RMC No. 86-2014: Clarifies the valuation of contributions or gifts actually paid or made in computing taxable income

Key points

1. Certificate of Donation. The information required by Section 8 of RR No. 13-98 must appear in the Certificate of Donation (BIR Form 2322), following the format in Annex A of the circular.
2. Donee page. The first page of BIR Form 2322 is the donee’s certification that it received the cash or property on the date indicated, with a description of the properties donated. An authorized representative of the donee organization must sign it.
3. Donor statement. The second page is the donor’s statement of the descriptions, acquisition costs and net book values of the donated properties, as shown in the donor’s financial statements. It comes with the deed of sale or bill of sale proving acquisition cost, and the donor or an authorized representative signs it.
4. BIR confirmation and examination. The values the donor declares remain subject to BIR confirmation of correctness and accuracy. Under Section 235 of the NIRC, books and records of tax-exempt organizations and tax incentive grantees may be examined by the BIR to check compliance with exemption conditions and tax liability.

Who is affected

• Donors
• Donee organizations
• Tax-exempt organizations and grantees of tax incentives