Fiscal Incentives - RA 9994 (Senior Citizen Act)

RA 9994 or the Expanded Senior Citizens Act of 2010 (February 15, 2010) amends the benefits and privileges of the elderly that were not previously included in RA 7432 or the Senior Citizens Act of 1992.

Pursuant to RA 9994, senior citizens are entitled to the following tax and non-tax incentives:

1. 20% discount and exemption from the VAT on the sale of goods and services (medicines; professional and medical and dental fees; transport fares; services in hotels, restaurants and recreation
centers; admission fees in theaters and other places of leisure; and funeral and burial services for the death of senior citizens);

2. Exemption from the payment of individual income taxes of senior citizens who are considered to be minimum wage earners in accordance with RA 9504 (An Act Amending Section 22, 24, 34, 35, 51, and 79 of the NIRC, as amended).



Furthermore, the government shall also provide the following
assistance:
1. 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, subject to the provision of Section 34 of the NIRC, as amended, provided, that such employment shall continue for a period of at least six (6) months;

2. At least fifty percent (50%) discount shall be granted on the consumption of electricity, water, and telephone by the senior citizens center and residential care/group homes that are government run or non-stock, non-profit domestic corporation organized and operated primarily for the purpose of promoting the well-being of abandoned, neglected, unattached, or homeless senior citizens, subject to the guidelines formulated by the DSWD; and

3. Realty tax holiday for the first five (5) years starting from the first year of operation to individual or nongovernmental institution caring for or establishing homes, residential communities or
retirement villages solely for, senior citizens.