PWD employers get tax perks

MANILA, Philippines - Private corporations which employ persons with disabilities (PWDs) are set to receive incentives, the Bureau of Internal Revenue(BIR) said.

Under the implementing rules and regulations (IRR) of Republic Act 10524, private companies that employ PWDs as regular employee, apprentice or learner are entitled to a gross income deduction equivalent to 25 percent of the total amount paid as salaries and wages to PWDs.

RA 10524 aims to give PWDs equal opportunity for employment and equal remuneration for work of equal value. The law covers both private corporations and government agencies.

The entities must present proof as certified by the Department of Labor and Employment that the PWDs are under their employment.

PWDs must also be accredited with the Departments of Labor and Employment and Health as to their disability, skills, and qualifications.

Apart from the income deduction, additional incentives will also be given to private corporations which make their facilities PWD-friendly.

“Private entities that improve or 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 50 percent of direct cost of the improvements or modifications,” the IRR said.

This, however, does not apply to modifications of facilities which are required by Batas Pambansa 344, or the Accessibility Law.

Another key provision of the IRR is the requirement of government agencies to reserve at least one percent of all their regular and non-regular positions for PWDs.

“However, in cases where no qualified PWD applies for the available position, the concerned agency has the option to hire non-PWD applicant,” the rules said.

Private corporations with more than 100 employees are likewise “encouraged” to reserve one percent of their positions for PWDs.

The IRR requires the BIR to develop and adopt a simplified system for providing tax incentives to encourage private corporations to employ PWDs.

This will be developed with other agencies such as the Department of Labor and Employment, Department of Health, National Council on Disability Affairs, and the National Anti-Poverty Commission – Persons with Disability Sectoral Council.

All government agencies must submit an annual report on the total number of positions reserved for PWDs and the total number of appointments to the Civil Service Commission every Jan. 15.

“The said annual report shall be accompanied by certified true copies of appointments of PWDs during the year, if any,” the IRR said.