Extent of Deductibility of Donations Made to the Government or Any of Its Agencies

July 23, 1980 BIR RULING NO. 102-80 Human Settlements Development Corporation P. O. Box 1242 M.C.C. Makati, Metro Manila Attention: Mr . Enrique A . Velez Officer-In-Charge Gentlemen : This refers to your letter dated April 23, 1980 inquiring whether the donations of personal and real property made by private individuals as well as corporate entities to you as the corporate arm of the Ministry of Human Settlements are deductible for income tax purposes and if so, to what extent are they deductible, in full or in accordance with the rates under paragraph (2) of Section 30(h) of the Tax Code of 1977, as amended. In reply, I have the honor to inform you that, pursuant to Section 30(h) of the Tax Code of 1977, as amended by Batas Pambansa Blg. 45, to be fully deductible, a donation to the Government of the Philippines or to any of its agencies should be exclusively to finance, to provide for or to be used in undertaking priority activities in education, health, youth and sports development, human settlements, science and culture, and in economic development according to a 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. If the said donation is not in accordance with the said annual priority plan, the same shall not be deductible in full, for income tax purposes, but only to an amount not in excess of 6% in the case of an individual donor, and 3% in the case of a corporate donor, of the donor's or contributor's taxable net income as computed without the benefit of said contribution or donation. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner