi'ied and licensed as hotels by
reason o' inade3uate essential 'acilities and services. Long termarrangement for residential purposes is not covered.
27. For restaurants& the discount shall be 'or the sale o' 'ood& drins& dessert
and other consumable items served by the establishments& includin% value
meals and promotional meals o''ered 'or the consumption o' the %eneral
public.
26. For this purpose& the term *restaurant+ shall re'er to any establishment
o''erin% to the public& re%ular and special meals or menu& 'ast 'ood& cooed
'ood and short orders. Such eatin% places may also serve co''ee& bevera%es and
drins.Food and goods sold by establishments that are not restaurantsare not covered, therefore not allowed to give the 20% discount.
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2E. For recreation centers& the discount shall be 'or the utilization o' services
in the 'rom o' 'ees& char%es and rental 'acilities& such as& but not limited to&
sports 'acilities and e3uipment.
4. ,n admission 'ees char%ed by theaters& cinema houses and concert halls&
circuses& carnivals& and other similar places o' culture& leisure and amusement&
where the discount shall be on the admission 'ees char%ed by the said
establishments?
I. ,n 'uneral and burial services 'or the death o' Senior #itizens. he
bene'iciary or any person who shall shoulder the 'uneral and burial expenses
o' the deceased Senior #itizen shall claim the discount& such asD
caset, embalmment, cremation cost and other related
serices 'or the Senior #itizen upon payment and presentation o' his deathcerti'icate?
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SEC. . Special Discont "ranted to Senior Citizensand Senior Citizens Centers.
% iscount upon concurrence o' the 'ollowin%D
:. he individual meters in the name o' the Senior #itizen
residin% therein?
;. he monthly consumption does not exceed
!00wh of electricit& and
30 m3 of water4 and
1. he privile%e is %ranted per household re%ardless o' the
number o' Senior #itizens residin% therein.
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SEC. . Special Discont "ranted to Senior Citizensand Senior Citizens Centers.
For water, electricit& and telephone& there shall be
%ranted by public utilities a discount o' at least 0%
on the consumption by a 5enior #iti6ens #enter and
residential care'group homes that are run by the2overnment or by a non/stoc& non/pro'it domestic
corporation or%anized and operated primarily 'or the
purpose o' promotin% the well/bein% o' abandoned&
ne%lected& unattached& or homeless Senior #itizens&sub9ect to the %uidelines 'ormulated by the +S*+.
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he discount that shall be %ranted to the Senior
#itizen shall be the promotional discount or the
minimum discountprescribed in this e%ulation. his means that& in no case shall the discount %ranted to
Senior #itizens be less than ;0>& or in the case o' water
and electricity supplied by public utility companies& be less
than 7>. /he minimum discount shall not be treated as an
addition to the promotional discount,provided that,
i' discount prescribed in the "ct 'or Senior #itizens&
the seller shall increase the discount to meet the said
minimum discount prescribed 'or Senior #itizens.
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SEC. . Determination of t+e $mont ofDiscont
./ he %rant o' the discount is only
'or the purchase o' %oods and
services enumerated in the "ct 'or/- 8#95: 95 ;
; :$;/
? /- 5;> #/@;.
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he 'ollowin% rules shall be observed in %rantin%
the discountD edical/elated !rivile%esD
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(a) $#; ; >9A P9>#-55/ he ;0> discount and C" exemption shall apply to the
purchase o' %eneric or branded medicines and dru%s by or 'or
senior citizens& includin% the purchase o' in'luenza and
pnuemococcal vaccines.
he ;0> discount and C" exemption shall also be %ranted to the
purchase o' vitamins and mineral supplements which are
medically prescribed by an attendin% physician 'or preventionand treatment o' diseases& illness& or in9ury whose prescription is
in the name o' the Senior #itizzen.
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edical/elated !rivile%esD
(b) 55;/ $# 59PP5,
##55>5 ; B9P$;/
" he ;0> discount and C" exemption privile%e shall alsoapply to the purchase o'
eye%lasses& hearin% aids&
dentures& prosthetics&
"rti'icial bone replacement lie steel& walers& crutches& wheelchairs whether manual or electric/
powered&
canes$3uad canes&
%eriatric diapers& and
other essential medical supplies& accessories and e3uipment by or
'or senior citizens.
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(c) $# ; ;/ 5>:#5 ; P>:/ ?#/5 1edical and dental services& diagnostic and laborator& tests such as but not
limited to /ays& computerized tomo%raphy scans& and blood tests& that are
re3uested by a physician as necessary 'or the dia%nosis and$or treatment o' anillness or in9ury are sub9ect to the ;0> discount and C" exemption.
(d) P>?55; ?5 ? //;;A P-=5#;'5 in allprivate hospitals& medical 'acilities& outpatient clinics and home health care
'acilities shall be sub9ect to the ;0> discount and C" exemption.
(e) P>?55; ?5 ? #;5 -/- C>D>5P>:;A -$ -/- #> 5>:#5 as endorsed by private
hospitals or employed throu%h home health care employment a%encies are
entitled to the ;0> discount and C" exemption.
he burden o' the discount shall be borne solely by the employmenta%ency%iven the health worerGs very minimal share compared to the a%ency
'ee.
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4otels& estaurants& ecreational #enters and !laces o'
=eisure and Funeral Services(a) 4,@=S "5+ SII=" =,+2I52 @S"-=IS4@5S H he
discount shall be 'or room accommodation and other amenities o''ered by the
establishment such as but not limited to hotel/based parlors and barbershops&
restaurants& massa%e parlor& spa& sauna bath& aromatherapy rooms& worout
%yms& swimmin% pools& 9acuzzis& tv bars& internet 'acilities& 'ood& drins and
other services o''ered.
(b) @S"A"5S H he discount shall be 'or the purchase o' 'ood& drins&
dessert& and other consumable items served by the establishments o''ered 'or
the consumption o' the %eneral public.
(c) For +ine/in Services under para%raphs (a) and (b) o' Section 1& and Section
8& para%raph ; o' "rticle E& the privile%e must be personally availed o'
by the senior citizen as de'ined under these ules& and no proxies or
authorization in 'avor o' another person who is not a senior
citizen will be honored.
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4otels& estaurants& ecreational #enters and !laces o'
=eisure and Funeral Services
(d) he phrase exclusive use and en9oyment o' the senior
citizen shall mean 'or the senior citizenGs personal
consumption only.
Shall not apply to childrenGs meals which are primarily
prepared and intentionally mareted 'or children.
Similarly& shall not apply to pre/contracted party paca%es
or bul orders.
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4otels& estaurants& ecreational #enters and !laces o'
=eisure and Funeral Services
(e) Food& drins and other consumable items provided in Section1 (a) and (b)& and Section 8& para%raph ; o' "rticle E purchased
by the senior citizen shall be processed separately as an
independent transaction 'rom his$her non/eli%ible
companions to ensure that it is 'or his$her exclusiveconsumption and to enable computation o' the ;0> discount and
the exemption 'rom the C"& which only the senior citizen is
entitled to.4owever& i' the %roup o' diners is composed entirely o' senior
citizens& all o' whom present valid senior citizens I+s& each shall
be entitled to a ;0> discount and exemption 'rom Calue "dded
ax
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4otels& estaurants& ecreational #enters and !laces o'
=eisure and Funeral Services
(h) For the above/mentioned transactions under para%raphs (')
and (%) Section 1 o' "rticle E& the ost @xpensive eal
#ombination (@#) shall apply to 'ood purchases bysenior citizens.
he @# is an amount correspondin% to the combination o' the most
expensive and bi%%est sin%le/servin% meal with bevera%e served in a
3uic service restaurant& is deemed 'lexible and is ad9usted accordin%ly
by 'ood establishments to estimate a sin%le 'ood purchase 'or an
individual senior citizen.
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ecreation #enters
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he discount shall be 'or the utilization o' services in the 'orm o'
'ees& char%es and rental 'or sports 'acilities or e3uipment& includin%%ol'cart rentals and %reen 'ees& or venues 'or ballroom dancin%&
yo%a& badminton courts& bowlin% lanes& table or lawn tennis&
worout %yms& martial arts 'acilities.
5on/pro'it& stoc %ol' and country clubs which are not open to the%eneral public& and are private and 'or exclusive membership only as
duly proven by their o''icial S@# re%istration papers& are not
mandated to %ive the ;0> senior citizens discount.
4owever& should restaurants and 'ood establishments inside thesecountry clubs be independent concessionaires and 'ood sold are not
consumable items under club membership dues& they must %rant the
;0> senior citizen discount
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"dmission 'ees !rivile%e
he discount shall be applied to admission 'ees
char%ed by theatres& cinema houses and
concert halls& circuses& carnivals& and othersimilar places o' culture& leisure and
amusement such as museums and pars.
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Funeral and -urial @xpenses
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he bene'iciary or any person who shall shoulder the 'uneral and
burial expenses o' the deceased senior citizen& shall claim thediscount under this ule 'or the deceased senior citizen upon
presentation o' the death certi'icate.
Such expenses shall cover theD !urchase o' caset or urn&
@mbalmin%
#remation cost& and
,ther related services such as Ciewin% or wae cost&
!ic/up 'rom the hospital mor%ue&
ransport o' the body to intended burial site in the place o' ori%in& -ut shall exclude
:. ,bituary publication and
;. he cost o' the memorial lot
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SEC. 7. 'a( 'reatment of t+e Discont
/ranted to Senior Citizens.
ay claim the discounts %ranted as a tax deduction based on thecost o' the %oods sold or services
-y way o' example& i' C"/re%istered dru% store sells :0 pieces o'
"llopurinol at an undiscounted sellin% price o' !7.00 per piece& the costo' the discount is computed as 'ollows
Sellin% !rice (C"/exempt) o' :0pcs. at !7.00$pcs. !70.00
=essD ;0> +iscount :0.00
"mount !ayable by the Senior #itizen !80.00
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SEC. 7. 'a( 'reatment of t+e Discont
/ranted to Senior Citizens.
he sellin% price to be char%ed by the seller must be net o' C"because the sale to Senior #itizens is exempt 'rom C".
he cost o' the discount in the above illustration is !:0.00and shall be allowed as a
deduction 'rom %ross income 'or the same taxable year that the discount is %ranted&
provided that, the total amount o' the claimed tax deduction net o' C"& i'
applicable& shall be included in their %ross sales receipts 'or tax purposes and shallbe sub9ect to proper documentation in accordance with the provisions o' the ax
#ode. his means that 'or the establishment to be allowed to claim the discount as a
deduction& the amount o' sales that must be reported 'or tax purposes is the
undiscounted sellin% price and not the amount o' sales net o' the discount.
he income statement o' the sellermust re'lect the discount& not as areduction o' sales to arrive at net sales& but as a deduction 'rom its
%ross income (sales less cost o' sales).
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@ntry to record the transaction in the boos o'
the seller
ebit 1 #ash PF05enior #iti6en iscount xpense !0
#redit 1 5ales P0
reated as an ordinar& and necessar& expenses deductible
'rom the %ross income o' the seller 'allin% under the
cate%ory o' itemized deductions& and can only be
claimed if the seller does not opt for the
ptional !tandard "eduction during thetaxable #uarter$year.
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+eduction 'rom the %ross income o' the seller is sub9ect
to the 'ollowin% conditionsD
,nly that portion o' the %ross sales exclusively used& consumed or en9oyed bythe Senior #itizen shall be eli%ible 'or the deductible sales discount.
he %ross sellin% price and the sales discount must be separately
indicated in the o''icial receipt or sales invoice
nl& the actual amount of the discount granted or a sales discount notless than the statutor& rate (20%, % or 0% when applicable),
whicheer is higher, based on the %ross sellin% price can bededucted 'rom the %ross income& net o' value added tax& i' applicable& 'or
income tax purposes& and 'rom %ross sales or %ross receipts o' the business
enterprise concerned& 'or C" or other percenta%e tax purposes.
he seller must record its sales inclusive o' the discount %ranted.
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+eduction 'rom the %ross income o' the seller is sub9ect
to the 'ollowin% conditionsD
,nly that portion o' the %ross sales exclusively used& consumedor en9oyed by the Senior #itizen shall be eli%ible 'or the
deductible sales discount.
he business establishment %ivin% sales discounts to 3uali'ied Senior
#itizens is re3uired to eep a separate and accurate record o' sales&which shall include the
name of the 5enior #iti6en,
5# ,
gross sales'receipts,
sales discount granted,
dates of transactions and
inoice numbers for eer& sale transaction to 5enior #iti6en.
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+eduction 'rom the %ross income o' the seller is
sub9ect to the 'ollowin% conditionsD
,nly business establishments sellin% any o' the
3uali'ied %oods and services to Senior #itizens where
an actual discount was %ranted may claim the
deduction.
he seller must not claim the ,ptional Standard
+eduction durin% the taxable year.
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SEC. 3. $4ailment of &ncome 'a(:. " Senior #itizen must 'irst be 3uali'ied as such by the #I or his duly authorized
representative (+, havin% 9urisdiction over the place where the Senior #itizen
resides)& by submittin% a certi'ied true copy o' his Senior #itizen Identi'ication#ard (,S#" I+) issued by the ,S#" o' the city or municipality where he resides?
;. 4e must 'ile a Sworn Statement on or be'ore Banuary 1: o' every yearthathis annual taxable income 'or the previous year does not exceed the poverty
level as determined by the 5@+" thru the 5S#-? and
1. I' 3uali'ied& his name shall be recorded by the +, in the aster =ist o' ax/
@xempt Senior #itizens 'or that particular year& which the +, is mandatorilyre3uired to eep.
4owever& a Senior #itizen who is a compensation income earner derivin% 'rom only
one employee an annual taxable income exceedin% the poverty level or the amount
determined by the 5@+" thru the 5S#- on a particular year& but whose income had
been sub9ected to the withholdin% tax on compensation& shall& althou%h not exempt
'rom income tax& be entitled to the substituted 'ilin% o' income tax return under
evenue e%ulations 5o. ;/
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SEC. 5. 6ia,ility for #t+er &nternal Re4ene 'a(es
" Senior #itizen shall also be sub9ect to the 'ollowin% internal revenue
taxes& amon% others& imposed under the ax #odeD
C" or other !ercenta%es axes& as the case may be. I' he is sel'/employed or en%a%ed in business or practice o' pro'ession& and his
%ross annual sales and$or receipts exceeds !:&700&000 or such amount to which
this may be ad9usted pursuant to Sec. :0(:) (C) o' the ax #ode& he shall be
sub9ect to C". ,therwise& he shall be sub9ect to the 1> percenta%e tax?
+onorGs axH "ll donations made by a Senior #itizen durin% any calendaryear& unless exempt under a speci'ic provision o' law& shall be sub9ect to the
donorGs tax imposed under itle III o' the ax #ode?
@state axH In the event o' death& the estate o' the Senior #itizen may also
be sub9ect to the estate tax 'ollowin% the rules enunciated under itle III o'
the ax #ode and its implementin% e%ulations?
@xcise ax on certain %ood? and
+ocumentary Stamp ax.
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SEC. 10. E(emption from $' of t+e sale toSenior Citizens.
Sales o' any %oods and services under Section 8 and 7 o' thesee%ulations to Senior #itizens shall be exempt 'rom C".
o ensure the 'ull entitlement o' the Senior #itizen to the discount
prescribed in the "ct& the sellers are precluded 'rom billin% any C" to
the Senior #itizen.
he sale to a Senior #itizen must 'ollow the invoicin%
re3uirements prescribed under evenue e%ulations
5o. :6/;007. i' the seller uses a !oint o' Sale achine
or a #ash e%ister achine in lieu o' the re%ular salesinvoice& the machine tape must properly se%re%ate the
exempt sales 'rom the taxable sales.
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SEC. 10. E(emption from $' of t+e sale toSenior Citizens.
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he input tax attributable to the exempt saleshall not be allowedas an input tax credit and must
be closed to cost or expense account by the seller.
he exemption herein %ranted will not cover other indirect
taxes that may be passed on by the seller to a Senior
#itizen buyer& such as percenta%e tax& excise tax& etc.
In such a case& the discount must be on the total cost o' the %oods
or services char%ed by the seller exclusive o' the tax.
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SEC. 11. 8ersonal E(emptions ofBenefactors of Senior Citizens
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he entitlement to claim the additional personal
exemption per dependent (not exceedin% 'our) is
allowable only to individual taxpayers with a 3uali'ied
dependent child or children sub9ect to the conditions set
'orth under Section 17(-) o' ax #ode& as amended.
I' re3uired to 'ile an income tax return (I)& the
-ene'actors shall state therein the name& birthday and
,S#" I+ number o' the dependent Senior #itizen.
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SEC. 12. $dditional Dedction from /ross&ncome of 8ri4ate Esta,lis+ment forCompensation 8aid to Senior Citizens
!rivate establishments employin% Senior #itizens shall be entitled to
additional deduction 'rom their %ross income e3uivalent to :7> o'
the total amount paid as salaries and wa%es to Senior #itizenssub9ect to the provision o' Section 18 o' the ax #ode and its implementin%
rules and re%ulations provided the 'ollowin% conditions are metD
:. he employment shall have to continue 'or a period o' at least 6 mos?
;. he annual taxable income o' the Senior #itizen does not exceed the poverty level
as may be determined by the 5@+" thru the 5S#-.
For this purpose& the Senior #itizen shallsubmit to his employer a sworncerti'icationthat his annual taxable income does not exceed the poverty level.
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SEC. 1%. 8enalties and #t+er Sanctions
:. For the 'irst violation& a 'ine o' not less than !70&000.00 butnot exceedin% !:00&000.00 and imprisonment o' not less than ;
years but not more than 6 years? and
;. For any subse3uent violation& a 'ine o' not less than
!:00&000.00 but not exceedin% !;00&000.00 and imprisonment
'or not less than ; years but not less than 6 years.
"ny person who abuses the privile%es %ranted herein shall be
punished with a 'ine o' not less than !70&000.00& but not morethan !:00&000.00& and imprisonment o' not less than 6 months.
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SEC. 1%. 8enalties and #t+er Sanctions
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I' the o''ender is an alien or a 'orei%ner& he shall be deported
immediately a'ter service o' sentence without 'urtherdeportation proceedin%s.
I' the o''ender is a corporation& or%anization or any similar
entity& the o''icial$s thereo' directly involve shall be liable
there'ore.
Apon 'ilin% an appropriate complaint& and a'ter due notice and
hearin%& the proper authorities may also cause the cancellation
or revocation o' the business permit& permit to operate&
'ranchise and other similar privile%es %ranted to any businessentity that 'ails to abide by the provisions o' the "ct and its
I and these e%ulations.
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hank
!ouAtty. Falconi V. Millar, CPAontact o.! 0"1#$%"0$1#11E&ail Addre''! ace&illar(ya)oo.co&
ace&illar(&*pla+1#.co&
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