Various news clippings are being published online evidencing the generosity of the private sector and the true embodiment of the word “Bayanihan” during these difficult times. Some members of the private sector have led the efforts in providing relief to the national government and other vital institutions in relation to the fight against Corona Virus Disease – 2019 (COVID-19).
As provided for under Bureau of Internal Revenue Revenue Regulations No. 09-2020 (“BIR RR No. 09-2020”) dated 06 April 2020, donations or gifts which are given for the sole and exclusive purpose of combatting COVID-19 during the period of the state of national emergency under R.A. 11469, shall be considered fully deductible against the gross income of the donor (whether an individual or a juridical entity).
What are the donations/gifts which are fully deductible to the gross income of the donor?
The following are the donations which are fully deductible:
- Cash donations;
- Donations of all critical or needed healthcare equipment or supplies as enumerated above;
- Relief goods such as, but not limited to, food packs (rice, canned goods, noodles, etc.) and water; and
- Use of property, whether real or personal (shuttle service, use of lots/buildings).
To whom should the donations or gifts be given in order to be fully deductible from the gross income of the donor?
The donees recognized under BIR RR No. 09-2020 are the following:
- National Government or any entity created by any of its agencies (including public hospitals) which is not conducted for profit, or to any political subdivision of the said Government, including fully-owned government corporations;
- Accredited non-stock, non-profit educations and/or charitable, religious, cultural, or social welfare corporations, institutions, foundation, non-government organization, trust or philanthropic organizations, or research institutions or organizations;
- Private Hospitals and/or non-stock non-profit educational and/or charitable, religious, cultural or social welfare corporations, institutions, foundations, non-government organizations (even if not accredited), trust or philanthropic organizations and/or research institutions or organizations; and
- Local private corporations, civic organizations, and/or international organizations/institutions provided that they are:
- Actually, directly, and exclusively distribute and/or transfer said donations/gifts to; and/or
- Partner as conduit/logistical machinery with, the accredited NGOs and/or national government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government.
Are supporting documents evidencing the donation required in order to avail of the full deductibility?
Yes, there are certain documents which are necessary to prove that a donation took place. The supporting documents would differ as to the donee-recipient. These are as follows:
| Donee-Recipient | Supporting Document |
| National Government or any entity created by any of its agencies which is not conducted for profit (including public hospitals), or to any political subdivision of the said Government, including fully-owned government corporations |
Deed of Donation |
| Accredited non-stock, non-profit educations and/or charitable, religious, cultural, or social welfare corporations, institutions, foundations, non- government organizations, trust or philanthropic organizations, or research institutions or organizations |
Certificate of Donation (BIR Form 2322) |
Apart from the supporting documents, are there documentary requirements which are obligatory to be submitted?
Yes, the Regulation mandates both the donee-recipient and the donor to provide certain documents in order to avail the exemption and full deductibility of the donations from the gross income. They are as follows:
| Donee-Recipient | Documentary requirements for Donee-Recipient |
Documentary Requirements for Donor |
| Accredited non-stock, non-profit educational and/or charitable, religious, cultural or social welfare corporations, institutions, foundations, non-government organizations, trust or philanthropic organizations and/or research institutions or organizations.Non-stock non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non- government organization (even if non-accredited), to include those organized and operated exclusively for health purposes such as private hospitals, trust or philanthropic organization and/or research institution or organization |
Liquidation Report under Annex A of BIR RR No. 09-2020 |
1. Sworn Certification (under Annex B of BIR RR No. 09-2020) executed by the President of the donor-Corporation or any of its authorized officers, or by the donor-individual himself stating the following:a. name of the donee; b. the date of donation; c. the value of the donation; and d. statement that the donation was made solely for the purpose of supporting efforts to fight COVID 19 during the period of the state of national emergency. *together with proof of purchase 2. BIR-registered Acknowledgment |
| Local private corporations or international organizations/ institutions who partner to serve as conduit with accredited NGOs and/or national government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said government |
1. Liquidation Report under Annex A of BIR RR No. 09-20202. Certificate of Donation (BIR Form 2322) or Deed of Donation |
1. Certificate of Donation (BIR Form 2322) or Deed of Donation duly issued by the accredited or government institution, respectively in the name of the donor-corporation/individual 2. Proof of purchase (if donation is 3. BIR-registered Acknowledgment |
Where will these documentary requirements be submitted?
Revenue District Office where the donor and done-recipient are registered.
When should these documents be submitted?
These requirements shall be submitted within sixty (60) days from the lifting of the Enhanced Community Quarantine (“ECQ”).
The issuance of BIR RR No. 09-2020 only proves that the national government greatly appreciates and values the assistance given by the private sector. It also encourages other individuals and/or juridical entities to support the State in its endeavors in the recovery and rehabilitation of the whole nation from the disruptive effects of COVID-19.
For further queries on this matter or other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through our email: solutions@fbrtlawfirm.com.ph, and our website at https://fbrtlawfirm.com.ph/.
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