Summary
RR No. 9-2020, issued April 7, 2020, implements Section 4 (z) and Section 4 (ee) of Republic Act No. 11469 (Bayanihan to Heal as One Act) by granting further benefits on donations during the Enhanced Community Quarantine (ECQ) period.
Key points
- Fully deductible donations. Donations made under Sections 101 and 34 (H) of the NIRC solely to combat COVID-19 during the state of national emergency are fully deductible from the donor’s gross income. They cover cash, critical healthcare equipment or supplies, relief goods such as food packs and water, and use of property such as shuttle service or lots and buildings.
- Qualified donees and documents. Donations to the National Government, its non-profit entities and public hospitals, political subdivisions and fully-owned government corporations need a Deed of Donation. Donations to accredited non-stock, non-profit educational, charitable, religious, cultural or social welfare institutions and similar organizations need a Certificate of Donation (BIR Form No. 2322).
- Government donees. Donations to the National Government, its agencies, political subdivisions and fully-owned government corporations are fully deductible whether or not covered by the NEDA annual priority plan. No Notice of Donation is required.
- Donor’s Tax exemption. These donations are also exempt from Donor’s Tax and fully deductible when given to private hospitals and non-stock non-profit organizations, even if non-accredited, subject to timely submission of the documents in Section 6.
Who is affected
- Donor-corporations and donor-individuals
- Government, private hospitals and non-stock non-profit organizations receiving donations
Deadlines and effectivity
- Donations made during the state of national emergency under RA No. 11469
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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