Full Deductibility of Contributions to Private Science Foundations

March 3, 1981 BIR RULING NO. 048-81 30-h 000-00 048-81 Minister Melecio S. Magno National Science and Development Board (NSDB) General Santos Avenue, Bicutan Taguig, Metro Manila S i r : This refers to your letter dated February 25, 1980 to the Minister of Finance requesting clarification concerning full deductibility of contributions to private science foundations, in the light of Section 30(h) of the National Internal Revenue Code of 1977, as amended by Batas Pambansa Blg. 45 which took effect on December 18, 1979. In reply, I have the honor to inform you as follows: 1. Under section 30(h)(4) of the Tax Code, before its amendment by Batas Pambansa Blg. 45, in relation to Section 24 of R.A. No. 2067, as amended by R.A. No. 3589, donations to private science foundations are deductible in full from the gross income of the contributor, upon certification from that Board that such foundations and funds are dedicated to scientific pursuits. Under Section 4 (Repealing Clause) of B.P. Blg. 45, said provisions allowing full deductibility of donations to private science foundations are repealed or modified accordingly. Such being the case, donations to private science foundations are still covered by Section 24 of R.A. No. 2067, as amended, and, therefore, certifiable by that Board for purposes of full deduction for income tax purposes only up to December 17, 1979 , since the following day (December 18, 1979), B.P. Blg. 45 already took effect. 2. Section 3 of B.P. Blg. 45 requiring all organizations or institutions which are qualified donees for purposes of the full deductibility of charitable contributions either under the National Internal Revenue Code of 1977 or under special laws to apply for requalification with the Commissioner of Internal Revenue within the period provided by the implementing regulations, applies to private science foundations, since under Section 30(h) (2)(c) of the Tax Code, as amended by B.P. Blg. 45, the term "private foundations" includes among others non-profit domestic corporations organized and operated exclusively for scientific purposes, no part of the net income of which inures to the benefit of any private individual. During the period of requalification, donations to such foundations are fully deductible based on the certifications issued by that Board before the effectivity of B.P. Blg. 45 on December 18, 1979 that the foundations and funds are dedicated to scientific pursuits, as provided in Section 4 of R.A. No. 2067, as amended. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner