National Museum

May 27, 2008 BIR RULING [DA-320-08] 34 (H) (2) (a); DA-291-2004 National Museum P. Burgos Street Manila Attention: Corazon S. Alvina Director IV Gentlemen : This refers to your letter dated January 16, 2008 requesting for a ruling on whether or not donations to the National Museum can be treated as full deductible expense on the part of the donor's in accordance with Section 34 (H) (2) (a) of the Tax Code of 1997, as amended. It is represented that the National Museum was established by Republic Act (R.A.) No. 8492 "An Act Establishing a National Museum, Providing for its Permanent Home and for Other Purposes" in February 1998; and that it regularly accepts donations in support of its duties and functions from benefactors either individually or from corporations of the private sector. In reply, please be informed that under Section 34 (H) (2) (a) of the Tax Code of 1997, as amended, which provides, to wit: "(2) Contributions Deductible in Full. Notwithstanding the provisions of the preceding subparagraph, donations to the following institutions or entities shall be deductible in full: (a) Donations to the Government. Donations to the Government of the Philippines or to any of its agencies or political subdivisions, including fully-owned government corporations, exclusively to finance, to provide for, or to be used in undertaking priority activities in education, health, youth and sports development, human settlements, science and culture, and in economic development according to a National Priority Plan determined by the National Economic and Development Authority (NEDA), in consultation with appropriate government agencies, including its regional development councils and private philanthropic persons and institutions: Provided, That any donation which is made to the Government or to any of its agencies or political subdivisions not in accordance with the said annual priority plan shall be subject to the limitations prescribed in paragraph (1) of this Subsection." DaScAI Accordingly, donations made to the Government of the Philippines or to any of its agencies or political subdivisions are deductible in full. Hence, National Museum being created under R.A. No. 8492, thereby making it a government agency, donations made to it shall be considered as donations to the government and are deductible in full on the part of the donors. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. aITECA Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service