2. What donations are tax exempt?

 Gifts made to or for the use of the 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
 Gifts in favor of an educational and/or charitable, religious, cultural or social welfare
corporation, institution, accredited non-government organization, trust or philantrophic
organization or research institution or organization, provided not more than 30% of said gifts will
be used by such donee for administration purposes

3. What are the bases in the valuation of property?

If the gift is made in property, the fair market value at that time will be considered the amount of
gift.

In case of real property, the taxable base is the fair market value as determined by the
Commissioner of Internal Revenue (Zonal Value) or fair market value as shown in the latest
schedule of values fixed by the provincial and city assessor (MV per Tax Declaration),
whichever is higher. (Sec. 88 and 102, NIRC as amended)

If there is no zonal value, the taxable base is the fair market value that appears in the tax
declaration at the time of the gift

Donations, whether from local or foreign entities, or a non-resident non-citizen of the

Philippines, can be exempt from donor’s tax if made to or for use of the national government, or
any of its agencies which is not conducted for profit or to any political subdivision of the
Government, and in favor of any educational, charitable, religious, cultural or social welfare
corporation, institution, foundation, trust or philanthropic organization or research institution or
organization, which must first be accredited with the Philippine Council for NGO Certification,
Inc. (PCNC), and subject to the condition that not more than 30% of said donation shall be used
for administration purposes.

In addition, the donor engaged in trade, business or profession is allowed to claim as full
deduction the donations made within the taxable year to accredited NGOs, if all of the conditions
prescribed under Revenue Regulations No. (RR) 13-98 are complied with. That is, the accredited
NGO shall make utilization directly for the active conduct of the activities constituting the
purpose or function for which it is organized and operated, and the level of administrative
expenses of the accredited NGO, shall, on an annual basis, not exceed 30% of the total expenses
for the taxable year.

expressed interest to donate portions of the properties to accommodate the police stations in
their localities. - See more at: http://www.cebu.gov.ph/news/capitol-donates-lot-
pnp/#sthash.NEyadiVr.dpuf
there tax benefits granted to taxpayers who donate to
accredited institutions?
Yes! Donors enjoy certain tax privileges like deductibility of donations and exemption from
donor’s tax.

Full deductibility of donations is allowed only for donations to accredited NGOs. For donations
to non-accredited NGOs, the deduction is allowed only up to 10% for an individual donor and
5% for a corporate donor, of the donor’s business income.

Donations to accredited NGOs/NPOs shall be exempt from donor’s tax as long as not more than
30% of the said donations for the taxable year shall be used by such NGO for administration
purposes.

Yes, donations, contributions or gifts that are made within the taxable year to accredited NGOs can be
fully claimed as deduction. However, the deduction cannot exceed 10% of the income of an individual
donor, and 5% for a corporate donor.

Aside from the donor’s tax issue, the other to consider with regards to gifts or donations
is whether the same is deductible for purposes of computing the donor’s net taxable
income. Under Section 34(H)(2) of the Tax Code, donations are deductible in full for as
long as these are made to the government to be used exclusively 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
determined by the National Economic Development Authority (NEDA). Also,
donations made to accredited NGOs are deductible in full. Should donations given to
the government not qualify under the foregoing criteria, or are not made to accredited
NGOs, the donations shall only be deductible to the extent of 10% of the donation, in
case of individuals or 5%, for corporations.

f the requirements are not complied with, the donation can still qualify as limited deduction in
amount not in excess of 10% for an individual donor, and 5% for a corporate donor, of the
donor’s income derived from trade, business or profession as computed without the benefit of
this deduction. Donations made by donor not engaged in trade, business or profession is not
deductible.
 BARANGAY : IRISAN
- - - -
CLASSI- 2ND REVISION
STREET/SUBDIVISION VICINITY FICATION ZV/SQ.M.
- - - -
NAGUILIAN ROAD BERMUDA PHIL ACETYL RR 1,150.00
BERMUDA SUBD RR 1,750.00
PHIL ACETYL IRISAN I 1,850.00
RR 900.00
IRISAN LIME TO BMS RR 900.00
LIME KILN KM 4 - KM 6 RR 750.00
PMS TO LAMTANG CITY RR 800.00
SAN CARLOS HTS SUBD NAGUILIAN ROADS RR 1,750.00
ALL OTHER STREETS RR 650.00
GP 450.00
DEPARTMENT ORDER NO. 17-98
FEBRUARY 2, 1998
RDO No. 8 – Bagiuo City

Revenue Region 2 - CAR