The Department of Finance (DOF) has issued Revenue Regulations (RR) No. 9-2020 on the tax benefits of donations made for the purpose of battling COVID-19 pursuant to Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act.”

Finance Secretary Carlos Dominguez III explained that such tax benefits “recognize the far-reaching contributions of the private sector and other stakeholders in pursuit of the Duterte administration’s overall efforts to fight the 2019 coronavirus disease (COVID-19) pandemic as outlined in RA 11469 or the Bayanihan Act.”

RR 9-2020 provides that donations of cash, critical healthcare equipment, relief goods and the use of property for the purpose of fighting COVID-19 and made during the period of the declared state of emergency shall be exempt from donor’s tax and value-added tax (VAT), if applicable, and may be granted full deductibility against the gross income of the donor, subject to certain conditions and compliance with minimal supporting documents.

Aside from donations made to the national government and accredited non-stock, non-profit organizations, the revenue regulations widened the coverage of the tax benefits to include donations to private hospitals; non-accredited non-stock non-profit educational and/or charitable, religious, cultural or social welfare institutions; nongovernment organizations (NGOs); trust or philanthropic organizations and/or research institutions; as well as local private corporations, civic organizations and/or international organizations that actually, directly and exclusively distribute and/or transfer the donations and/or serve as conduit for accredited NGOs and/or the National Government or any non-profit entity created by any of its agencies, or to any political subdivision of the said government.

For donations to the national government and accredited non-stock, non-profit organizations that already exempt under the Tax Code, donors are required to each submit a deed of donation or certificate of donation, respectively.

For donations made for local private corporations and international organizations, donors are required to present liquidation reports, certificates of donations, proofs of purchase, and Bureau of Internal Revenue (BIR)-registered acknowledgment receipts.

The BIR further requires that donations to non-accredited non-stock, non-profit organizations may avail of the tax benefits upon the submission by the donor of liquidation reports, sworn certification stating that the donation is made for COVID-19 response, and the BIR-registered acknowledgment receipt.

The DOF and the BIR are one with the nation in finding ways to promote and protect the interests of all Filipinos and address the serious threats to public health, safety and security in the face of the COVID-19 pandemic.

These agencies said the tax benefits for donations are the government’s apt response to the support of kind-hearted and selfless individuals and entities who heed the call for “bayanihan” or sharing amid the global health crisis.

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