DATE : April 25, 2020

TO : ALL CONCERNED
RE : GUIDELINES FOR SENIOR CITIZEN DISCOUNT

Please find below guidelines for Senior Citizen Discount in compliance with Republic
Act No. 9994 (The Expanded Senior Citizen Act) and Its Implementing Rules and
Regulations:

APPLICABLE LEGAL BASIS:

“RESTAURANT - refers to any establishment duly

licensed and with business permits issued by the local
government units, offering to the public, regular and
special meals or menu, fast food, cooked food and short
orders. Such eating-places may also serve coffee,
beverages and drinks. This covers Quick-Service
Restaurants or QSRs, Casual Dining and Fine Dining
Restaurants as defined below:

a) QUICK SERVICE RESTAURANTS, or fast-food

chains, refer to restaurants with multiple branches that
have menu boards where food item choices are listed.
Customers place their orders with the cashier and pay
right after their orders are taken.

b) CASUAL and FINE DINING RESTAURANTS - are

restaurants where customers are seated first before their
food orders are taken by waiters. They are served at their
tables and pay only after they have consumed their
meals.”

PRIVILEGE/ENTITLEMENT:

Article 7. Twenty Percent (20%) Discount and VAT

Exemption - The senior citizens shall be entitled to the grant
of twenty percent (20%) discount and to an exemption from
the value-added tax (VAT), IF APPLICABLE, on the sale of
the goods and services covered by Section 1 to 6 of this
Article, from all establishments for the exclusive use and
enjoyment or availment of senior citizens.

RESTAURANTS - The discount shall be for the purchase

of food, drinks, dessert, and other consumable items
served by the establishments offered for the consumption
of the general public.
For Dine-in services under paragraphs (a) and (b) of
Section 3, and Section 4, paragraph 2 of Article 7, the
privilege must be personally availed of by the senior
citizen as defined under these Rules, and no proxies or
authorization in favor of another person who is not a
senior citizen will be honored.

(d) Consistent with the intent of the Act, the phrase

"exclusive use and enjoyment" of the senior citizen shall
mean "for the senior citizen's personal consumption"
only. As such, the 20% senior citizen discount shall not
apply to "children's meals" which are primarily prepared
and intentionally marketed for children. Similarly, the
20% senior citizen discount shall not apply to "pre-
contracted" party packages or bulk orders.

(e) Food, drinks and other consumable items provided in

Section 3 (a) and (b), and Section 4, paragraph 2 of
Article 7 purchased by the senior citizen shall be
processed separately as an independent transaction from
his/her non-eligible companions to ensure that it is for
his/her exclusive consumption and to enable
computation of the 205 discount and the exemption from
the Value Added Tax (VAT), which only the senior citizen
is entitled to.

However, if the group of diners is composed entirely of

senior citizens, all of whom present valid senior citizens
IDs, each shall be entitled to a 20% discount and
exemption from Value Added Tax.

(f) The 20% discount shall apply to Take-Out/Take-

Home/Drive-Thru orders as long as it is the senior citizen
himself/herself who is present and personally ordering,
and he/she can show a valid senior citizen ID card.

(g) For Delivery Orders, the 20% discount shall likewise

apply subject to certain conditions; i.e. senior citizen ID
card number must be given while making the order over
the telephone; the senior citizen ID card must also be
presented upon delivery to verify the identity of the senior
citizen entitled to the 20% discount.

(h) For the above-mentioned transactions under

paragraphs (f) and (g) of Section 3 of Article 7, the Most
Expensive Meal Combination (MEMC) shall apply to food
purchases by senior citizens. The MEMC is an amount
corresponding to the combination of the most expensive
and biggest single-serving meal with beverage served in a
 quick service restaurant, is deemed flexible and is
adjusted accordingly by food establishments to estimate a
single food purchase for an individual senior citizen.”

(The above are quoted from the provisions of the IMPLEMENTING RULES AND
REGULATIONS OF REPUBLIC ACT NO. 9994, ALSO KNOWN AS THE "EXPANDED SENIOR
CITIZENS ACT OF 2010," AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES
TO SENIOR CITIZENS, FURTHER AMENDING REPUBLIC ACT NO. 7432 OF 1992 AS
AMENDED BY REPUBLIC ACT NO. 9257 OF 2003)

BASIC DISCUSSION:
1. Called-in or phoned-in orders are delivery orders entitled to 20% discount
and VAT exemption.

Hence, they are likewise subject to certain conditions:

A. Senior citizen Name and ID card number must be given while making the
order over the telephone:
B. The senior citizen ID card must also be presented upon delivery to verify the
identity of the senior citizen entitled to the 20% discount and VAT
exemption.

2. Called-in or phoned-in orders of Grouped Meals with Senior Citizen

2.1. Determine the number of senior citizens composing the group.

2.2. The 20% discount and VAT exemption shall be computed based on the
value of the food attributable to the qualified senior citizens.
2.3. Likewise, the senior citizen name/s and ID card number/s must be given
while making the order over the telephone
2.4. Senior citizen ID card/s must be presented upon delivery to verify the
identity of the senior citizen/s entitled to the 20% discount and VAT
exemption.

3. Delivery fees/charges for delivery orders for Senior Citizen

Distinction must be made:

A. If the delivery fee/charge is not billed separately, it is subject to the

20% discount.

B. However, if such delivery fee/charge is billed separately, it is not

entitled to the 20% discount and is subject to VAT.

4. Purchase of Slice of Cake

If a Senior Citizen purchases a slice of cake or a personal serving of cake, he

shall be entitled to the 20% discount.
5. Purchase of Whole Cake

A purchase of a whole cake may be considered as a purchase of a “group

meal or meal for sharing”.

For instance, if the whole cake purchased is good for five (5) persons, and the
group of diners is composed of five (5) Senior Citizens, each with a valid Senior
Citizen’s ID card, then they shall be entitled to the 20% discount. 

If the group of diners is composed of Senior Citizens, but not all have their valid
Senior Citizen’s ID card, or composed of Senior Citizens and Non-Senior
Citizens, the value of the cake attributable to the qualified Senior Citizen/s
shall be computed in accordance with the formula above.

6. Personal Serving of Pizza

If a Senior Citizen purchases a personal serving of pizza, he shall be entitled to
the 20% discount and VAT exemption.
7. Purchase of Double / Family Pizza

Pizza orders may be considered as purchases of “group meal or meal for

sharing”.

For instance, if the pizza order is good for three (3) persons and the group of
diners is composed of three (3) Senior Citizens, each with a valid Senior
Citizen’s ID card, then they shall be entitled to the 20% discount and VAT
exemption or the entire food purchase shall be entitled to the 20% discount and
VAT exemption.

If the group of diners is composed of Senior Citizens, but not all have their valid
Senior Citizen’s ID cars, or composed of Senior Citizens and Non-Senior
Citizens, the value of the pizza attributable to the qualified Senior Citizen/s
shall be computed in accordance with the formula set forth above.

8. Purchase of Alcoholic Beverages

A Senior Citizen may still avail of the 20% discount and VAT exemption on the
purchase of an alcoholic drink but the discount shall be limited only to a
single serving of an alcoholic beverage.

9. Condiments and Side Products

Condiments and Side Products fall within the ambit of “other consumable items
served by the establishments” therefore it is subject to 20% Senior Citizen
Discount and Vat Exempt.
 10. Purchase of goods and services which are on promotional discount,
e.g., discounted sale upon use of a membership/privilege card
In the purchase of goods and services which are on promotional discount, the
Senior Citizen shall avail of either the promotional discount or the 20%
discount, whichever is higher.
However, the discount that must be given to the Senior Citizen shall in no case
be less than 20%.
If the Senior Citizen used his privilege card/promotional discount which is
higher than the 20% Senior Citizen discount, the sale is still exempt from VAT.

11. Set Meal

Set Meal, provided that the meal shall be limited to a single-serving meal
with beverage purchased by a Senior Citizen shall be entitled to 20%
discount and vat exempt.
In case the set meal is not limited to a single serving and is shared with Senior
or Non-Senior Citizen, the value of food purchase attributable to Senior Citizen
shall be computed in accordance with the formula above (Group Meal).
12. Most Expensive Meal Combination (MEMC)

The MEMC is an amount corresponding to the combination of the most

expensive and biggest single-serving meal with beverage served in a quick
service restaurant.

The MEMC is deemed flexible and is adjusted accordingly to estimate a single

food purchase for an individual senior citizen.

For instance, if the order consists of five (5) Set Meals, deduct the 20%
discount from the most expensive and biggest single-serving among the
five (5) ordered set meals.

For your guidance.

Thank you.