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BIR will monitor establishments which do not comply with the documentation & procedural requirements under R.R. No. 5-2017 in relation to tax deductions claimed for PWD-related transactions
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. showed his support to the privileges granted to Persons with Disability (PWD) and his strong stance against fraudulent practices involving fake PWD identification cards (IDs) during the press conference held last March 21, 2025 with the Department of Social Welfare and Development (DSWD) and the National Council on Disability Affairs (NCDA). These privileges are crucial for empowering PWDs, ensuring their inclusion, and easing the financial burdens associated with their conditions. The BIR, in collaboration with other government agencies, remains steadfast in its commitment to uphold the integrity of tax incentives designed for PWDs.
"The BIR expresses its full support to all legitimate PWDs. All tax privileges given by law to PWDs will be fully implemented by the BIR. However, the BIR will be strict with businesses which do not even follow the basic documentation and procedural requirements under Revenue Regulation No. 5-2017," Commissioner Lumagui stated.
Commissioner Lumagui also expressed the agency's serious concern over the proliferation of fake PWD IDs, labeling this malpractice as a tax evasion scheme which causes the government significant revenue losses. Thus, the BIR is initiating a nationwide crackdown to identify and prosecute offenders involved in these illicit practices. Personalities found guilty of producing, selling, or using fake PWD IDs shall face criminal charges and the corresponding fines and imprisonment penalties.
"The BIR also supports the unified PWD ID and database program of the DSWD. Through this program, the BIR can check whether or not the tax deductions submitted by businesses come from legitimate PWD transactions. A data sharing agreement between the relevant government agencies can provide a streamlined approach to fighting the tax leakage caused by fake PWD IDs," Commissioner Lumagui stated.
Under Republic Act No. 7277, as amended by RA Nos. 9442 and 10754, establishments providing the mandated 20% discount and value-added tax (VAT) exemption to qualified PWDs are entitled to claim these discounts as tax deduction. To legitimately claim these deductions, establishment must adhere to the documentation and procedural requirements provided in Revenue Regulations No. 5-2017. Each sale transaction must be properly documented, reflecting the name of the PWD and their PWD ID number.
Moreover, all transactions with PWDs must be supported by appropriate documentation, including duly issued invoices reflecting the discount granted. These documents serve as evidence of compliance with tax laws and regulations. By diligently following these guidelines, establishments can effectively support the welfare of PWDs while ensuring compliance with existing tax laws, and benefiting from the allowable deductions.
"We encourage the public to report Fake PWD ID manufacturers, printers, sellers, and users. The sale and use of fake PWD IDs is not only tax evasion, it is also an act of disrespect against legitimate PWDs. A PWD ID is not some common discount card that is available to the general public. It carries a discount granted by law, for the improvement of the well-being and easing of the financial burden of PWDs," Commissioner Lumagui stated.
*Image from Rappler
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
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