BIR implements tax exemptions for solo parents

MANILA, Philippines — The Bureau of Internal Revenue (BIR) will begin implementing discounts and value-added tax exemption (VAT) for solo parents, as mandated by the Expanded Solo Parents Welfare Act.

In a revenue regulation, the BIR issued the guidelines for the implementation of the 10 percent discount and VAT exemption under the law, which took effect in June last year.

Solo parents that are qualified are those with children aged six and below and are earning less than P250,000 annually.

The BIR said the discount and exemption would apply to the purchase of various goods in drug stores, pharmacies, grocery stores, and similar establishments.

These products include baby’s milk, food and micronutrient supplements, sanitary diapers, medicines, vaccines, and other medical supplements.

The solo parent is required to present his or her solo parent identification card and booklet to avail of the discount and VAT exemption.

Apart from the discount and VAT exemption, the law provides for a P1,000 monthly cash subsidy for solo parents earning minimum wage.

Solo parents are also entitled to priority in low-cost housing, health insurance coverage, and scholarship programs for their children.

The law also mandates the prioritization of solo parents, particularly mothers, in reentering the workforce, and their children in apprenticeship and livelihood training.

The expanded law likewise grants a yearly forfeitable and non-cumulative parental leave of not more than seven days with pay for each regularized solo parent employee.

Data showed that there are roughly 15 million solo parents in the country, 95 percent of which are women.