Entitlement to Full Deductibility of the Donors of the "Building the National Art Collection" Project of the National Museum

March 13, 1992 BIR RULING NO. 077-92 29 (h) (2) (A) 000-00 077-92 National Museum Department of Education, Culture and Sports P. Burgos St., Manila Attention: Mr . Gabriel S . Casal Director Gentlemen : This refers to your letter dated 14 January 1992 requesting information on the procedures to be taken, the documents to be submitted and the requirements to be complied with by the National Museum in order that the donors of your project called "Building the National Art Collection," may be able to deduct in full their donations for income tax purposes. In reply, please be informed that, in view of the certification by the NEDA in its letter dated September 28, 1990 that your project entitled "Building the National Art Collection" has been approved for inclusion in the National Priority Plan: CY 1990-1992, all donations in your favor for the said project whether in cash or in kind, except personal services shall be deductible in full from the corporate or individual donor's taxable income derived from business pursuant to Section 29(h)(2)(A) of the Tax Code, as amended by Batas Pambansa Blg. 45 as implemented by BIR-NEDA Regulations No. 1-81 as amended by Revenue Regulations Nos. 1-82 and 10-82. In order that the donors of your project may avail of the full deductibility, you are required to issue a certificate of donation in such form as prescribed by the BIR, on every donation or gift received. Such certificate shall be accomplished in four copies and distributed within 30 days after the receipt of donation, as follows: a) Original copy Donor b) Duplicate copy BIR c) Triplicate copy Donee d) Quadruplicate copy NEDA Moreover, donors should give a notice for every donation worth P1,000.00 to the Commissioner of Internal Revenue within 30 days after receipt of the Certificate of Donation attaching thereto a copy of the Certificate issued to it by the qualified donee institutions (Section 6, BIR-NEDA Regulations No. 1-81 as amended). Finally, all donations for any project contained in the National Priority Plan shall be used exclusively for the implementation thereof. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue