News and Updates

BIR issued RR No. 7-2026, which amends RR No. 7-2010 to allow and regulate the sharing of the financial burden of mandatory senior citizen discounts among retailers, manufacturers, distributors and wholesalers, particularly in the pharmaceutical industry.

Burden sharing agreement between retailers and wholesalers/distributors/manufacturers is permitted for the 20% senior citizen discount. Each claimant of deduction is limited to its corresponding share under the burden sharing agreement.

This is only applicable if the establishments chooses Itemized deduction. If establishments is using the Optional Standard Deduction (OSD), it cannot separately claim the senior citizen discount as an additional deduction.

Click Here to View the copy of the RR 7-2026  

posted October 15,2026 at 7:40 AM | by Torre, Sobremonte & Associates Company