For solo parents, it can be challenging to manage finances and provide for their family’s needs. That’s why with the Expanded Solo Parents Welfare Act, they are now provided some relief as they navigate the demands of parenthood.
On January 18, 2023, the Bureau of Internal Revenue (BIR) has released the Revenue Regulations (RR) No. 1-2023 prescribing the guidelines for the ten percent (10%) discount and Value Added Tax (VAT) exemption on the sale of goods to a qualified Solo Parent (as defined by Republic Act 8972, as amended by the Republic Act 11861 or the Expanded Solo Parents Welfare Act).
To avail of the 10% discount and VAT exemption, all of the following conditions must be met:
- The Solo Parent has a child/children (as defined by RA No. 11861) with the age of 6 years or under; and
- The Solo Parent is earning less than P250,000 annually.
The following goods purchased are as identified in the Act from drug stores, pharmacies, grocery stores, and similar establishments, and subject to the guidelines that shall be issued by the Department of Health (DOH), in coordination with the Food and Drug Administration (FDA), Philhealth and the Department of Interior and Local Government (DILG):
- Baby’s Milk;
- Food Supplements and Micronutrient Supplements;
- Sanitary Diapers;
- Medicines;
- Vaccines; and
- Other Medical Supplements.
In addition, the Solo Parent shall present his/her Solo Parent Identification Card (SPIC) and Solo Parent Booklet to avail of the 10% discount and VAT exemption. The SPIC is issued to the Solo Parent as his/her competent proof of identification and the primary evidence of his/her status as a Solo Parent to enable him to avail of the benefits under the Act. The SPIC together with the booklet are issued by the Solo Parent Office (SPO) of the province or city, or the Solo Parent Division (SPD) of the municipality, and shall be valid for one (1) year.
In line with this, all establishments supplying any of the goods identified in the Act may claim the discounts granted to Solo Parents as a tax deduction and shall be treated as ordinary and necessary expense deductible from the gross income of a seller falling under the category of itemized deductions, and can only be claimed if the seller does not opt for the Optional Standard Deduction during the taxable quarter or year.
These benefits are explained further in the BIR website, which can be viewed in this link:
