Deductibility of Contributions, Donations, Gifts and Bequests to the Filipino War Veterans Foundation (Filvets), Inc.

October 18, 1989 BIR RULING NO. 215-89 29 (h) (1) 154-89 215-89 Gentlemen : This refers to your letter dated September 12, 1989 requesting that contributions, donations, gifts and bequests to the Filipino War Veterans Foundation (Filvets), Inc. be allowed as deduction from the gross income of the donor and/or contributor for income tax purposes. cdtech It appears that, pursuant to Proclamation No. 467 dated September 14, 1989 of the President of the Philippines, "the Filipino War Veterans Foundation (Filvets), Inc. is a non-profit, non-stock, charitable entity organized by Philippine veterans for the purpose of extending aid and assistance to Filipino veterans of Philippine wars, revolutions, expeditions and campaigns and their dependents to complement the efforts of the Government, and to perpetuate, promote, preserve and memorialize their principles, ideals and deeds as a means to promote patriotism and love of country." It appears that the same purposes are provided in your Articles of Incorporation approved by the Securities and Exchange Commission. Moreover, the proclamation states that contributions to that Foundation shall be governed by the provisions of Section 29 of the Tax Code, as amended by Executive Order No. 273. In reply thereto, please be informed that since that Foundation is organized and operated exclusively for charitable purposes and for the rehabilitation of veterans and is, likewise, a social welfare institution, no part of the net income of which inures to the benefit of any private individual, donations or contributions to that Foundation shall be allowed as deduction in an amount not in excess of 6% in the case of an individual, and 3% in the case of a corporation, of the taxpayer's taxable income derived from business as computed without the benefit of this deduction, pursuant to Section 29(h)(1) of the Tax Code. However, said donations or contributions, can be deductible in full provided the conditions prescribed by Section 29(h)(2)(C) of the Tax Code, as amended by Batas Pambansa Blg. 45 and as implemented by BIR-NEDA Regulations No. 1-81 as amended are complied with. Very truly yours, (SGD.) JOSE U. ONG Commissioner