intrepid Posted March 20, 2017 Posted March 20, 2017 I know there are many topics on senior discounts here in the Philippines, but after reading through the different ones I could not find an answer unless I missed it. After picking up my SIL at the buss station I asked her what the cost was for her bus trip.She answered and added next year she will get a twenty percent discount after turning 60. Well, that's nice I said. This was an interesting topic to me. I'm not asking for or expecting any discount here. Don't get me wrong, I'll humbly accept any discount that I am offered. But she starting telling me where different places offer 10-20% discounts and further added that all seniors,(with a card), can go see movies for free. Just the senior. She further add that when going to the grocery store or restaurant the group will try to take along a senior to present their card and say they are paying so they can all enjoy the discount. Now that got me thinking, more about the movies. So if a large group of seniors visit the movies and continue to do this each day filling all the seats, how would the company stay in business? Then she told me something that made everything click. She said the government pays back the companies that give discounts. She thinks! So if this accurate, it explains why a government senior card must be shown for proof and makes the procedures more understandable. Does anyone know if this is true? 2 Link to comment Share on other sites More sharing options...
jpbago Posted March 20, 2017 Posted March 20, 2017 (edited) 37 minutes ago, intrepid said: Does anyone know if this is true? It is true. Well sort of. At Vikings, only the senior gets the discount, even if they are the one paying the bill, so I suspect it would be the same at the movies. With the average life expectancy of a Filipino at age 61, when the senior rate starts at age 60, the government is not worried about paying the discounts. Edited March 20, 2017 by jpbago more info (or slow thinking) 3 Link to comment Share on other sites More sharing options...
virginprune Posted March 20, 2017 Posted March 20, 2017 Filipino Senior Citizens get 10% discount on participating restaurants meals, just their own, on supermarket groceries, meds etc. The same discount applies at the cinema. They can also claim this on bus fares and internal flights. 2 Link to comment Share on other sites More sharing options...
jpbago Posted March 20, 2017 Posted March 20, 2017 19 minutes ago, virginprune said: Filipino Senior Citizens get 10% discount It is 20 % discount. http://www.gov.ph/services/senior-citizens/ Link to comment Share on other sites More sharing options...
Forum Support Mike J Posted March 20, 2017 Forum Support Posted March 20, 2017 The senior citizen discount(s) is used as an income deduction by the business giving the discount. In addition to the 20% discount, the sales to seniors are also exempt for the 12 Value Added Tax (VAT). Republic Act No. 9994 reads: “The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NICR), as amended.” 1 Link to comment Share on other sites More sharing options...
bigpearl Posted March 20, 2017 Posted March 20, 2017 Interesting, I never knew this. I always wondered how our families sari sari store makes money, how they survive given that they sell for less than the 7/11 up the road, this changes things perhaps, though I maybe wrong. Any thoughts? Cheers, Steve. 1 Link to comment Share on other sites More sharing options...
intrepid Posted March 20, 2017 Author Posted March 20, 2017 1 hour ago, Mike J said: The senior citizen discount(s) is used as an income deduction by the business giving the discount. In addition to the 20% discount, the sales to seniors are also exempt for the 12 Value Added Tax (VAT). Republic Act No. 9994 reads: “The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NICR), as amended.” Thanks Mike J. This is what I was asking. So it seems the government is not directly paying back the discounted portion. Rather, it is less tax collected in form of a tax deduction by the establishment. Starting to make since in my thick head. 2 Link to comment Share on other sites More sharing options...
Gary D Posted March 20, 2017 Posted March 20, 2017 I wonder how often a 10% discount is gien and 20% tax deductable claimed. 1 Link to comment Share on other sites More sharing options...
virginprune Posted March 20, 2017 Posted March 20, 2017 8 hours ago, jpbago said: It is 20 % discount. http://www.gov.ph/services/senior-citizens/ The seniors I know here only get 10% on most things, possibly 20% on meds. Maybe they should take it up with relevant authorities. Link to comment Share on other sites More sharing options...
Jollygoodfellow Posted March 21, 2017 Posted March 21, 2017 It boils down to this. If you're Filipino you are entitled to discounts. (its their country) If you are an alien from mars or someplace you are not. Some venues have no idea so may give you a discount. 3 Link to comment Share on other sites More sharing options...
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