By: Atty. Gregorio B. Austral, CPA
Ten percent discount and VAT exemption for solo parents
Caring for and raising children is challenging for parents, especially if both are
working. Parents juggle demands from work while providing for the needs of their
children 24/7. But it is double the hardship for a solo parent who faces this daily
challenge.
The government has responded to assuage this challenging life situation. On
January 17, 2023, the Bureau of Internal Revenue (BIR) issued Revenue Regulations
No. 1-2023, implementing the ten percent (10%) discount and VAT exemption for solo
parents pursuant to the Expanded Solo Parents Welfare Act (RA 11861).
Under RR No. 1-2023, tax privileges are granted to establishments giving the ten
percent (10%) discount and providing VAT exemption for their sale of goods identified
under RA 11861.
A solo parent who has a child or children with the age of six (6) years or under
and earning less than P250,000.00 annually.
The ten percent (10%) discount and the VAT exemption to a qualified solo
parent’s purchase from drugstores, pharmacies, grocery stores, and similar
establishments of baby’s milk, food supplements and micronutrient supplements,
sanitary diapers, medicines, vaccines and other medical supplements.
To avail of these benefits, the solo parent shall present his/her Solo Parent
Identification Card and Solo Parent Booklet by the Solo Parent Office (SPO) of the
province, municipality or city where he or she resides.
The law, however, must not be abused since RA 11861 prescribes penal
sanctions to those who abuse the law.