Republic Act 7432

AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT

BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representative of the Philippines
Congress assembled:

in

SECTION 1. Declaration of Policies and Objectives Pursuant to Article XV, Section 4 of the Constitution,
it is the duty of the family to take care of its elderly members while the State may design programs of social
security for them. In addition to this, Section 10 in the Declaration of Principles and State Policies provides: The
State shall provide social justice in all phases of national development. Further, Article XIII, Section II provides:
The State shall adopt an integrated and comprehensive approach to health development which shall endeavor to
make essential goods, health and other social services available to all the people at affordable cost. There shall
be priority for the needs of the underprivileged, sick, elderly, disabled, women and children. Consonant with these
constitutional principles the following are the declared policies of this Act:
a) a) To motivate and encourage the senior citizens to contribute to nation building;
b) b) To encourage their families and communities they live with to reaffirm the valued Filipino
tradition of caring for the senior citizens.
In accordance with these policies, this act aims to:
1) 1) Establish mechanism whereby the contribution of the senior citizens are maximized;

2) 2) Adopt measures whereby our senior citizens are assisted and appreciated by the
community as a whole;
3) 3) Establish a program beneficial to the senior citizens, their families and the rest of the
community that they serve.
SECTION 2. Definition of Terms. As used in this Act, the term senior citizen shall mean any resident of
the Philippines at least sixty (60) years old, including those who have retired from both government offices and
private enterprises, and has an income of not more than Sixty thousand pesos (P60,000.00) per annum subject to
review by the National Economic and Development Authority (NEDA) every three (3) years.

The term head of the family shall mean any person so defined in the National Internal Revenue Code.

SECTION 3. Contribution to the Community. Any qualified senior citizens as determined by the Office
for Senior Citizen Affairs (OSCA) may render his/her services to the community which shall consist of but not
limited to any of the following:
a)

Tutorial and/or consultancy services;

b)

Actual teaching and demonstration of hobbies and income generating skills;

c)

Lectures on specialized fields like agriculture, health, environmental protection and the like;

d)

The transfer of new skills acquired by virtue of their training mentioned in Section 4, paragraph

e)
Undertaking other appropriate services as determined by the Office for Senior Citizens Affairs
(OSCA) such as school traffic guide, tourist aid, pre-school assistant, etc.
In consideration of the services rendered by the qualified elderly, the Office for Senior Citizens Affairs
(OSCA) may award or grant benefits or privileges to the elderly, in addition to the other privileges
provided for under Section 4 hereof.
SECTION 4. Privileges for the Senior Citizens. The senior citizens shall be entitled to the following:
a) a) The grant of twenty percent (20%) discount from all establishments relative to utilization of
transportation services, hotels and similar lodging establishment,

restaurants and recreation centers and purchase of medicines anywhere in the country: Provided,
That private establishments may claim the cost as tax credit;
b) b) A minimum of twenty percent (20%) discount on admission fees charged by theaters, cinema
houses and concert halls, circuses, carnivals and other similar places of culture, leisure, and
amusements;
c) c) Exemption from the payment of individual income taxes: Provided, That their annual taxable
income does not exceed the poverty level as determined by the National Economic and
Development Authority (NEDA) for that year;
d) d) Exemption from training fees for socioeconomic programs undertaken by the OSCA as part of
its work;
e) e) Free medical and dental services in government establishment anywhere in the country,
subject to guidelines to be issued by the Department of Health, the Government Service
Insurance System and the Social Security System;
f)

f) To the extent practicable and feasible, the continuance of the same benefits and privileges
given by the Government Service Insurance System (GSIS), Social Security System (SSS) and
PAG-IBIG, as the case may be, as are enjoyed by those in actual service.

SECTION 5. Government Assistance. The Government shall provide the following assistance to those
caring for and living with the senior citizen:
a) The senior citizen shall be treated as dependents provided for in the National Internal Revenue
Code and as such, individual taxpayers caring for them, be they relatives or not shall be accorded
the privileges granted by the Code insofar as having dependents are concerned.

b) Individuals or non-governmental institutions establishing homes, residential communities or

retirement villages solely for the senior citizens shall be accorded the following:

1) Realty tax holiday for the first five (5) years starting from the first year of operations;

2) Priority in the building and/or maintenance of provincial or municipal roads leading to the
aforesaid home, residential community or retirement village.

SECTION 6. Retirement Benefits. To the extent practicable and feasible retirement benefits from both
the Government and the private sectors shall be upgraded to be at par with the current scale enjoyed by those in
actual service.
SECTION 7. The Office for Senior Citizens Affairs (OSCA). There shall be established in the Office of
the Mayor an OSCA to be headed by a Councilor who shall be designated by the Sangguniang Bayan and
assisted by the Community Development Officer in coordination with the Department of Social Welfare and
Development. The functions of this office are:
a) a) To plan, implement and monitor yearly work programs in pursuance of the objectives of this
Act;
b) b) To draw up a list of available and required services which can be provided by the senior
citizens;
c) c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue
nationally uniform individual identification cards which shall be valid anywhere in the country;

d) d) To serve as a general information and liaison center to serve the needs of the senior citizens.

SECTION 8. Municipal Responsibility. It shall be the responsibility of the municipality through the Mayor
to ensure that the provisions of this Act are implemented to its fullest.

SECTION 9. Penalties. Violation of any provision of this Act for which no penalty is specifically provided
under any other law, shall be punished by imprisonment not exceeding one
(1) month or a fine not exceeding One thousand pesos (P1,000.00) or both.
SECTION 10. Implementing Rules and Regulations. The Secretary of Social Welfare and Development
jointly with the Department of Finance, the Department of Tourism, the Department of Health, the Department of
Transportation and Communications and the Department of Interior and Local Government shall issue the
necessary rules and regulations to carry out the objectives of this Act.

SECTION 11. Appropriation. The necessary appropriation for the operation and maintenance of the
OSCA shall be appropriated and approved by the local government units concerned. The National Government
shall appropriate such amount as may be necessary to carry out the objectives of this Act.

SECTION 12. Repealing Clause. All provisions of laws, orders, and decrees, including rules and
regulations inconsistent herewith are hereby repealed and/or modified accordingly.
SECTION 13. Separability Clause. If any part or provision of this Act shall be held to be unconstitutional
or invalid, other provisions hereof which are not affected thereby shall continue to be in full force and effect.

SECTION 14. Effectivity. This Act shall take effect fifteen (15 days following its publication in one (1)
national newspaper of general circulation.
Approved,

(SGD.) RAMON V. MITRA

Speaker of the House of
Representatives

(SGD.) NEPTHALI A. GONZALES

President of the Senate
This bill, which is a consolidation of Senate Bill Nos. 835, 1435 and House Bill No. 35335, was finally
passed by the Senate and the House of Representatives on February 7, 1992.
(SGD.) CAMILO L. SABIO
Secretary General
House of Representatives
(SGD.) ANACLETO D. BADOY, JR.
Secretary of the Senate
Approved: April 23, 1992
(SGD.) CORAZON C. AQUINO
President of the Philippines

GUIDELINES ON THE ISSUANCE OF THE NATIONALLY UNIFORM IDs OF SENIOR CITIZENS

AS PER R.A. 7432

The national I.D. of Senior Citizens as per provision of RA 7432 is to be provided by the Department of
Social Welfare and Development (DSWD) for free. A senior citizen who has an income of P60,000.00 and below
per annum shall be granted the benefits per Section 4 of RA 7432. The process of securing the ID is as follows:

1. 1. A Senior Citizen shall enlist at the Office for Senior Citizens Affairs (OSCA) established at the Office of
the Mayor in his/her city or municipality;
2. 2. The OSCA shall determine the eligibility of the senior citizen. All eligible senior citizens shall provide
OSCA two (2) ID pictures taken within the year of enlisting at OSCA. One ID picture shall be attached to
the OSCA registration form to be kept by the said office. The other picture shall be for the ID card;

3. 3. The OSCA shall prepare the list of Senior Citizens to be certified by the local office of the Bureau of
Internal Revenue and the local Civil Registrars office;
4. 4. Duplicate copy of the certified list of senior citizens shall be submitted by OSCA to the DSWD filed
office;
5. 5. The Bureau of Disabled Persons Welfare, DSWD shall send to the 14 DSWD Field Offices number of
IDs needed by the Elderly of the region;
6. 6. The DSWD Field Office shall release the IDs to the respective local OSCAs;
7. 7. The OSCA shall issue the ID cards duly signed by the municipal/city Mayor to the qualified senior
citizens;
8. 8. The OSCA shall issue the nationally uniform ID card without cost to the Senior Citizen.
In case the ID is lost, it must be reported to the local OSCA. Replacement shall be issued upon request by
OSCA with corresponding cost. The cost per ID shall be determined by DSWD. The payment shall remain at
OSCA as part of its funds. No ID cards of senior citizens shall be issued directly by the DSWD Central Office or its
field offices.
SOCIAL DEVELOPMENT COMMITTEE
Resolution No. 1 (Series 1993)
Approving the Implementing Rules and Regulations of R.A. 7432 Maximizing the Contribution
of Senior Citizens to Nation Building, Grant Benefits and Privileges
Whereas, the Philippine Constitution recognizes the duty of the family to take care of its elderly members with
the state designing programs of social security for them, and the need for the state to promote social justice in all
phases of national development, by making available essential social services to the priority groups such as the
sick, elderly, disabled, women and children;
Whereas, RA 7432 has been enacted to motivate and encourage senior citizens to contribute to nation
building and to mobilize their families and the communities they live with to reaffirm the valued Filipino tradition of
caring for the senior citizen;
Whereas, the Medium Term Philippine Development Plan (MTPDP) 1993-1998 aims to pursue a better quality
of life for all Filipinos particularly the disadvantaged sectors by providing focused basic services to allow them to
manage and control their resources, as well as benefit from developmental interventions;

Whereas, the draft IR on R.A. 7432 was formulated by an Inter-agency Committee headed by the Department
of Social Welfare and Development (DSWD), and participated in by the Department of Interior and Local
Government (DILG), Tourism (DOT), Transportation and Communications (DOTC), Health (DOH) and Finance
(DOF), including the National Federation of Senior Citizens Association of the Philippines (NFSCAP).

NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, by the Chairman and the

members (of the NEDA, Boards Social Development Committee (SPC) Cabinet level, to approve the
Implementing Rules and Regulations of R.A. 7432.

(Sgd.) Honorable Nieves R. Confesor

Secretary, Department of Labor and Employment
Chairman, Social Development Committee
(Sgd.) Honorable Cielito F. Habito, Jr.
Secretary for Socioeconomic Planning
Co-Chairman, Social Development Committee

(Sgd.) Hon. Corazon Alma G. De Leon

Acting Secretary
Department of Social Welfare and Development

(Sgd.) Hon. Roberto S. Sebastian

Secretary
Department of Agriculture

(Sgd.) Hon. Ernesto D. Garilao

Secretary
Department of Agrarian Reform
(Sgd.) Hon. Juan M. Flavier
Secretary
Department of Health
(Sgd.) Hon. Rafael M. Alunan, III
Secretary
Department of Interior and Local Government
(Sgd.) Hon. Armand V. Fabella
Secretary
Department of Education, Culture and Sports

(Sgd.) Hon. Edelmiro A. Amante, Sr.

Secretary
Office of Executive Secretary

RULES AND REGULATIONS IN THE IMPLEMENTATION OF RA 7432, THE ACT TO

MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION
BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES
AND FOR OTHER PURPOSES
RULE I
TITLE, PURPOSE AND CONSTRUCTION
Article 1. Title These Rules shall be known and cited as the Rules and Regulations implementing the
Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and
for Other Purposes.
Article 2. Purpose These Rules are promulgated to prescribe the procedures and guidelines for the
implementation of the Act to Maximize the Contribution of Senior Citizens to National Building, Grant Benefits and
Special Privileges and for Other Purposes in order to facilitate the compliance therewith and to achieve the
objectives thereof.
Article 3. Construction These Rules shall be construed and applied in accordance with and in
furtherance of the policy and objectives of the law. In case of conflict and/or ambiguity, which may arise in the
implementation of these rules, the concerned agencies shall issue the necessary clarification. In case of doubt,
the same shall be construed liberally and in favor of the beneficiaries.
RULE II
DECLARATION OF POLICIES AND OBJECTIVES, SCOPE AND APPLICATION
Article 4. Declaration of Policies and Objectives Pursuant to Article XV, Section 4 of the Constitution it is
the duty of the family to take care to its elderly members while the State may design programs of social security
for them. In addition to this, Section 10 in the Declaration of Principles and State Policies provides: The State
shall provide social justice in all phases of national development. Further, Article XIII, Section II provides: The
State shall adopt an integrated and comprehensive approach to health development which shall endeavor to
make essential goods, health, and other social services available to all the people at affordable cost. There shall
be priority for the needs of the underprivileged, sick, elderly, disabled, women and children. Consonant to these
constitutional principles, the following are the declared policies of this Act:

a) a) To motivate and encourage senior citizens to contribute to nation building;

b) b) To encourage their families and the communities they live with to reaffirm the valued Filipino
tradition of caring for the senior citizens;
In accordance with these policies, the Act aims to:
a) a) Establish mechanisms whereby the contribution of the senior citizens are maximized;

b) b) Adopt measures whereby our senior citizens are assisted and appreciated by the community
as a whole;
c) c) Establish a program beneficial to the senior citizens, their families and the rest of the
community that they serve.
Article 5. Definition of Terms As used in these rules, the following terms shall be defined as follows:
5.1 5.1 Senior Citizen any resident citizen of the Philippines, at least sixty (60) years old, including those
who have retired from both government offices and private enterprises and has an income of not
more than sixty thousand pesos (P60,000.00) per annum subject to review by the National Statistics
Coordination (NSCB) every three (3) years.

Senior Citizens earning sixty thousand pesos (P60,000.00) per annum may be tapped as resource
persons to provide transfer technology and consultancy services or other services in the community.
Those without income are necessarily covered by this definition.
5.2 5.2 Resident Citizen refers to Filipino Citizen who establishes to the satisfaction of the Office of the
Senior Citizens Affairs (OSCA) the fact of his physical presence in the Philippines for at least 183
days with a definite intention to reside therein.
5.3 5.3 Benefactor shall mean any person whether related to the senior citizen or not who takes care of
him or her as dependent.
5.4 5.4 Head of the Family shall mean an unmarried or legally separated man or woman with one or
both parents or with one or more brothers or sisters or with one or more legitimate, recognized,
natural or legally adopted children and/or with one or more senior citizen living with and dependent
upon him for their chief support where brother/s or sister/s or children are not more than twenty one
(21) years of age unmarried and not gainfully employed or where such children, brother/s or sister/s,
regardless of age are incapable of self-support because of mental or physical defect.

5.5 5.5 National Identification Cards are the ID cards provided for initially for free by the Department of
Social Welfare and Development and issued through the Office for Senior Citizens Affairs (OSCA).

5.6 5.6 Office for Senior Citizens Affairs otherwise known, as the OSCA shall be established in the
Office of the Mayor as prescribed in the Act.
5.7 5.7 Department of Social Welfare and Development otherwise known as DSWD in this rule, shall
mean the national office located at Batasan Complex, Quezon City and its field offices in the fourteen
regions of the country.
5.8 5.8 Municipal/City Federation of Senior Citizens an organization of senior citizens in the locality
which is affiliated with the National Federation of Senior Citizens Associations of the Philippines
(NFSCAP). In the absence of such organization, any organization of senior citizens in the locality duly
accredited by the Sangguniang Bayan/Panglungsod.
5.9 5.9 Air Transportation Service shall mean as the carriage of passenger by air.
5.10
5.10 Hotel shall mean the building, edifice or premises or a completely independent part
thereof, which is used for the regular reception, accommodation, or lodging of travelers and tourists
and the provision of services incidental thereto for a fee.
5.11

5.11

Lodging Establishment shall mean any of the following:

a. a. Tourist Inn a lodging establishment catering to transients which does not meet the minimum
requirement of an economy hotel.

b. b. Apartel any building or edifice containing several independent and furnished or semifurnished apartments, regularly leased to tourists and travelers for dwelling on a more or less
long-term basis and offering basic services to its tenants, similar to hotels.

c.

c. Motorist Hotel any structure with several separate units, primarily located along the highway,
with individual or common parking space, at which motorists may obtain lodging and in some
instances, meals.

d. d. Pension House a private, or family-operated tourist boarding house, tourist guest house or
tourist lodging house, employing non-professional domestic helpers, regularly catering to tourist,
and/or travelers, containing several independent lettable rooms, providing common facilities such
as toilets, bathrooms/showers, living and dining rooms and/or kitchen and where a combination of
board and lodging may be provided.

The term lodging establishment shall include lodging houses, which shall mean such
establishments as are regularly engaged in the hotel business, but which, nevertheless, are not
registered, classified and licensed as hotels by reason of inadequate essential facilities and services.

5.12 5.12 Restaurant shall mean any establishment, duly licensed by the local government units
(LGUs ), offering to the public, regular and special meals or menu, cooked food and short orders.
Such eating-places may also serve coffee, beverages and drinks.

RULE III
CREATION OF THE OFFICE FOR SENIOR CITIZENS AFFAIRS
Article 6. Office for Senior Citizens Affairs (OSCA) There shall be established in the office of the Mayor
and OSCA to be headed by a councilor who shall be designated by the Sangguniang Bayan/Panglungsod in
coordination with the Department of Social Welfare and Development (DSWD) and the Municipal/City Federation
of Senior Citizens.
Article 7. The Functions of OSCA The OSCA shall perform the following functions:
a) a) To plan, implement and monitor yearly work programs in pursuance of the objectives of this
Act;
b) b) To mobilize the different local agencies to identify activities within their programs which can be
undertaken by the senior citizens;
c) c) To draw up a list of available and required services which can be provided by the senior
citizens;
d) d) To maintain a regular update on a quarterly basis a list of senior citizens;
The regular quarterly update of the list of senior citizens shall be made on the first week of the
first month of every quarter.
e) e) To issue nationally uniform individual identification cards which shall be valid anywhere in the
country;
It shall the responsibility of the local Social Welfare Development Officer or any other
officer performing such functions to review and process all applications
f)

f) To serve as a general information and liaison center to respond to the needs of the senior
citizens, the OSCA shall:

f.1 assist any complainant or aggrieved senior citizen in filing the appropriate action with the Office of
the Public Prosecutor or with the concerned Agency/Department until same is finally terminated or
resolved, and;
f. 2 assist the National Government in putting up the necessary appropriate notices of the mandatory
elderly discount privileges/benefits under RA 7432, which shall be posted at a conspicuous place in
all establishments.
This shall be made as a requirement in the renewal of business licenses annually.
The Municipal/City Federations of Senior Citizens shall assist OSCA in the foregoing

functions:
8.1

8.1 to provide the initial nationally uniform identification cards which shall be issued through the
OSCA.
The nationally uniform individual identification cards shall contain the following information:
a)
a)
b)
b)
c)
c)
d) d) Age, as supported by a certified birth certificate from the Office of Civil Registrar; Birth
date
e) e) Annual income, as supported by a certificate of exemption from payment of income tax
issued by the local office of the Bureau of internal
Revenue (BIR)
f)
f)
g)
g)

A senior citizen whose income is P60,000.00 and below annually shall be issued a national ID
card, which contains the mandatory elderly, discount privileges/benefits under RA 7432.

This shall be duly signed by the mayor of the senior citizens locality, the Secretary of the
Department of Social Welfare and Development (DSWD) and the Secretary of the Department of Interior
and Local Government (DILG). This shall be non-transferrable.
8.2. 8.2. to assist in developing the standards of programs and services of OSCA.
8.3. 8.3. to provide technical assistance and monitor services and projects to be undertaken by the
OSCA.
RULE IV
CONTRIBUTIONS IN THE COMMUNITY
Article 9. Contributions of Senior Citizens to the Community. Any qualified senior citizen as
determined by the OSCA may render his/her services to the community, which shall consist of, but not
limited to any of the following:
a. a. tutorial and/or consultancy services;
b. b. actual teaching and demonstration of hobbies and income generating skills;

c.

c. lectures on specialized field like agriculture, health, environmental protection;

d. d. transfer of new skill acquired by virtue of their training mentioned in Section 4 of

paragraph (d) of the Act;
e. e. undertake other appropriate services as determined by the OSCA such as school
traffic guide, tourist aide, pre-school assistance, etc.
In consideration of services rendered by the qualified elderly, the OSCA may award or grant
benefits/privileges to the elderly, in addition to the other privileges provided for under Section 4 of the Act.

In the absence of resources, OSCA shall mobilize resources of the community to provide awards
or incentives.
Financially able institutions desiring to acquire services of the elderly shall be mobilized to provide
a reasonable compensation e.g. transport, food, etc. for the duration of the senior citizens services.

Senior citizens earning above sixty thousand pesos (P60,000.00) annually can be granted some
awards or benefits by the OSCA for services rendered to his community e.g. consultancy services,
transfer of new technology, etc.

RULE V
PRIVILEGES AND BENEFITS OF SENIOR CITIZENS

A senior citizen shall be granted twenty per cent (20%) discount from all establishments relative
to utilization of transportation services, hotels and similar lodging establishments, restaurants and
recreation centers and purchases of medicines, anywhere in the country.
A. A. Transportation Benefits
A. 1 Public Water Transportation Every senior citizen who is a passenger of any public water
transportation service as this term is understood under the Public Service Act, as amended, shall
be entitled to a discount in the amount of not less than twenty per cent (20%) of the fare charged
or authorized, including discount of twenty per cent (20%) on purchases of meals or food items
from the restaurant either operated by concessionaire or the carrier and medicines on board
vessels.
The Maritime Industry Authority (MARINA) is hereby directed to issue corresponding
circulars or directives to the shipping industry for the implementation of these guidelines to ensure
compliance herewith, as well as requirements to ship operators/ship owners to disseminate, by
posters, handbills or pamphlets, the information about senior citizen on board vessels to
maximize the benefits of the senior citizens.

A senior citizen, unless his/her physical appearance shows that he/she undoubtedly 60
years old or above, may prove his/her age by any of, but not limited, to the following documents
or papers:
a. a. Official Identification Card from the OSCA of the LGUs, SSS/GSIS ID (old or new);
b.
c.
d.
e.

b. Drivers License or Birth Certificate;

c. Voters ID or Voters Affidavit;
d. Residence Certificate (old or new);
e. And other public/official record or document, from relevant government agencies.

A.2 Public Land Transportation every senior citizen who is a passenger of any public land
transportation services stated below, shall be entitled to a discount in the amount of not less than
twenty per cent (20%) of the fare authorized by the Land Transportation Franchising and
Regulatory Board (LTFRB).
The public land transportation referred to are the following:
a.
b.
c.
d.
e.
f.

a. Bus (pub)
b. Jeepney (puj)
c. Taxi
d. Shuttle Bus
e. Tourist Bus
f. Other modes of passenger land transportation devoted for public use and for a fee with
general or limited clientele.

The LTFRB is hereby directed to issue corresponding circular or directives to the public land
transport sector for the implementation of these guidelines to ensure compliance herewith, as well as
requirements to these operators to disseminate, by posters, handbills or pamphlets, the information about
senior citizens on board their vehicles to maximize the benefits of the senior citizens.

Every senior citizen is entitled to a grant of twenty per cent (20%) discount on the use of Light
Rail Transit (LRT) System.
Senior citizens who would wish to avail of the discount privileges on LRTC shall be guided by the
following procedures/conditions:
a)

a) Senior citizens shall personally apply for the issuance of discount tickets (in booklet form)
at the Light Rail Transit Authority (LRTC) or METRO, Inc. with office at the Administration
Building, LRTA Compound, Aurora Boulevard, Pasay City or at designated outlets at the LRT
system by presenting their ID card issued by the OSCA.

Discount tickets will be printed with control numbers and will allow a senior citizen to
purchase LRT tokens at a twenty per cent (20%) discount.
b)

b) A senior citizen shall personally surrender to any LRT token teller on duty at any LRT
station/terminal where he/she will board, a discount ticket for every token he/she will
purchase.
Upon surrender of the discount ticket and presentation of the national ID card by a senior
citizen, he/she shall pay for the LRT token at twenty per cent (20%) discount. (A senior
citizen is entitled to purchase only one (1) LRT token at discounted price every time he/she
avails of the LRT System.)
To avoid untoward incidents, senior citizens are discouraged from riding the LRT during
peak hours from 7:00 A.M. to 9:00 A.M. and from 5:00 P.M. to 7:00 P.M. due to the volume of
rider ship.
Twenty per cent (20%) discount for LRT tokens are available only at LRTC
stations/terminals. Discounted token are not available from off-station token vendors.

A.3. Domestic Air Transportation Every senior citizen who is duly certified by t he OSCA is
entitled to twenty per cent (20%) discount from the Civil Aeronautics Board (CAB) approved
and published airline rates for domestic air
transportation services.
This Act shall cover individuals, partnership, or corporations and all other entities engaged in the
carriage of passengers by air.
The following are the conditions required of a senior citizen to be able to avail of the twenty per
cent (20%) discount on air transportation services:
a. a. The senior citizen should present his/her identification card duly issued by
OSCA in securing a passage ticket;
b. b. He/She should personally secure the passage ticket;
c.

c. The passage ticket shall be non-transferable.

B. B. Hotels/Lodging Establishments Benefits the twenty per cent (20%) discount privileges of the
senior citizen from hotels/establishments shall be limited to room accommodation only.

The DILG shall issue the necessary circulars or directives to tourism establishments for
the implementation of these guidelines and to ensure compliance herewith.

Likewise the Department of Tourism (DOT) shall issue the corresponding Administrative
Order to DOT accredited establishments.
C. C. Recreation Center Benefits A senior citizen is entitled to a minimum of twenty per cent (20%)
discount on all admission fees charged by the theatres, cinema houses and concert halls,
circuses, carnivals and other similar places of culture, leisure and amusement.

D. D. Purchases of Medicine Benefits A senior citizen is entitled to a minimum of twenty per cent
(20%) discount in the purchase of medicine for his personal use and according to his personal
needs.
In the purchase of medicine, a senior citizen or his doctor or the latters duly authorized
representative should always present the national identification card duly certified by the OSCA
together with the doctors prescription in case of prescription drugs. If over-the-counter, the
number of drugs purchased shall be commensurate to the elderly persons needs.

citizen.

These discount privileges shall be limited and exclusive for the benefit of the senior

E. E. Income Tax Benefits/Tax Credits For purpose of claiming tax credits, private establishments
are required to keep a separate record of sales made to senior citizens which shall include the
name, identification number, gross sales, discount and date of transaction.

A senior citizen whose annual taxable income does not exceed the poverty level as
determined by NSCB shall be exempted from payment of individual income tax. Provided that:

a)

a) A senior citizen whose annual taxable income exceed the said poverty level
shall be liable to the individual income tax for the full amount of his/her taxable
income net of personal and additional exemptions;

b)

b) Annual taxable income shall refer to the annual gross compensation,

business and other incomes as defined in Section 28 of the National Internal
Revenue Code (NIRC) other than income subject to tax under paragraphs (b),
(c), (d) and (e) of Section 21 of the NICR which include certain passive
incomes, capital gains from sale of shares of stock and capital gains from sale
of real property;

c)

c) The senior citizen is a resident citizen;

d)

d) NEDA shall inform the Commissioner of Internal Revenue in writing and

publish in a newspaper of general circulation the estimated poverty threshold.

F. F. Training Fee Benefits A senior citizen is exempted from training fees for socio-economic
programs undertaken by or in coordination with the OSCA as part of its work.
G. G. Medical/Dental Benefits A senior citizen is entitled to free medical and dental services in
government establishments anywhere in the country subject to guidelines to be issued by the
Department of Health (DOH), the Government Service Insurance System (GSIS) and the Social
Security System (SSS).
G.1 The DOH shall direct the government establishments in the entire country to provide free
medical and dental services to senior citizens.
a. a. The term free shall mean free of charge on medical/dental services where capability
and facility for such services are available,
b. b. The term medical services shall refer to services pertaining to the medical
care/attendance and treatment given to senior citizens. It shall include health
examinations, medical/surgical procedures within the competence and capability of DOH
establishments/hospitals/units and routine/special laboratory examinations and ancillary
procedures as required.
c.

c. The term dental services shall refer to services pertaining to dental care/attendance
and remedy given to senior citizens. It shall include oral examination, curative services
like permanent and temporary fillings, extractions and gum treatment.

d. d. Professional services shall refer to services rendered or extended by medical, dental

and nursing professionals, which shall also include services rendered by surgeons, EENT
practitioners, gynecologists, urologists, neurologists, psychiatrists, psychologists and
other allied specialists.
e. e. Counseling services shall refer to advices given by health professional, e.g.
psychologists, psychiatrists, nutritionists, nurses and other allied health professionals in
support to specific treatment of illnesses.
Provision of all of the above-mentioned services shall be subject to availability of appropriate
facilities and trained manpower expertise of the receiving establishment.
f.

f. Government establishments shall refer to and limited to DOH hospitals, which shall
include general hospitals, medical centers and regional hospitals directly under the full
control and supervision of the DOH.

g. g. The term anywhere in the country shall be construed to mean health privileges senior
citizens may avail of from any hospital in the Philippines, as defined in these guidelines,
irrespective of their place of residence/locality, subject to availability of facilities and
manpower/technical expertise of the receiving establishment.

The following are the health services that may be availed of for free in any government
establishments, subject to availability of facilities and

manpower/technical expertise of the receiving government establishment:

a.
b.
c.
d.
e.
f.
g.

a.
b.
c.
d.
e.
f.
g.

Medical and dental services

Out-Patient consultations
Available medicines in all public health programs
Available diagnostic and therapeutic procedures
Use of operating rooms, special units and central supply items
Accommodations in the charity ward
Professional and counseling services

To be able to avail of the aforementioned services, the following mechanics are stipulated:
a. a. A senior citizen may obtain the benefits from any government establishment.

b. b. He/she shall present his/her national ID card issued by the OSCA to the medical and
social services or Medical Social Worker designated who shall determine the validity of
his/her ID card.
c.

c. Non-presentation of the national ID card shall be sufficient reason for denial of free
hospital benefits.

d. d. In case of emergency, the medical benefits shall be accordingly provided by the

receiving hospital even if the ID is not available. However, the national ID card should be
presented within a reasonable time. Non-presentation of the national ID card shall be
sufficient ground for charging the service already given and denial of further availment of
the benefits.
e. e. Should the senior citizen choose to be admitted to a private room/pay ward or be
transferred from a free room to a pay room, the amount equivalent to the rate of a free
room should be discounted from that of the pay room/ward.

f.

f. As regard referral or transfer of senior citizen-patient to another government

establishment, the receiving hospital shall provide the full benefits under this rule. In case
of transfer/referral between the DOH hospitals, procedures shall be based on the DOH
Network Guidelines.

The responsibilities of the government establishment are as follows:

a. a. Provide all available medical and dental services, as defined in these guidelines that may
be deemed necessary in the promotion of the health of senior citizens;

b. b. Establish a system by which all senior citizens in dire need of health serve shall be given
priority and utmost consideration;
c.

c. Establish and maintain a recording/reporting system which data may be used as inputs for
program/project planning and evaluation; and

d. d. Strengthen their competence and capability to evaluate and manage geriatic cases through
continuing education.
The responsibilities of senior citizens who are entitled to health benefits and privileges as indicated
and certified by valid national identification cards issued by the OSCA, are as follows:
a. a. Adhere to rules and regulations relative to the implementation of this program;
b. b. Recognize that the government establishments have limitations and constraints in providing
health services and not demand for services that are not available and beyond the level of their
competence;
c.

c. Secure on their own payable services that are not covered by their health benefits and
privileges stipulated herein; and

d. d. Safeguard the integrity of their identification card and shall not allow their misuse and abuse.

To the extent practicable and feasible, the continuance of the same benefits and privileges shall be
given to senior citizens by the GSIS, SSS and PAG-IBIG as the case may

be as are enjoyed by those in the actual service.

G.2 Benefits extended to senior citizens who are retirees of the GSIS are as follows:
a. a. Life Insurance
If a retiree opts to maintain his life insurance policy with the System, he may convert his
compulsory life insurance into an optional insurance by paying directly to the System the monthly
premiums due thereon (personal plus government share), up to its maturity date. Amount of
monthly premiums shall be determined by the System. He will be entitled to receive benefits as
enumerated below:
1.

1. maturity benefit retiree will receive the total face value of the policy, less any
indebtedness thereon.

2.

2. policy loan loanable amount will not exceed 90% of the cash value of his insurance
at the time of application.

3.

3. death benefit when the retiree dies while life insurance membership is in force prior
to maturity date, the designated beneficiaries double indemnity.

b. b. Retirement

c.

1.

1. Retirees under PD 1146 or RA 660 shall resume receiving their basic monthly pension
(BMP) for life after the lapse of the 5-year guaranteed period.

2.

2. Upon death of a pensioner who retired under PD 1146 or RA 660, the primary
beneficiaries (legal spouse and minor children) shall receive a basic survivorship pension
(BSP) equivalent to 50% of the BMP plus dependents pension (DP) equivalent to 10% of
the BMP for every minor child, if any, but not exceeding five. The spouse shall receive
the BSP for life until she/he remarries. The minor children shall continue receiving DP
until emancipated by marriage, gainful employment or upon reaching 21 years of age. A
mentally or physically incapacitated child, however, shall receive DP for life.

3.

3. Funeral Benefit payable upon death of the retirees, pensioner or gratuitant, the latter
must have retired with at least 20 years of service to be entitled to the benefit.

c. Medicare
Coverage:
Employees who retired from the service before age 60 may opt to continue their
membership within 6 months from date of retirement by contributing both personal and
government shares of their Medicare premiums until their 60 th birthday.
However, a government employee who retires under RA 1616, PD 1146 or PD 1184 at
age 60 or above or under RA 660 (regardless of age) are covered without paying contributions
pursuant to PD No. 408. Effective January 1, 1992, their legal dependents are also extended
Medicare benefits.
Legal Dependents:
1.

1. The legal spouse who is not a Medicare member.

2.

2. The unmarried and unemployed children, including legitimated, acknowledged, legally

adopted and step children below 21 years of age;

3.

3. Children 21 years old or above with disability acquired before the age of 21.

Benefits under the Medicare Act consist of:

1. 1. Allowance for room and board
2. 2. Allowance for drugs and medicines
3. 3. Allowance for x-ray/laboratory examinations/others (others means items such as
syringes, gloves, vaco sets, butterfly, contrast media and other agents used in
establishing correct diagnosis).
4. 4. Surgeons fee
5. 5. Medical Practitioners fee

6. 6. Anesthesiologists fee
7. 7. Operating room fee
8. 8. Allowance for sterilization procedures
Types of Non-Compensable Treatments
1.
2.
3.
4.

1.
2.
3.
4.

Cosmetic surgery or treatment

Optometric services
Psychiatric services
Services which are purely diagnostic

d. d. Employees Compensation (PD 626)

Only employment-connected injury or sickness resulting in disability or death is
compensable. It therefore presupposes the existence of an employee-employer relationship at
the time the contingency occurs. The legal and/or medical evaluation to determine compensability
is lodged solely with the System.
Type of Disability
Temporary Total Disability (TTD) 1.
than P10,00 nor more than P90.00
for a period not exceeding 120
days and in severe cases up to
240 days.
2.
(for work-connected injury or
sickness) consisting of:
2.1 hospitalization room and board
supplies, x-ray, medicines, laboratory,
professional fee.
2.2 ambulatory/d o miciliary care,
services for hospitalization except room
and board
2.3
reimbursement of medicines (in
case of non-confinement)
Permanent Partial Disability (PPD)

Permanent Total Disability (PTD)

DEATH
A. Death of the Employee

child, not exceeding five) payable to:

a.

a. primary beneficiary/ies for

life and/or as long as
qualified

b.

b. secondary beneficiary/ies
(in the absence of primary
beneficiary/ies) for a period
not ot exceed 60 months

B. Death of a PTD Pensioner

G.3 The SSS provides medical and dental services to its retirees and their dependents through the
Medicare Program without the need for additional contributions. However, the Medicare Program does not cover
the entire cost of hospitalization.
The SSS medical staff in the regional offices render free consultation to SSS pensioners.
The SSS regularly evaluates the level of pension of the retirees.
The SSS involvement in this Act is limited only to its retirees since the SSS funds are held in trust for the
exclusive benefits of the private workers and their beneficiaries. Usage of such funds for other purposes is not
allowed under SSS charter.
G.4 Membership in the PAG-IBIG Fund shall be open to all senior citizens who opt to continue with their
provident savings in the Fund, even after their retirement from their employment or upon reaching the age of sixty
(60) years.
a.

a. Senior citizens who wish to enlist with the PAG-IBIG Fund for the first time may do so upon proof of
gainful employment, or of being self employed, or of membership in trade/service cooperative (e.g.
farmers cooperatives, fishermens cooperative, loom weavers association, handicraft makers
organization, and the like) and upon payment of the monthly minimum contribution rate as may be set up
by the PAG-IBG Fund from time to time.

b.

b. PAG-IBIG members of good standing shall be entitled to avail themselves of PAG-IBIG loan privileges
subject to the customary guidelines on loan availments. For PAG-IBIG housing loans, the loan
availments. For PAG-IBIG housing loans, the loan period shall not
be more than twenty five (25) years but in no case shall it exceed the difference between the present age
reckoned from the borrowers nearest birthday and his seventieth (70 th) year; in the case of a joint and
several loan, the loan period shall be based on the age of the youngest of the co-borrowers.

RULE VI
GOVERNMENT ASSISTANCE

Article 10. Personal Tax Exemption for Benefactor A senior citizen shall be treated as dependent
provided for in the NIRC and as such, shall be accorded the privileges granted by the Code insofar as having
dependent are concerned. In determining personal exemptions allowable to individuals under Section 29 (k) (l) of
the NIRC, a senior citizen may be granted as a dependent. For this purpose, the definition of the term Head of the
family under the said Section shall be deemed amended to refer to the condition under Article (5) of this
implementing rules and regulations. The OSCA shall require the senior citizen to declare his benefactor who will
be granted the exclusive right to claim him as dependent and issue a identification thereof. The said certification
shall be presented by the benefactor to the BIR for purposes of determining personal exemptions.

The personal tax exemption shall take effect January 1992.

Article 11. Property Tax Exemptions and Privileges for Individuals and Non-Government Institutions.
Individuals or non-government institutions establishing homes, residential communities or retirement villages
solely for the senior citizen shall be accorded the following:
a. a. One per cent (1%) property tax exemption for the first five years starting first year of operation:
b. b.
(1) (1) The exemption is automatically withdrawn effective on the year after the institution ceases
its operation before the end of the fifth year of operation. The owners of the properties shall
thereafter be liable for the realty taxes applicable thereon.

(2) (2) The first year of operation shall be reckoned from the date the institution was granted a
mayors permit to operate the establishment.
(3) (3) The exemption shall apply prospectively. Establishments which are beyond their fifth year
of operation shall not be entitled to refund of their payments or condonation of their realty tax
delinquencies during their first five years of operation. However existing establishments which
have been operating for less than five years shall be entitled to the exemption in the remaining
of the five years.

c.

c. Priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid
home residential community or retirement village.

Provided that: in both cases, said exemption and priority shall apply only when said homes residential
communities or retirement villages are non-stock, no-profit as such which shall be presented to the Assessors
Office of the LGUs concerned.
RULE VII
PENALTY PROVISIONS
Article 12. Penalties. Any person who willfully refuses to grant the privileges provided for by RA 7432 or
violates any provision thereof and for which no penalty is specifically provided for by any existing law, shall be
punished by imprisonment not exceeding one (1) month or a fine not exceeding One Thousand Pesos
(P1,000.00) or both.
Any
organization,
private
government
establishment
and
government
department/bureau/agency/institution who willfully refuses to grant the privileges given to senior citizens or
violates any provision of RA 7432 shall be administratively dealt with by any of the agency/department concerned
including, but not limited to the cancellation of permit/s or franchise/s to operate to a business establishment or
institution or public service.

RULE VIII
FINAL PROVISIONS
Article 13. Implementation, Supervision, Monitoring and Technical Assistance.
a. a. Municipal Responsibility. It shall be the responsibility of every municipality, through its chief
executive, to ensure that the provisions of RA 7432 are operationalized and implemented to the
fullest within its jurisdiction.
b. b. The DILG, having been designated by the President to exercise general supervision over
LGUs, by virtue of the Local Code, rule XI, shall ensure the

compliance of LGUs with this Act. It shall likewise institute the necessary interventions aimed at
enhancing the capacities of the LGUs in implementing the above-mentioned provisions.

c.

c. On a national scale, the DSWD, by virtue of its monitoring and technical assistance function
shall ensure the viability and standard of the programs and services that are implemented, while
the DILG shall ensure compliance of LGUs.

Article 14. Appropriation. The municipality, through its Sangguniang Bayan shall appropriate funds on a
yearly basis for the maintenance and other operating expenses of the OSCA to incorporate in the annual budget.

The concerned provincial/municipal government agency shall likewise mobilize other sources of funds
particularly those that are made available for local development activities by the national government, the
legislature and the private sector.
Article 15. Separatibility Clause, If, for nay reason/s, any part or provision of this Implementing Rules and
Regulations shall be held unconstitutional or invalid, other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
Article 16. Effectivity Clause. This Implementing Rules and Regulations shall take effect fifteen (15) days
following its publication in one (1) national newspaper of general circulation.
ADDENDUM
REVENUE REGULATIONS NO. 2-94
(August 23, 1993)

SUBJECT:

Republic Act No. 7432 otherwise known as an Act to Maximize the Contribution of
Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for
Other Purposes.

To: All Internal Revenue Officers and Others Concerned.

Section 1. SCOPE Pursuant to Section 245 of the National Internal Revenue Code (NIRC) as amended,
in relation to Section 10 of Republic Act No. 7432, these regulations are hereby promulgated to (1) implement the
provisions of Section 4 and 5 (a) of the said Act granting tax exemption and other privileges to senior citizens, and
(2) prescribe the guidelines for the availment thereof.
SECTION 2. DEFINITIONS. For purposes of these regulations:
a. a. Act refers to Republic Act No. 7432.
b. b. Senior citizen means any resident citizen of the Philippines at least sixty (60) years old,
including those who have retired from both government offices and private enterprises, and has
an income of not more than sixty thousand pesos (P60,000.00) per annum subject to review by
the National Economic and Development Authority (NEDA) every three (3) years.

The term qualified senior citizen shall refer to a resident Filipino citizen who meets the statutory
requirements of Section 2 of the Act and Section 2(b) of these regulations.
c.

c. Resident citizen refers to a Filipino citizen with permanent/legal residence in the Philippines,
and shall include those, who, having migrated to a foreign country, have returned to the
Philippines with a definite intention to side therein, and whose immigrant visa has been
surrendered to the foreign government.
d. d. Dependent a qualified senior citizen whether or not related to a benefactor with whom he
lives and who takes care of him/her.
e. e. Head of the Family an unmarried or legally separated man or woman, with one or both
parents, or with one or more brothers or sisters, or with one or more legitimate, recognized
natural or legally adopted children, living with and dependent upon him/her for their chief support,
where such brothers or sisters or children are not more than twenty-one (21) years of age,
unmarried and not gainfully employed or where such children, brothers or sisters, regardless of
age are incapable of self-support because of mental or physical defect.

The term head of family includes an unmarried or legally separated man or woman who is the
benefactor of a qualified senior citizen as defined in Section 2 of the Act and these regulations.

The term qualified senior citizen shall refer to a resident Filipino citizen who meets the statutory
requirements of Section 2 of the Act and Section 2(b) of these regulations.

f.

f. Benefactor any person whether or not related to the senior citizen who takes care of the latter
as a dependent.

g. g. OSCA refers to the Office for Senior Citizens Affairs.

h. h. Income/Annual Taxable Income of a resident Senior Citizen shall refer to the annual gross
compensation, business and other income received during each taxable year from all sources as
defined in Section 28 of the NIRC, which shall not exceed the poverty level of P60, 000 or such
amount as may thereafter be determined by the NEDA.
However, income derived by a qualified senior citizen from the following sources:

1. 1. Interest income from Philippine currency bank deposits, yield and other monetary
benefit from deposit substitutes, trust fund and similar arrangements; royalties, prizes and
winnings (Sec. 21 (c), NIRC);
2. 2. Capital gains from sales of shares of stock (Sec. 21 (d), NIRC); and
3. 3. Capital gains from sales of real property (Sec.21(e), NIRC).
shall not be included in the determination of his income/annual taxable income which should not
exceed the poverty level of P60,000 or such amount as may thereafter be determined by the
NEDA for a certain taxable year inasmuch as income from such sources shall be subject to the
corresponding income tax rates prescribed under Section 21 (c), (d) and (e) of the NIRC as
amended.
i.

i. Tax Credit refers to the amount representing the 20% discount granted to a qualified senior
citizen by all establishments relative to their utilization of transportation services, hotels and
similar lodging establishments, restaurants, drugstores, recreation centers, theaters, cinema
houses, concert halls, circuses, carnivals and other similar places of culture, leisure and
amusement, which discount shall be deducted by the said establishments from their gross
income for income tax purposes and from their gross sales for value-added tax or other
percentage tax purposes.

Sec. 3. INCOME TAX BENEFIT AND PRIVILEGES FOR THE SENIOR CITIZENS. Senior citizens
qualified as such by the Commissioner of Internal Revenue or his duly authorized representative who, for
purposes of these regulations, is the Regional Director of the Revenue Region having jurisdiction of the city or
municipality where they are permanent residents shall be entitled to the following tax benefit and privileges:

a.

a. Exemption from the payment of individual income tax provided that their
annual taxable income does not exceed the poverty level of P60,000.00 or such
amount as may be determined bt the NEDA for a certain taxable year.

b.

b. A 20% discount from all establishements relative to utilization of

transportation services, hotels and similar lodging establishments, restaurants
and recreation center, and on purchases of medicine anywhere in the country.

c.

c. A minimum of twenty perecent (20%) discount on admission fees charged by

theaters, cinema houses and concert halls, circuses, carnivals and other similar
places of culture, leisure, and amusement.

Sec. 4. RECORDING/BOOKKEEPING REQUIREMENTS FOR PRIVATE ESTABLISHMENTS. Private

establishments, i.e., transport services, hotels and similar lodging establishments, restaurants, recreation centers,
drugstores, theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture leisure
and amusement, giving 20% discounts to qualified senior citizens are required to keep separate and accurate
record of sales made to senior citizens, which shall include the name, identification number, gross sales/receipts,
discounts, dates of transactions and invoice number for every transaction.

The amount of 20% discount shall be deducted from the gross income for income tax purposes and from
gross sales of the business enterprise concerned for purposes of the VAT and other percentage taxes.

Sec. 5. AVAILMENT OF INCOME TAX EXEMPTION. Asenior citizen who shall avail of the exemption
from income tax is required to submit the following documents to the Revenue District

Officer (RDO) of the place where he is a permanent resident, who shall make the necessary verification and
report for purposes of the income tax exemption to be issued by the Commissioner of Internal Revenue or his duly
authorized representative:

A. A. Certified true copy of his Birth Certificate/Baptismal Certificate or in the absence thereof, a certification
from the National Statistics and Census Bureau or an affidavit by two
(2) disinterested credible persons who know personally the senior citizen.
B. B. If he has a benefactor as defined in Section 2 (f) of these Regulations, Certification as to the name,
address, occupation, Office or business address (office/business) and TIN of his benefactor;

C. C. If employed, a copy of his withholding tax statement (BIR Form W-2) for the preceding taxable year;

c. 1 A senior citizen who derives taxable (fixed) compensation income from only one employer in an
amount not exceeding P60,000 per annum shall be exempt from income tax and consequently from the
withholding tax prescribed under Section 72 Chapter 10, Title II of the National Internal Code, as
amended.
D. D. If self-employed, (i.e., practice of profession, or in business as single proprietorship) a copy of his
income tax return (ITR) for the preceding taxable year together with the annual license or permit issued
by the city or municipality where he has his principal place of business, supported by a copy of his
declaration of sales or income.
d.1 A senior citizen who derives taxable compensation income from two (2) or more employers, or who
receives mixed income from employment and from business shall still file an income tax return.

The RDO concerned shall transmit his verification report/recommendation to the said Regional Director,
as duly authorized representative of the Commissioner, for issuance of the certificate of income tax exemption to
the senior citizen.
For purposes of applying for the OSCA ID Card, the duly stamped income tax return and or the BIR
Certification shall be honored.
Sec. 6. TAXABILITY OF SENIOR CITIZENS TO OTHER INTERNAL REVENUE TAXES.
a. a. A senior citizen whose annual taxable income exceeds the poverty level of P60,000 or such
amount as may thereafter be determined by the NEDA for a certain taxable year shall be liable to the
individual income tax in the full amount thereof on his taxable income net of allowable deductions.

b. b. Regardless of the amount of taxable income, a senior citizen who derives income from selfemployment, business and practice of profession shall be subject to other internal revenue taxes
which include but are not limited to the value added tax, caterers tax, documentary stamp tax,
overseas communications tax, excise taxes, and other percentage taxes. He shall therefore, file the
corresponding business tax returns in accordance with existing laws, rules and regulations.

c.

c. He shall be subject to the 20% final withholding tax on, interest income from Philippine Currency
bank deposit, yield and other monetary benefit from deposit substitutes, trust fund and similar
arrangements; royalties, prizes (except prizes amounting to P3,000 or less which shall be subject to
income tax at the rates prescribed under Section 21, paragraph (a) or (f), NIRC) as the case may be,
and winnings (except Philippine Charity Sweeptakes winnings).

d. d. Capital gains from sales of shares of stock (Sec. 21 (d), NIRC).

e. e. Capital gains from sales of real property (Sec. 21 (e), NIRC).
Sec. 7. BASIC PERSONAL EXEMPTION ONLY FOR BENEFACTOR -.
A qualified senior citizen living with and taken cared of by a benefactor whether related to him or not, shall
be treated as a dependent and his benefactor shall be entitled to the basic

personal exemption of P12,000 as head of the family, as defined in Section 2 (e) of these regulations.

For purposes of claiming personal exemptions as head of family with dependent senior citizen, the
identification card number issued by the OSCA shall be indicated in the ITR to be filed by the benefactor. The
senior citizen shall indicate in a certification to be submitted to the RDO and the OSCA his benefactor who will be
granted the exclusive right to claim him as dependent for income tax purposes.

Caring for a dependent senior citizen shall not, however, entitle the benefactor to claim the additional
exemption allowable to a married individual or head of family with qualified dependent children under Sec. 29 (1)
(2) of the NIRC, as amended.
Sec. 8. REPEALING CLAUSE. All existing rules, regulations and other issuances or portions thereof
inconsistent with the provisions of these regulations are hereby modified, repealed or revoked accordingly.

Sec. 9. EFFECTIVITY. These regulations shall take effect fifteen (15) days after publication in the
Official Gazette or newspaper of general circulation whichever comes first and shall apply to income earned
beginning January 1, 1992.

(Sgd.) ERNESTO LEUNG

Acting Secretary of Finance
RECOMMENDED BY:
(Sgd.) LIWAYWAY VINZONS-CHATO
Commissioner of Internal Revenue