BIR Ruling No. 112-82

April 15, 1982 BIR RULING NO. 112-82 030-h 102-80 112-82 Vitarich Corporation Sarmiento Building 2 Pasong Tamo Ext. Makati, Metro Manila Attention: Mr . Rogelio B . Abuloc Comptroller Gentlemen : This refers to your letter dated June 5, 1980 requesting reconsideration of the ruling of this Office dated May 14, 1980 that your donation made on April 2, 1980 in favor of the Provincial Nutrition Committee of Nueva Ecija, represented by Governor Eduardo L. Joson of Nueva Ecija, is not deductible in full, for income tax purposes, but only to an amount not in excess of 3% in the case of a corporate donor, and 6% in the case of an individual donor, of the donor's or contributor's taxable net income as computed without the benefit of said contribution or donation. cdt 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, a donation to the Government of the Philippines or to any of its agencies to be fully deductible 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 contributor's taxable net income as computed without the benefit of said contribution or donation. Presidential Decree No. 1200 cited by you does not contain any national priority determined by NEDA which can be applied the donation in question. Accordingly, your request for reconsideration cannot be granted for lack of legal basis. Very truly yours, RUBEN B. ANCHETA Acting Commissioner