RR No. 9-2019 — Amends Sections 2, 3 and 7 of RR No. 5-2017 relative to the rules and regulations implementing RA No. 10754 entitled "An Act Expanding the Benefits and Privileges of Persons with Disability" relative to the tax privileges of PWD and tax incentives for establishments granting sales discount and prescribing the guidelines for the availment thereof, amending RR No. 1-2009 (Published i

REPUBLIC OF THL PHHLIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE C)uezon City

RE

REVENUE REGULATIONS NO. -2

SUBJECT: Regulations No. 1-2009. 05-2017. Relative to Rules and Regulations Implementing Republic Establishments Granting Sales Discount. and Prescribing the Guidelines for the Availment Thereof. Amending Revenue Amending Sections 2. 3 and 7 of Revenue Regulations (RR) No Privileges of Persons with Disability (PWD)" Relative to the Tax Privileges of Persons with Disability and Tax Incentives for Act No. 10754. entitied "An Act Expanding the Benefits and

TO All Internal Revenue Officials, Employees and Others Concerned

promulgated to amend Sections 2, 3 and 7 of Revenue Regulations (RR) No. 05.-- National Internal Revenue Code of 1997, as amended, these Regulations are hereby 2017 SECTION 1. Scope. Pursuant to the provisions of Sections 244 of the

and 2.9 are hereby inserted at the end of Section 2 of RR No. 05-2017 which shall read as follows: SECTION 2. Amendment. - New paragraphs to be known as paragraph 2.8

follow'ing terms und phrases shall be defined as follow's: Section 2. Definitions. - For purposes of these Regulations, the

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2.8 Basic Necessities - are goods vital to the needs of consumers for their sustenance and existence. For purposes of these Regulations, basic necessities shall include:

All kinds und variants of rice I Corn 3. All kinds of hreud (Pastries und cakes not included)

6 All kinds ot fresh eggs (excluding quuil eggs) Fresh, dried and canned fish and other marine products Fresh pork, heef and pouliry meat (including frozen and in various modes of puckaging)

8 Potable water in bottles and containers Fresh and processed milk (excluding milk labelled n: food

Io. Fresh fruils I. Locally manufactnad instant noodles I2. Coffec and coffec creamer 3 O All kinds of sugar (excluding sweeiener) Fresh vegetables including root crops supplement) IBUREAUOF

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16. Powdered. liguid. har lamdry and detergent soup IF. Firewood I4. All kinds of cooking oil I5. Salt ./,..i.. ( W 20? AC$Y F I8. Churcou!

20. Household liuefied petroleum gas. not more than I I kgs I9. All kines of candles. LPG conieni once every five (5) months hought from LPC

21. Kerosene. not more than 2 liter's per month dealers

2.9 Prime commodities - are goods not considered as basie necessities hut ure essential to consumers. For purposes of these Regulations, comnodities shall inctude

3 1 Flour Dried, processed and camned pork. beef and poultry meat Dairy products not falling under the definition of basic

5 A Onions amd garlic Iinegar, patis and soy' sauce necessities

6 Toilet Bath soap

Fertilieer 8 Pesticides 9 Herbicides I0. Poulty feeds, livestock fecds and fishery feeds Il. Veterinary products. 12. Paper. school supplies 13. Nipa shingle LA Sayali

22. Steel wires I5. Cement, clinker, GI sheets 17. Plywood 19. Construction nails 21. Electrical supplies und light bulhs 16. Hollowblocks 18. Plybourd 20. Batteries (excluding cellphone and automotive batteries)

to be read as follows: Section 3 of RR No. 5-2017. is hereby amended to include a new paragraph

BY OUALIFIED PERSONS WITH DISABHLITY (PWD) "SECTION 3. SALES DISCOUNTS WHICH MAY BE CLAIMED

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prorided by las shall not he considered for the 20% discount estuhlishmenis not ineluded in thp ahove emmeration expressh All other gous and services sold by theforegoing

prtvilege noteithstertng that the sane cre for Hherchsie use

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retail price. withou: exemption from the value-ucded tax (I'AT). of busic necessities und prime commodities enumeruted under Sec. 3 exeeed the amount of One Thousund Three Hundred Pesos (Php 1.300.00 per calendar week without curry-over of the unused and enjovment or uvailment of the PWD.However. every PwD (2.8) and (2.9) hereof. The total amount of sauid purchase shall not cmoumt. shall enjoy a special discoumi of five percent (5%) of the regular Provided. that said amount shall he spent on basic

personal exclusive consumption and'or enjovment within the on at leust four kinds of items listed as hasic necessities and prime necessities und prime commodities commensurule to his 'her culendar week. Provided. further that said umount shall he spent commodities.

follows: Section 7.1 of Section 7 of RR No. 5-2017. is hereby amended to be read as

WITH DISABILITY. ON SALE OF GOODS OR SERVICES TO OUALIFIED PERSONS :SECTION 7. EXEMPTION FROM VALUE-ADDED TAX (VAT)

commodities emumerated under Sec. 2 (2.8) amd (2.9) hereof. shull he exempt from the value-added tox. xxxxxx 7.1 Sales of any goods and services under Section 3 of these Regulations to PWD, except sale of basic necessities and prime XXX

parts thereof inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly. SECTION 3. Repealing Clause. Any rules and regulations. issuances or

newspaper of general circulation. whichever comes earlier. (15) days immediately follcwing publication in the Official Gazette or in any two SECTION 4.Effectivity. - --- These Regulations shall take effect fifteen

007 CARLOS G. DOMINGUEZ H Secretary of Finance AUG 1 % 2019 Recommending Approval:

PC

K - Commissioner of Internal Revenue CAESAR R. DULAY 025717

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