During the period of the Enhanced Community Quarantine (ECQ), the BIR issued the Revenue Regulation No. 9-2020, which implements Section 4 (Z) and Section 4 (EE) of the Republic Act No. 11469, also known as the “Bayanihan to Heal as One Act”, by granting further benefits on donations.
RR 9-2020 provides full deductibility for specific donations and gifts and is exempt from donor’s tax under the law.
The following donations or gifts made for the sole and exclusive purpose of combating COVID 19 during the period of the state of national emergency under R.A. No. 11469, shall be considered fully deductible against the gross income of the donor-Corporation/donor-individual:
- Cash donations
- Donations of all critical or needed healthcare equipment or supplies.
- Relief goods such as but not limited to, food packs (rice, canned goods, noodles, etc) and water; and
- Use of property, whether real of personal (shuttle service, use of lots/buildings)
To be entitled for full deductibility, said donations shall be made to any of the following donees:
- 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; and
- Accredited non-stock or non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization.
In order to be fully deductible and allowable as an expense against the gross income of the donor-Corporation and/or donor individual, said exempt donations/gifts shall be supported by the following documents:
| Donee-Recipient | Supporting Document |
| 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. | Deed of Donation |
| Accredited non-stock or non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization. | Certificate of Donation (BIR Form 2322) |
Mentioned above, when made during the period of state national emergency, for the sole and exclusive purpose of combating COVID 19, shall also be considered as exempt donations/gifts and full deductible against gross income, when given to the following donees:
- Private hospitals and/or non-stock non-profit educational and/or charitable religious, cultural or social welfare corporation, institution, foundation, non-government organization (even if not accredited), trust or philanthropic organization and/or research institution or organization;
- Local private corporation, civic organizations, and/or international organizations/institutions provided that they shall (1) actually, directly and exclusively distribute and/or transfer said donations/gifts to, and/or (2) 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.
Donations made under above mentioned, shall only be considered from donor’s tax and fully deductible when the requirements for documentation below are complied with:
| Donee-Recipient | Documentary Requirements for Donee-Recipient | Documentary Requirements for Donor |
| Accredited non-stock, non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization 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 orgaization |
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| 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 |
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These documentary requirements shall be submitted to the respective Revenue District Office (RDO) where the donor and the donee-recipient are registered in accordance with the form attached within sixty (60) days from lifting of the Enhance Community Quarantine (ECQ).
These regulations took effect on March 16, 2020 upon issuance of Presidential Proclamation No. 929 and shall be in full force only during the three (3) month effectivity of R.A. No. 11469, otherwise known as the “Bayanihan to Heal as One Act’, unless extended or withdrawn by Congress or ended by Presidential Proclamation.
