Deductibility of the Contribution of the Incorporators

November 16, 1988 BIR RULING NO. 545-88 29 (h) (2) (c) 526-88 545-88 Gentlemen : This refers to your letter dated August 5, 1988 requesting confirmation of your opinion that the contribution of the incorporators of Alfredo & Florencia R. Infante Memorial Foundation, Inc. in the amount of P5,000.00 and the donation commitment of P500,000.00, if finally given to the foundation and such other donation that the Foundation will receive are deductible in full for income tax purposes. In reply, please be informed that for income tax purposes, donations or contributions shall be allowed as deductions in an amount not exceeding 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 (Sec. 29(h)(l), Tax Code). However, said donations or contributions, can be deductible in full provided the conditions prescribed by Section 30(h)(2)(c) [now 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 are complied with. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner