BIR Ruling

May 14, 1974 Hon. Roberto V. Reyes Assistant Executive Secretary Malacaang, Manila S i r : This refers to your letter dated April 17, 1974 requesting information as to the procedure of claiming deduction representing contributions of individuals and corporations; for charitable purposes which are subject to the 6% or 3% limitation, respectively, if a taxpayer also has contributions which, under Section 30(h) of the Tax Code, are deductible in full. cdi In reply, I have the honor to inform you that under Section 30(h) of the Tax Code, contributions or gifts for charitable purposes are deductible from the gross income "to an amount not in excess of six per centum in the case of an individual; and three per centum in the case of a corporation; of the taxpayer's taxable net income as computed without the benefit of this paragraph" (Section 30(h). In other words, in computing the amount of contributions deductible from gross income; all the other deductions claimed by the taxpayer should be deducted. The difference will then be the basis of computing the deductible contribution subject to 6% or 3% limitations. After determining said deductible contribution subject to limitations; the taxpayer may then deduct such contributions which under Section 30(h) of the Tax Code, are deductible in full. In this connection, please be informed that, if as represented the Community Chest Foundation of Greater Manila, is certified by the National Science and Development Board as dedicated to scientific pursuits, pursuant to Republic Act No. 3589, the donations to the said Foundation are deductible in full. (Sec. 30 (h) (4), Tax Code). Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5