New Revenue Code of the City of Malabon, 2016

August 3, 1995 BIR RULING [UN-288-95] Laguna Lake Development Authority 3/F Rizal Provincial Building Pasig, Metro Manila Attention: Mr . Alejandro E . Santiago General Manager Gentlemen : This refers to your letter dated April 19, 1995 stating that Laguna Lake Development Authority (LLDA) is a government owned and controlled corporation; that as part of the government's effort to stem the further degradation of the natural environment in the Laguna de Bay Region, it has embarked on a project to rehabilitate the San Cristobal River System in Calamba, Laguna; that LLDA depends on the voluntary contributions of the general public and the support of all sectors of society; that LLDA adheres to the so called "Polluter-User-Pay" Principle where the concerned industries found to be discharging effluents into the river will be asked to shoulder the bulk of the rehabilitation cost. Based on the foregoing representations, you are now requesting for a ruling to the effect that the donations to your project are tax deductible by potential donors for income tax purposes. In reply, please be informed that under Section 29 (h) (2) (A) of the Tax Code, as amended, donations to the Government of the Philippines or to any of its agencies or political subdivisions including fully-owned government corporations 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 National Economic and Development Authority (NEDA), in consultation with appropriate government agencies, including its regional development councils and private philanthropic persons and institutions shall be deductible in full, Provided, that any donation which is made to the Government or to any of its agencies or political subdivisions not in accordance with the said annual priority plan shall be subject to the limitations prescribed in Section 29 (h) (1) of the Tax Code, as amended. Such being the case, and since there is no proof that the donations to be made by the potential donors to LLDA exclusively to finance or to provide funds for the rehabilitation of the San Cristobal River System in "Calamba, Laguna is in accordance with a national priority plan as determined by the NEDA, the deductibility of the said donations shall be limited to 3% of the taxable income of corporate donors, in accordance with Section 29 (h) (1) of the Tax Code, as amended. However, in the case of individuals, their contributions or gifts to the government or any of its political subdivisions are no longer deductible from their taxable income, except those contributions made by individuals engaged in business or practice of profession to the government and accredited relief organizations for the rehabilitation of Calamity-stricken areas declared by the President, pursuant to Section 29(f) of the Tax Code, as amended by Republic Act No. 7496, otherwise known as the Simplified Net Income Taxation Scheme. (BIR Ruling No. 066-95, dated April 5, 1995) aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)