BIR Ruling [DA-634-04]

December 15, 2004 BIR RULING [DA-634-04] 32 (H) (2) (a) DA-211-2002 Hon. Monico O. Puentevella Chairman, Committee on Transportation N-414 House of Representatives Constitution Hills, Quezon City S i r : This refers to your letter dated November 30, 2004 requesting for a ruling whether donations to the Philippine Sports Commission (PSC) can be deducted in full from the gross income of the donor. In reply, please be informed that pursuant to Section 20 of Republic Act (RA) No. 6847, otherwise known as "An Act Creating and Establishing the Philippine Sports Commission, Defining its Powers, Functions and Responsibilities, Appropriating Funds therefor, and for other purposes," which provides, viz : "Section 20. Tax Deduction or Exemption of Donations and Contributions . All donations and contributions to the Commission in connection with its fund-raising projects and its continuing sports development programs shall be exempt from the donors taxes, and shall be deductible in full in the computation of the taxable net income of the donor. Donations and contributions to the Philippine Olympic Committee and/or the various national sports associations certified by the Commission to be pursuant to the development of sports in the country shall likewise be exempt from the payment of the donor's and estate taxes and shall be deductible in full in computing the taxable net income of the donor." In reply, please be informed that the aforequoted provision of RA No. 6847, which took effect in 1990 , clearly exempts from the donor's tax all donations and contributions to the PSC in connection with its fund-raising projects and its continuing sports development program, and for the deductibility of said donations and contributions for income tax purposes. As far as this Office is concerned, the said provision of law has not been amended and/or repealed by the Tax Code of 1997. (BIR Ruling No. DA-211-2002 dated November 15, 2002) acCETD This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group