The Tax Benefits of employing Persons with Autism in the Philippines

The recently-launched ASP Career Placement Initiative, not only takes the welfare of adults with autism into consideration; but takes on the responsibility of informing employers of the non-tangible and tangible benefits of hiring workers with autism. The BIR Revenue Regulation 8-93, made effective on 29 January 1993, articulates some of the tax benefits of employing persons with autism in the Philippines.

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Private entities that employ qualified persons with autism and other disabilities as regular employees, apprentices and learners shall be entitled to an additional deduction from their gross income for the taxable year, in an amount equivalent to twenty-five percent (25%) of the total amount paid as salaries and wages to the PWD, over and above the total allowable ordinary and necessary business deductions for said salaries and wages, upon presentation of the following:

• Proof, as certified by the Department of Labor and Employment (DOLE), that qualified PWDs are under their employ during the taxable year, stating the full name, status, address and taxpayer identification number of each of such employees.
• A certification from DOLE and the Department of Health (DOH) as to the disability, skills and qualifications of the PWDs employed by such private entity.
• Evidence of actual payment of salaries and wages to the employed PWD, as well as witholding tax, if any.

The incentives of additional deductions from income shall be availed of by private entities upon filing the final income tax return for the taxable year when the salaries and wages and other expenses for direct costs of the modifications and improvements to physical facilities to accommodate qualified PWDs have been paid or incurred and attaching the following to the said return:

• Proof as certified by DOLE that disabled persons have actually been employed;
• Certification from DOLE and DOH, attesting to the disability, skill and qualification of the PWDs employed; and
• Evidence of actual payment of salaries and wages to the employed PWDs, as well as taxes withheld, if any.

For more information on how you can hire more persons with autism and other disabilities, please contact Atty. V.Cadangen, Law Division Chief, Bureau of Internal Revenue at 02-926-5536, 02-927-2511 local 7328.