Policies and Guidelines Governing the Implementation of Republic Act No. 9994, Expanded Senior Citizens Act of 2010

June 21, 2011 DILG MEMORANDUM CIRCULAR NO. 088-11 TO : All Provincial Governors, City Mayors, Municipal Mayors, Presiding Officers of the Sangguniang Panlalawigan, Sangguniang Panlungsod and Sangguniang Bayan, Punong Barangays, Regional Governor of the ARMM and DILG Regional Directors SUBJECT : Policies and Guidelines Governing the Implementation of Republic Act No. 9994, Expanded Senior Citizens Act of 2010 Prefatory Statement Republic Act No. 9994, the Expanded Senior Citizens Act of 2010, entitles senior citizens to a twenty percent (20%) discount and an exemption from the Value Added Tax (VAT) for the exclusive use, enjoyment and availment of the senior citizens in the purchase of any goods and services enumerated in this Act. Nonetheless, a senior citizen may be subjected to VAT or other Percentage Taxes, if he or she is self-employed, or engaged in business or practice of profession, and his or her gross annual sales and/or receipts exceeds Php1,500,000.00 or such amount to which this may be adjusted pursuant to Section 109 (1) (V) of the Tax Code. Otherwise, he or she shall be subjected to the 3% Percentage Tax pursuant to Section 9 (1) of Revenue Regulations No. 7-2010. Policies and Guidelines Pursuant to the Implementing Rules and Regulations of RA 9994, the following policies and guidelines are hereby promulgated: A. Privileges and Benefits of Qualified Senior Citizens Privileges and benefits include the following: 1. On Hotels and Similar Lodging Establishments, the discount shall be for room accommodation and other amenities offered by the establishment such as, but not limited to, hostel-based parlors and barbershops, restaurants, massage parlor, spa, sauna bath, aromatherapy rooms, workout gyms, swimming pools, jucuzzis, KTV bars, internet facilities, food, drinks and other services offered. The term "hotel" shall include beach and mountain resorts; IcaHCS 2. Restaurants, the discount shall be for the purchased of food, drinks dessert, and other consumable items served by the establishments offered for the consumption of the general public. For dine-in services, the privileges must be availed of by the senior citizen. No proxies or authorization will be honored; 3. Food, drinks and other consumable items purchased by the senior citizen shall be processed separately as an independent transaction from non-eligible companions to ensure that these are for the senior citizen's exclusive consumption and to enable computation of the 20% discount and the exemption from VAT, which only the senior citizen is entitled to; 4. The 20% discount shall apply to "Take-Out/Take Home/Drive-Thru" orders (excluding bulk orders) as long as it is the senior citizens themselves who are present and personally ordering, and can show a valid senior citizen ID card; 5. For "Delivery Orders" (excluding bulk orders) the 20% discount shall likewise apply, subject to the following conditions: a. Senior Citizens ID number must be given while making the order over the telephone; and b. Senior Citizens ID must also be presented upon delivery to verify the identity of the senior citizen. Delivery fee, charged separately, is not covered by the discount, and is subject to tax; and 6. Funeral and Burial Services, the beneficiary or any person who will shoulder the funeral and burial expenses of the deceased senior citizen, shall claim the discount for the deceased senior citizen upon presentation of death certificate. Such expenses shall cover the purchase of casket or urn, embalming, hospital morgue, transport of the body to the intended burial site from place of origin, excluding obituary publication and the cost of the memorial lot. B. The Office for Senior Citizens Affairs (OSCA) An Office for Senior Citizens Affairs (OSCA) shall be established in all cities and municipalities. A senior citizen shall be appointed by the City or Municipal Mayor as head of OSCA with the following qualifications: A Filipino citizen and resident of the city or municipality for at least one (1) year; EDIHSC A registered voter of the concerned city or municipality; Must be physically and mentally fit and capable of performing the tasks of OSCA Head; A bonafide member of a duly registered senior citizens organization with a track record of at least three (3) consecutive years; With good moral character; and At least a high school graduate. Selection of OSCA Head The Office of the Mayor shall choose the head of OSCA from the list of three (3) nominees chosen or recommended by and among a general assembly of DSWD-accredited or LGU-registered senior citizens organizations in the city or municipality. Term of Office The Head of the OSCA shall be appointed for a term of three (3) years without reappointment, and without prejudice to an extension not exceeding three (3) months, if exigency so requires. The OSCA Head shall serve the interest of the senior citizens and shall not be removed or replaced except for reasons of death, permanent disability, or ineffective performance of his duties, to the detriment of fellow senior citizens, in a resolution issued by the general assembly. In case of death or permanent disability, the remaining term shall be served by the new appointee who has undergone the selection process. The new Head may be reappointed if he or she has not served one-half of the full term. The Office of the Mayor shall exercise supervision over the Municipal Social Welfare and Development Officer (C/MSWDO) and shall provide the necessary technical assistance for the OSCA. Functions of OSCA To plan, develop, implement, consolidate, and monitor the annual programs project or activities in pursuance of the objectives of the Act and its Rules in consultation with the City or Municipal Social Welfare and Development Officer; To draw up a list of available and required services which can be provided by the registered federations and associations of senior citizens; To maintain and update, on a quarterly basis, the list of senior citizens and to issue the national designed identification cards; To serve as a general information and liaison center concerning the needs of the senior citizens; To monitor compliance of the provisions of the Act, and to report to the concerned City or Municipal Mayor any person, natural or juridical, establishments, business, entity, institution or agency found violating any provision of the Act and its Rules, particularly on the grant of discounts and privileges to senior citizens; HASTCa To facilitate the creation of a city or municipal coordinating and monitoring board consisting of the OSCA Head, the City or Municipal Social Welfare and Development Officer, and the Presidents of the concerned and duly registered senior citizens organizations to deliberate among others, the complaints of the senior citizens; To assist the senior citizens in filing complaints or charges against any person, natural or juridical, establishments, institutions or agencies refusing to comply with the privileges provided under the Act before the Department of Justice, the Provincial Prosecutors' Office, the Regional or the Municipal Trial Court in the cities, or the Municipal Circuit Trial Court; To assist and coordinate with the concerned person, natural or juridical, establishments, institution or agencies in investigating fraudulent practices and abuses concerning the discounts and privileges exclusively granted to senior citizens; and To establish linkages with other accredited NGOs, people's organizations, and the barangays in their respective areas. Operations and Maintenance of OSCA The necessary appropriations for the operation and maintenance of OSCA shall be provided by the local government units concerned including an office space. C. Government Assistance Social safety assistance intended to cushion the effects of economic shocks, disasters and calamities shall be available for senior citizens. This shall include, but not limited to, food, medicines, and financial assistance for domicile repair, and shall be sourced from the disaster or calamity funds of LGU where the senior citizens reside. Relative to this, Section 1 of Republic Act No. 8185, An Act Amending Section 324 (d) of the Local Government Code, stipulates that five percent (5%) of the estimated revenue from regular sources of an LGU shall be set aside as an annual lump sum appropriations for relief, rehabilitation, reconstruction and other works and services in connection with calamities which may occur during the budget year, subject to the following conditions: That the area or portion thereof had been declared under the state of calamity by the sanggunian concerned through a Sanggunian Resolution or by a Presidential Declaration of a National Calamity (DILG Clarificatory Guidelines on the Use of the 5% Local Calamity Fund);and That the Local Chief Executive has been authorized, through a sanggunian resolution, to extend financial assistance to LGUs affected by a calamity, chargeable against the Calamity Fund (Section 22 (c), RA No. 7160 and Section 5 (b.2) IRR of RA No. 8185). All DILG Regional Directors and the Regional Governor of the ARMM are hereby directed to cause the immediate and widest dissemination of this Memorandum Circular and ensure that this Circular is effectively communicated to all concerned local authorities. For the information and guidance of all concerned. ECaITc (SGD.) JESSE M. ROBREDO Secretary