Deductibility of Donation Not Included in the National Priority Plan

February 27, 1985 BIR RULING NO. 029-85 30-h 000-00 029-85 Gentlemen : In reply to your letter dated January 22, 1985, I have the honor to inform you that although your donation of P102,000 for the construction of a two-room schoolbuilding in the province of Surigao del Norte will be used by the Government in undertaking priority activities in education, said donation is deductible in full from the gross income of the donor, provided that the same are in accordance with the national priority plan to be determined by the NEDA, in consultation with appropriate government agencies including its regional development councils, and private philanthropic persons and institutions. [Sec. 30(h)(2)(A), Tax Code, as amended by Batas Pambansa Blg. 45; Sections 3 and 4, BIR-NEDA Regulations No. 1-81 as amended by BIR-NEDA Regulations No. 1-82] It appears that the above project whereby the province of Surigao del Norte is the donee institution, is not included in the National Priority Plan furnished this Office by the NEDA for the calendar year 1985. Such being the case, you cannot claim full deduction with respect to the above donation for income tax purposes unless this project is subsequently included into the Plan by NEDA. However, in the absence of NEDA determination, the same is deductible from your gross income subject to the 3% limitation prescribed in Section 30(h) (1) of the Tax Code. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner