THE Bureau of Internal Revenue (BIR) said the discounts on purchases made online by senior citizens (SC) and persons with disabilities (PWD) are mandatory.
“Online platforms should recognize the mandatory discounts given to senior citizens and persons with disabilities. The BIR has issued Revenue Regulation (RR) No. 8-2023 to this effect,” BIR commissioner Romeo Lumagui Jr. said yesterday.
Under RR No. 8-2023, the BIR said that the signature of the SC or PWD shall not be required for qualified purchases made online or through mobile applications.
“Nonetheless, the SC/PWD identification card number should still be provided by the SC/PWD when purchasing through online or mobile platforms; and the rules on entitlement to the benefits of the SC/PWD and to the tax deduction… and to future issuances pertaining to SC/PWD purchases through online or mobile applications, shall be strictly followed,” read part of the RR.
Lumagui said the issuance is “a step towards making the BIR a service-oriented agency, not merely a goal-oriented one.”
Meanwhile, the BIR is proposing to impose a creditable withholding tax of one percent on one-half of the gross remittances of online platform providers to their partner sellers or merchants.
The taxman had defended the proposal, saying it is not a new tax and its collection is within existing laws.
Finance Secretary Benjamin Diokno defended the BIR plan to collect a creditable withholding tax of one percent from partner-merchants of online platforms, saying this would make the tax system “fair.”
“It’s not only increasing tax revenues, it’s a matter of fairness. A good tax system should be fair. That should be one of the characteristics of a good tax system, fairness,” Diokno said. (GMA Integrated News)
