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MFBR lawyers and associates care!

In light of the constantly changing social and economic landscape in the world due to COVID-19, everyone at Mallari Fiel Brillante Ronquillo has taken steps to make good our steadfast commitment to serve our clients and our communities.

To this end, we designed a new business model incorporating the traditional “brick and mortar” and “virtual” law offices. This new model is to achieve the continuity of rendering our legal and business consultancy services to clients and friends, and the immediate implementation of our crisis management and business transformation activities.

Thus, we’re glad to announce that for every fortnight, half of our team will be physically present at our offices from Monday thru Friday, 8:00am to 3:00pm. Clients and our friends can reach us through our office phones and online platforms (website, emails, Facebook, LinkedIn, Zoom, etc.). And to ensure the health and safety of our staff, they have the option to be housed in the Firm’s private residence or shuttled back and forth using the company’s private vehicle. Safety protocols are also observed at our offices.

Finally, our team has prepared a series of materials around the impact of COVID-19 and related considerations. Please take time to view our sample articles and research published in our website. A complete listing and discussion of these articles are available in our newsletter to be distributed to our esteemed clients.

Should you have questions, please reach out to our Office Manager, Argie Macawile, at +632 86953395, +63977 8502357; or email our Managing Partner, Atty. Rob Mallari, at mfl@mflegal.com.ph and rpmallari@mflegal.com.ph.

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  • “Donate to Deduct” (BIR Regulation No. 09-2020)

“Donate to Deduct” (BIR Regulation No. 09-2020)

By: Ira Christele G. Vicente

Photo Courtesy of: whatalife.ph

Various news clippings are being published online evidencing the generosity of the private sector and the true embodiment of the word “Bayanihan” during these difficult times. Some members of the private sector have led the efforts in providing relief to the national government and other vital institutions in relation to the fight against Corona Virus Disease – 2019 (COVID-19).

As provided for under Bureau of Internal Revenue Revenue Regulations No. 09-2020 (“BIR RR No. 09-2020”) dated 06 April 2020, donations or gifts which are given for the sole and exclusive purpose of combatting COVID-19 during the period of the state of national emergency under R.A. 11469, shall be considered fully deductible against the gross income of the donor (whether an individual or a juridical entity).

What are the donations/gifts which are fully deductible to the gross income of the donor?

The following are the donations which are fully deductible:

  1. Cash donations;
  2. Donations of all critical or needed healthcare equipment or supplies as enumerated above;
  3. Relief goods such as, but not limited to, food packs (rice, canned goods, noodles, etc.) and water; and
  4. Use of property, whether real or personal (shuttle service, use of lots/buildings).

To whom should the donations or gifts be given in order to be fully deductible from the gross income of the donor?

The donees recognized under BIR RR No. 09-2020 are the following:

  1. National Government or any entity created by any of its agencies (including public hospitals) which is not conducted for profit, or to any political subdivision of the said Government, including fully-owned government corporations;
  2. Accredited non-stock, non-profit educations and/or charitable, religious, cultural, or social welfare corporations, institutions, foundation, non-government organization, trust or philanthropic organizations, or research institutions or organizations;
  3. Private Hospitals and/or non-stock non-profit educational and/or charitable, religious, cultural or social welfare corporations, institutions, foundations, non-government organizations (even if not accredited), trust or philanthropic organizations and/or research institutions or organizations; and
  4. Local private corporations, civic organizations, and/or international organizations/institutions provided that they are:
    1. Actually, directly, and exclusively distribute and/or transfer said donations/gifts to; and/or
    1. Partner as conduit/logistical machinery with, the accredited NGOs and/or national government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government.

Are supporting documents evidencing the donation required in order to avail of the full deductibility?

Yes, there are certain documents which are necessary to prove that a donation took place. The supporting documents would differ as to the donee-recipient. These are as follows:

Donee-RecipientSupporting Document
National Government or any entity created by any of its
agencies which is not conducted for profit (including
public hospitals), or to any political subdivision of the
said Government, including fully-owned government
corporations
Deed of Donation
Accredited non-stock, non-profit educations and/or
charitable, religious, cultural, or social welfare
corporations, institutions, foundations, non-
government organizations, trust or philanthropic
organizations, or research institutions or organizations
Certificate of Donation (BIR Form 2322)

Apart from the supporting documents, are there documentary requirements which are obligatory to be submitted?

Yes, the Regulation mandates both the donee-recipient and the donor to provide certain documents in order to avail the exemption and full deductibility of the donations from the gross income. They are as follows:

Donee-RecipientDocumentary requirements
for Donee-Recipient
Documentary Requirements
for Donor
Accredited non-stock, non-profit
educational and/or charitable,
religious, cultural or social welfare
corporations, institutions, foundations,
non-government organizations,
trust or philanthropic organizations
and/or research institutions or
organizations.
 
 
Non-stock non-profit educational
and/or charitable, religious, cultural
or social welfare corporation,
institution, foundation, non-
government organization (even if
non-accredited), to include those
organized and operated exclusively
for health purposes such as private
hospitals, trust or philanthropic
organization and/or research
institution or organization
Liquidation Report under Annex
A of BIR RR No. 09-2020
1. Sworn Certification (under
Annex B of BIR RR No. 09-2020)
executed by the President of the
donor-Corporation or any of its
authorized officers, or by the
donor-individual himself stating
the following:
 
a.       name of the donee;
b.       the date of donation;
c.        the value of the donation; and
d.       statement that the
donation was made solely
for the purpose of
supporting efforts to fight
COVID 19 during the
period of the state of
national emergency.


*together with proof of purchase
(if donation is in kind)
 
2. BIR-registered Acknowledgment
Receipt or the template for an
acknowledgment receipt under
Annex C of BIR RR No. 09-2020
 
Local private corporations or
international organizations/
institutions who partner to serve
as conduit with accredited NGOs
and/or national government or any
entity created by any of its agencies
which is not conducted for profit, or
to any political subdivision of the
said government
1. Liquidation Report under
Annex A of BIR RR No. 09-2020
 
2. Certificate of Donation (BIR
Form 2322) or Deed of Donation



1. Certificate of Donation (BIR
Form 2322) or Deed of Donation
duly issued by the accredited or
government institution,
respectively in the name of the
donor-corporation/individual
 
2. Proof of purchase (if donation is
in kind)
 
3. BIR-registered Acknowledgment
Receipt or the template for an
acknowledgment receipt under
Annex C of BIR RR No. 09-2020 to
be issued by the ultimate
beneficiary

Where will these documentary requirements be submitted?

Revenue District Office where the donor and done-recipient are registered.

When should these documents be submitted?

These requirements shall be submitted within sixty (60) days from the lifting of the Enhanced Community Quarantine (“ECQ”).

The issuance of BIR RR No. 09-2020 only proves that the national government greatly appreciates and values the assistance given by the private sector. It also encourages other individuals and/or juridical entities to support the State in its endeavors in the recovery and rehabilitation of the whole nation from the disruptive effects of COVID-19.

For further queries on this matter or other legal concerns, you may contact us from Mondays to Fridays, 9:00 AM to 6:00 PM, through our email: mfl@mflegal.com.ph, and our website at http://mfbr.com.ph.

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