University of the Philippines

September 8, 2009 BIR RULING [DA-(DT-045) 499-09] RA 9500; DA-312-2000 University of the Philippines Office of the Vice-President for Legal Affairs 3/F South Wing, Quezon Hall U.P. Diliman, Quezon City Attention: Theodore O. Te Vice-President for Legal Affairs Gentlemen : This refers to your letter dated July 06, 2009 requesting for a ruling to the effect that donations of real and personal properties to the University of the Philippines are not subject to donor's tax and income tax and considered as allowable deductions from the gross income of the donor. In reply, please be informed that pursuant to Section 25 of Republic Act (RA) 9500, "An Act to Strengthen the University of the Philippines as the National University" , (This Act shall be known as the University of the Philippines Charter of 2008), to wit: xxx xxx xxx "Sec. 25. Tax Exemptions . The provision of any general or special law to the contrary notwithstanding: a) . . . b) Gifts and donations of real and personal properties of all kinds shall be exempt from donor's tax and the same shall be considered as allowable deduction from the gross income of the donor in accordance with the provisions of the National Internal Revenue Code of 1997, as amended: Provided, That the allowable deductions shall be equivalent to 150 percent of the value of such donation. Valuation of assistance other than money shall be based on the acquisition cost of the property. Such valuation shall take into consideration the depreciated value of property in case said property has been used; IAETSC c) . . . Such being the case, all gifts and donations to the University of the Philippines are exempt from donor's tax pursuant to the above-cited law, and consistent with Section 101 (A) (3) also of the Tax Code of 1997, as amended, which exempts from the donor's tax on gifts in favor of the educational institution subject to the condition that not more than thirty (30%) percent of said gifts shall be used by such donee for administration purposes. The University of the Philippines, being a government educational institution, falls under the purview of Section 101 (A) (3) of the Tax Code of 1997, as amended. With regard to the deductibility of donations, the donors can claim up to 150 percent allowable deduction from their donation to the University of Philippines pursuant to the above-cited law. cTECIA 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service