Magna Carta for PWD

1. MAGNA CARTA FOR PERSONS WITH
DISABILITY (PWD)
(Republic Act No. 7277, as amended by RA
No. 9442, 10524, 10754, 11228)

2. DEFINITION OF TERMS
(Sec. 4, RA 7277 and IRR of RA 7277)
• (a). Disabled Persons are those suffering from restriction of
different abilities, as a result of a mental, physical or sensory
impairment, to perform an activity in the manner or within
the range considered normal for a human being;
• >Abandoned disabled person is one who has no proper
parental care or
guardianship, or whose parents or guardians have deserted
him for a period of at least six
continuous months.
• >Abused disabled person is one who has been maltreated
raped, or seduced, exploited and overworked or made to
work under conditions not conductive to good health. He/She
is made to be in the street or public places, and is exposed to
moral danger.

3. • Learning Disabled are persons who, although normal in
sensory, emotional and intellectual abilities, exhibit disorders
in perception, listening, thinking, reading, writing, spelling,
and arithmetic.
• Marginalized Disabled Persons refer to disabled persons who
lack access to rehabilitative services and opportunities to be
able to participate fully in socio-economic activities and who
have no means of livelihood or whose incomes fall below the
poverty threshold.
• Neglected disabled person is one whose basic needs have
been deliberately unattended or inadequately attended. As a
result, the disabled person is either malnourished, ill clad or
without proper shelter.
• Disabled Worker means a worker whose earning capacity is
impaired by mental, physical or sensory deficiency or injury.

4. • Disabled Gifted are persons who demonstrate superior
performance capabilities in intellectual, creative, specific
academic areas, leadership, or in the arts in spite of
physical, sensory or
psychosocial disabilities.
• Qualified Individual with a Disability shall mean an
individual with a disability who, with or without
reasonable accommodations, can perform the essential
functions of the employment position that such
individual holds or desires. However, consideration shall
be given to the employer’s judgement as to what
functions of a job are essential, and if an employer has
prepared a written description before advertising or
interviewing applicants for the job, this description shall
be considered evidence of the essential functions of the
job;

5. • Impairment is any loss, diminution or
aberration of psychological, physiological, or
anatomical structure or function.
• Disability shall mean (1) a physical or mental
impairment that substantially limits one or
more psychological, physiological or
anatomical function of an individual or
activities of such individual; (2) a record of
such an impairment; or (3) being regarded as
having such an impairment;

6. • Mental Disability is a disability resulting from
organic brain syndromes (example: mental
retardation, acquired lesions of the central
nervous system, demenia) and mental illnesses
(psychotic and non-psychotic disorders).
• Persons with Autism are persons with
developmental disability, having onset before 30
months of age, which
is marked by disturbance in development,
language and relationships with persons,
activities and
objects.

7. • Persons with Behavioral Problems are those
who cannot adjust to the socially accepted
norms of behavior and, consequently, disrupt
their academic progress, the learning efforts
of their classmates, and interpersonal
relations. Their emotional and social
development is so seriously impaired that
they cannot benefit from instruction in an
ordinary class.
• Persons with Hearing Impairment are those
with auditory disabilities ranging from mild to
profound hearing loss..

8. • Persons with Mental Retardation are those
with significant sub-average general
intellectual functioning which originates
during the developmental period, existing
concurrently with deficits in adaptive behavior
like maturation, learning and social
adjustment.
• Persons with Visual Impairment are those
with visual disabilities ranging from partial to
total loss of vision.

9. • Handicap refers to disadvantage for a given individual,
resulting from an impairment or a disability, that limits or
prevents the function or activity, that is considered normal
given the age and sex of the individual.
• Handicapped is a disadvantaged for a given individual,
resulting from an impairment or a disability, that limits or
prevents the function or activity, that is considered normal
given the age and sex of the handicapped individual.
• Multi-handicapped are persons with more than one disability
such as those with mental retardation-blindness mental
retardation-orthopedic handicap, deafness-blindness and
others.
• Orthopedically Handicapped are persons whose impairment
interferes either permanently or
temporarily, with the normal functioning of the joints,
muscles or limbs.

10. TAX INCENTIVES
(Sec. 42, RA 7277)
• (a) Any donation, bequest, subsidy or financial
aid which may be made to government agencies
engaged in the rehabilitation of disabled persons
and organizations of disabled persons shall be
exempt form the donor’s tax subject to the
provisions of Section 94 of the National Internal
Revenue Code (NIRC), as amended and shall be
allowed as deduction from the donor’s gross
income for purposes of computing the taxable
income subject to the provisions of Section 29 (h)
of the Code.

11. • (b). Donations from foreign countries shall be
exempt from taxes and duties on importation
subject to the provisions of Section 105 of the
Tariff and Customs Code of the Philippines, as
amended, Section 103 of the NIRC, as
amended and other relevant laws and
international agreements.

12. • (c). Local manufacturing of technical aids and
appliances used by disabled persons shall be
considered as a preferred area of investment
subject to the provisions of Executive Order
No. 226 otherwise known as the Omnibus
Investments Code of 1987’•and, as such, shall
enjoy the rights, privileges and incentives as
provided in said Code such as, but not limited,
to the following:

13. • 1). repatriation of investments;
• 2). remittance of earnings;
• 3). remittance of payments on
foreign contracts;
• 4). freedom from expropriations;
• 5). freedom from requisition of
investment;
• 6). income tax holiday;
• 7). additional deduction for labor
expense;
• 8). tax and duty exemption on
imported capital equipment;
• 9). tax credit on domestic capital
equipment;
• 10). exemption from contractor’s
tax;
• 11). simplification of customs
procedures;
• 12). unrestricted use of consigned
equipment;
• 13). employment of foreign
nationals;
• 14). tax credits for taxes and duties
on raw materials;
• 15). access to bonded
manufacturing/trading warehouse
system;
• 16). exemption from taxes and
duties on imported spare parts;
and
• 17). Exemption from wharfage
dues and any export tax, duty,
impost and free.

14. TAX INCENTIVES
(Sec.6.12, IRR of RA 9442)
Classification Status Pasic Personal
Exemption (BPE)
Additional Personal
Exemption (APE)
Single Individual Head of Family P25,000.00 none
Married Individual
with Child/Children
With Disability
Married P32,000.00 P8,000.00 per
qualified dependent
(not exceeding four)
Solo Parent (single
or legally separated
with child with
disability)
Head of Family P25,000.00 P8,000.00 per
qualified dependent
(not exceeding four)
Grandparents
- not legally
separated or widow
or widower
- legally separated
or widow or
widower
Married
Head of Family
P32,000.00
P25,000.00
Cannot avail of the
additional
exemption enjoyed
by married
individual or solo
parent

15. • Individuals or nongovernmental institutions
establishing homes, residential communities
or retirement villages solely to suit the needs
and requirements of persons with disability
shall be entitled to the following:
• (i) Realty tax holiday for the first five years of
operation; and
• (ii) Priority in the building and/or
maintenance of provincial or municipal roads
leading to the aforesaid home, residential
community or retirement village.

16. • The establishments granting 20% Discount to
persons with disability may claim the discounts as
tax deductions based on the net 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, and
• that the total amount of the claimed tax
deduction net of value-added tax, 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, as amended.

17. Prohibitions on Availment of Double
Discounts
• The privileges mentioned in the foregoing
shall not be claimed if the persons with
disability claims a higher discount as may be
granted by the commercial establishment
and/or under other existing laws or in
combination with other discount program/s.

18. PENAL CLAUSE
(Sec. 46, RA 7277 as amended)
• (a) Any person who violates any provision of this Act shall
suffer the following penalties:
• (1) For the first violation, a fine of not less than Fifty
Thousand pesos (P50,000.00) but not exceeding One
hundred thousand pesos (P100,000.00) or imprisonment
of not less than six months but not more than two years,
or both at the discretion of the court; and
• (2) For any subsequent violation, a fine of not less than
One hundred thousand pesos (P100,000.00) but not
exceeding Two hundred thousand pesos (P200,000.00) or
imprisonment for not less than two years but not more
than six years, or both at the discretion of the court.

19. • (b) Any person who abuses the privileges granted herein
shall be punished with imprisonment of not less than six
months or a fine of not less than Five thousand pesos
(P5,000.00), but not more than Fifty thousand pesos
(P50,000.00), or both, at the discretion of the court.
• (c) If the violator is a corporation, organization or any
similar entity, the officials thereof directly involved shall
be liable therefore.
• (d) If the violator is an alien or a foreigner, he shall be
deported immediately after service of sentence without
further deportation proceedings.
• Upon filing of an appropriate complaint, and after due
notice and hearing, the proper authorities may also cause
the cancellation or revocation of the business permit,
permit to operate, franchise and other similar privileges
granted to any business entity that fails to abide by the
provisions of this Act.”