Tax incentives for employers to provide persons with
disability, equal opportunity for employment and equal remuneration for work of
equal value. Towards this end, the State shall facilitate access of persons
with disability to labor market information, capacity building programs, and
wage employment.
1. Private entities that employ qualified disabled
persons either as regular employee, apprentice
or learner shall be entitled to an additional
deduction from their gross income for the taxable
year, in an amount equivalent to 25% of the total
amount of paid as salaries/wages to disabled
persons, over and above the total allowable
ordinary and necessary business deductions for
10 employees 10 PWD employees
Annual Salary Annual
Salary
180,000 X 10 =
1,800,000.00 180,000 X 10 =
1,800,000.00
Deduction 100% Deduction 125%
Salary Expense 1,800,0000.00 Salary Expense 2,250,0000.00
Addition Salary deduction 450,000.00
2. Private entities that improve of modify their
physical facilities in order to provide reasonable accommodation for PWDs shall
be entitled to an additional deduction
from their net income, equivalent to fifty percent (50%) of direct cost of the
improvements or modifications. This Section, however, does not apply to
improvements or modifications of facilities required under B.P Blg. 344
Improvements Improvements
beyond the required modifications under B.P 344
1,000,000.00 1,000,000.00
Deduction 100% Deduction 150%
Expense 1,000,0000.00 Expense 1,500,0000.00
Additional deduction 500,000.00
Section 7. Implementation of One Percent (1%)
7.1 For Government Agencies
At least one percent (1%) of all regular and non-regular
positions in all government agencies shall be reserved for persons with
disability.
Should there be fraction in coming up with the sum of at
least one percent (1%) of the total plantilla position in a government agency,
the same shall be considered as one (1) position reserved for persons with
disability.
Government agencies that are currently employing PWDs with
at least 1% of the total positions shall be considered compliant with this IRR.
However, nothing in this rule shall prevent compliant government agencies from
hiring more PWDs, nor shall allow them to diminish the number of currently
employed and qualified persons with disability.
However, in cases where no qualified PWD applies for
the available position, the concerned agency has the option to hire non-PWD
applicant.
We can help PWD to exercise their right to be employed
reserved for persons with disability.
7.2 For Private Corporations
Private corporations with more than one hundred (100)
employees are encouraged to reserved at least one percent (1%) of all positions
for PWDs. However, nothing in this rule shall prevent private corporations with
less than 100 employees from hiring PWDs.
3
Steps to avail the tax incentives
a.Submit a request letter to DOLE that your company is requesting a Certification of
Employment of PWDs. Dole representative will visit your company to check if the
working environment is PWD friendly before they can issue the Certification of
Employment of PWDs
Certification of Employment of
PWDs (TI-Form 1)
This form shall serve as proof for establishments
employing PWDs and shall be
submitted
to the Bureau of Internal Revenue (BIR) for availment of tax incentive.
b.Employment
Report (TI-Form 2)
At
the end of the year, the employer shall submit to the DOLE Employment
Report.
Sample
Employment Report.
Sample
Employment Report.
2.
BIR RR No. 8-93
a.
File the Certification of Employment of
PWDs (TI-Form 1) at the BIR Assessment division.
Attached a letter that your are
availing the 125% Salary deduction based on RR 8-93.
b.
File the
certified schedule of actual expense for improvement of facilities to accommodate disabled persons.
c.
Certification by the local government building
inspector and the NCWP, Provided that the additional deduction allowed shall
not apply to improvement of facilities required under Bp. No. 344
3. Audited Financial Statement
Your auditor should also disclose the basis of
125% pwd employee salary and 150% improvement expense is based on RR8-93.
To view all the applicable laws on PWD employment, Please click the link below
To view all the applicable laws on PWD employment, Please click the link below
Employers have
recognized for some time that it's smart business to have a diverse workforce -
one in which many views are represented and everyone's talents are valued.
Well, disability is part of diversity. -
Thomas Perez
