Deductibility from the Donor's or Contributor's Taxable Income of Contributions of Prowl Car for Exclusive Use of the Makati Police Department

October 19, 1987 BIR RULING NO. 320-87 30 (h) 153-84 320-87 Gentlemen : This refers to your letter dated September 10, 1987 requesting a ruling as to whether or not contribution to the Municipality of Makati by your Company or a group of companies and/or individuals in the form of equipment such as prowl car for the exclusive use of the Makati Police Department or other equipment for community improvement is deductible in full under Sec. 30(h) of the Tax Code or as a business expense under Sec. 30(a)(1)(A) of the Tax Code. In reply, please be informed that contributions or gifts actually paid or made within the taxable year to, or for the use of the Government of the Philippines or any of its agencies or any political subdivision thereof for exclusively public purposes , i.e., contributions of prowl car for exclusive use of the Makati Police Department or other equipment for community improvement, shall be deductible only in an amount not in excess of 6% in the case of an individual, and 3% in the case of a corporate donor of the donor's or contributor's taxable income derived from business as computed without the benefit of said contribution or donation pursuant to Section 30(h) of the Tax Code, as amended by Executive Order No. 37. The contributions or gifts are not deductible as a business expense under Sec. 30 (a)(1)(A) of the Tax Code. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner