Donations to the Cultural Center of the Philippines are Deductible in Full from the Gross Income of the Donor

December 23, 1987 BIR RULING NO. 413-87 30 (h) 000-00 413-87 Gentlemen : This refers to your letter dated September 8, 1987 requesting a ruling as to whether your donor (apparently a manufacturer) can deduct donations made to you from the manufacturer's sales tax liability. It is represented that your donor will provide you with materials for leasehold improvements specifically rubber flooring materials; and that your donor estimates that its net taxable income for this fiscal year will be less than the value of its donation. In reply thereto, I have the honor to inform you that your request cannot be granted for lack of legal basis. Pursuant to Section 11 of Presidential Decree No. 15, as amended, contributions to the Cultural Center of the Philippines shall be deductible in full and shall not be included for purposes of computing the maximum amounts deductible under the first paragraph of Section 30(h) of the Tax Code, as amended. Accordingly, donations to you are deductible in full from the gross income of your donor (manufacturer) and not from its manufacturer's sales tax liability. adc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner