DONOR’S TAX – EXEMPTIONS or DEDUCTIONS

REPUBLIC ACT No. 1606

AN ACT TO PROMOTE SCIENTIFIC, ENGINEERING AND TECHNOLOGICAL

RESEARCH, INVENTION AND DEVELOPMENT.

SECTION 3. To carry out the provisions of this Act there is hereby

appropriated out of any funds in the National Treasury not otherwise
appropriated, or from the proceeds of any bond issues authorized by law,
beginning for the fiscal year nineteen hundred fifty-seven, the sum of four
million five hundred thousand pesos to constitute a special fund to be
known as the Scientific, Engineering and Technological Research Fund for
the first year and there is hereby appropriated two million three hundred
eighty thousand pesos for the second year, and two million two hundred
fifty thousand pesos each year for the third, fourth and fifth years:
Provided, That any unexpended appropriation for any particular year shall
not revert to the General Fund.

Any amount in the form of grants, donations or aids that may be received
by the Philippine Government for scientific, engineering and technological
research, invention, and development, which shall be exempted from all
taxes shall also form part of this Fund.

PRESIDENTIAL DECREE NO. 507

July 16, 1974

EXEMPTING DONATIONS AND/OR CONTRIBUTIONS AND REQUEST TO

SOCIAL WELFARE, CULTURAL AND CHARITABLE INSTITUTIONS FROM
CERTAIN TAXES AND PROVINCIAL TAX ALLOWANCE THEREFOR

WHEREAS, non-profit social welfare, cultural and charitable institutions

operate generally on funds generated through donations;

WHEREAS, these non-profit institutions are viable instruments for social

welfare and cultural development of the country;

WHEREAS, the success of the mission of these institutions depends largely

on the sufficiency of their financial resources; and

WHEREAS, it is necessary to encourage donations to these institutions in

order to enable them to acquire the necessary funds for their continue
operations.

SECTION 1. Any provision of law, decree, rules and regulations to the

contrary notwithstanding, all gifts, bequests, donations and/or
contributions to social welfare, cultural and charitable institutions, no part
of the net income of which inures to the benefit of any individual, shall be
exempt from the donor's and estate taxes and shall be deductible in full in
computing the taxable net income of the donor. Provided, however, that
not more than thirty per centum of said gifts and bequests shall be used
by such donee for administration purposes.

The Secretary of Finance, upon recommendation of the Commissioner of

Internal Revenue, shall promulgate rules and regulations to implement
this Decree.

REPUBLIC ACT NO. 1916

June 22, 1957

AN ACT EXEMPTING FROM THE PAYMENT OF ALL TAXES AND DUTIES ALL
DONATIONS IN ANY FORM AND IMPORTATIONS OF ARTICLES WHICH ARE
DONATIONS TO INTERNATIONAL CIVIC ORGANIZATIONS, RELIGIOUS OR
CHARITABLE INSTITUTIONS AND PROVIDING PENALTIES FOR VIOLATION
THEREOF

SECTION 1. The provisions of existing laws to the contrary

notwithstanding, all donations in any form and all articles imported into
the Philippines, consigned to a duly incorporated or established
international civic organization, religious or charitable society or institution
for civic, religious or charitable purposes shall be exempt from the
payment of all taxes and duties upon proof satisfactory to the
Commissioner of Customs and/or Collector of Internal Revenue that such
donations in any form and articles so imported are donations for its use or
for free distribution and not for barter, sale or hire: Provided, however,
That in case such articles are subsequently conveyed or transferred to
other parties for a consideration, taxes and duties shall be collected
thereon at double the rate provided under existing laws payable by the
transferor: Provided, further, That rules and regulations shall be
promulgated by the Department of Finance for the implementation of this
Act.

REPUBLIC ACT NO. 2707

June 18, 1960

AN ACT TO EXEMPT THE INTERNATIONAL RICE RESEARCH INSTITUTE OR

ITS SUCCESSORS FROM THE PAYMENT OF GIFT, FRANCHISE, SPECIFIC,
PERCENTAGE, REAL PROPERTY EXCHANGE, IMPORT, EXPORT AND ALL
OTHER TAXES, AND THE MEMBERS OF ITS SCIENTIFIC AND TECHNICAL
STAFF FROM THE PAYMENT OF INCOME TAX
SECTION 1. The provisions of existing laws or ordinances to the contrary
notwithstanding, the International Rice Research Institute, or its
successors, shall be exempt from the payment of gift, franchise, specific,
percentage, real property, exchange, import, export, and all other taxes
provided under existing laws or ordinances. This exemption shall extend to
goods imported and owned by the International Rice Research Institute to
be leased or used by members of its staff.

SECTION 2. All gifts, bequests, donations and contributions which may be

received by the International Rice Research Institute from any source
whatsoever, or which may be granted by the Institute to any individual or
non-profit organization for educational or scientific purposes, shall be
exempt from the payment of the taxes imposed under Title III of the
National Internal Revenue Code. All gifts, contributions and donations to
the Institute shall be considered allowable deductions for purposes of
determining the INCOME TAX of the donor.

SECTION 3. Non-Filipino citizens serving on the technical and scientific

staff of the International Rice Research Institute shall be exempt from the
payment of INCOME TAX on salaries and stipends in dollars received
solely and by reason of service rendered to the Institute.

PRESIDENTIAL DECREE NO. 373

January 9, 1974

EXEMPTING FROM TAXATION ALL DONATIONS TO THE NATIONAL MUSEUM,

THE NATIONAL LIBRARY AND THE ARCHIVES OF THE NATIONAL
HISTORICAL INSTITUTE

WHEREAS, museums, national libraries and archives depend mostly on

donations for the support of their projects or the acquisition of items for
their collections.

WHEREAS, in most countries donations to museums, national libraries and

archives are tax-exempt, like donations to charitable institutions.

WHEREAS, many collectors have expressed willingness to donate items to

the National Museum, the National Library and our archives under the
National Historical Institute but are deterred by present taxation policies.

SECTION 1. All monetary contributions and the equivalent monetary

value of works of art, manuscript, books or other articles of cultural,
historical or scientific significance, donated to the National Museum, the
National Library and the National Historical Institute, are tax exempt and
deductible from the taxable income of the donor.

SECTION 2. The Director of the National Museum, the Director of the

National Library and the Chairman of the National Historical Institute, in
the case of the national archives, are each hereby authorized to convene a
panel of experts who shall pass on the merit of the item or items offered
as donation to their respective collections and shall determine the
VALUATION thereof.

PRESIDENTIAL DECREE NO. 690

April 22, 1975

CREATING THE SOUTHERN PHILIPPINES DEVELOPMENT ADMINISTRATION

AND ABOLISHING THE COMMISSION ON NATIONAL INTEGRATION, THE
MINDANAO DEVELOPMENT AUTHORITY, THE PRESIDENTIAL TASK FORCE
FOR THE RECONSTRUCTION AND DEVELOPMENT OF MINDANAO, AND THE
SPECIAL PROGRAM OF ASSISTANCE FOR THE REHABILITATION OF
EVACUEES (SPARE), APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.

Section 20. Tax Exemptions. The Administration shall be exempt form

payment of all income taxes, franchise taxes, realty taxes and all kinds of
taxes and licenses to the National Government, its provinces, cities,
municipalities, and other government agencies and instrumentalities:
Provided, that its subsidiary corporations shall be subject to all said taxes
five years after their establishment under a graduated scale as follows:
twenty per centum of all said taxes from the sixth to the seventh year,
sixty per centum of all said taxes from the eight to the tenth year, after its
establishment. Such exemption shall include any tax or fee imposed by
the government on the sale, purchase or transfer of foreign exchange. All
notes, bonds and debentures and other obligations issued by the
Administration shall be exempted from all taxes, both as to principal and
interest, except inheritance and gift taxes.

Section 21. Donations and Gifts. The Administration shall have the right
to receive donations or bequests which shall be utilized only for the
implementation of the programs and projects of the Administration. Such
donations or bequests shall be exempt from the payment of gift taxes and
the full amount of such donation or bequest shall be deductible from the
gross income of the donor for the year during which the same is made.

PRESIDENTIAL DECREE NO. 1616

CREATING THE "INTRAMUROS ADMINISTRATION" FOR PURPOSES OF

RESTORING AND ADMINISTERING THE DEVELOPMENT OF INTRAMUROS

SECTION 16. Grants/contributions. — The administration is authorized to

accept and receive grants/contributions from private parties to the
obligated and disbursed in such manner as the Authority may, in the
exercise of sound discretion, deem best to accelerate the restoration or
enhance the maintenance of historical facilities in Intramuros and
contribute to their development and preservation. The Administration is
likewise authorized to give grants and contributions to private parties for
the restoration or maintenance of historical facilities in Intramuros. All
grants and donations to the Intramuros Administration shall be exempt
from donors and other taxes and shall be fully deductible, over and above
what is ordinarily allowable under the national internal revenue code, for
purposes of computing liabilities of the donor on income tax, estate tax, or
gift or donor's tax on other donations: Provided, That the value or
donations in kind shall be determined in consultation with the
Commissioner of Internal Revenue.