BIR Ruling

August 9, 1976 The Undersecretary, LG Department of Local Government and Community Development 11th Floor City Hall, Quezon City S i r : This refers to your letter dated March 16, 1976, requesting confirmation, that donations for the construction of Medicare hospital in Barangay Macarascas, Puerto Princesa City, are tax-exempt, and shall be deductible in full in computing the taxable net income of the donor. In reply thereto, I have the honor to inform you that if the Medicare Hospital is a government hospital not conducted for profit, donations for its construction are exempt from the donor's gift tax, pursuant to Section 112(a)(2) of the Tax Code, as amended. For income tax purposes, said donations and/or contributions are deductible from the gross income of the contributor to an amount not in excess of six per centum in the case of an individual, and three per centum in the case of corporation, of the taxpayer's taxable net income as computed in accordance with Section 30(h) of the Tax Code. acd Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3