Pursuant to Republic Act (RA) No. 9999, also known as “Free Legal Assistance Act of 2010”, a practicing lawyer or professional partnerships rendering actual free legal services, as defined by the Supreme Court, shall be entitled to Incentives.
On September 13, 2022, the Bureau of Internal Revenue (BIR) issued Revenue Regulation No. 12-2022 to prescribe a more clear and concise guidelines for the availment of these incentives.
Those covered by RA No. 9999 shall be entitled to the following Special Allowable Itemized Deductions from the Gross Income equivalent to whichever is LOWER between:
- Amount that could have been collected for the actual free legal services; or
- 10% of the Gross Income derived from the actual performance of legal profession.
Note that the actual free legal services shall be exclusive of the yearly minimum 60-hour mandatory legal aid services rendered to indigent and pauper litigants.
Requirements to avail the Incentives:
For Individual Lawyers
- Certification from the Public Attorney’s Office (PAO), the Department of Justice (DOJ), or accredited association of the Supreme Court indicating that the:
- Legal Services provided are within the services defined by the Supreme Court;
- Agencies cannot provide the legal services to be provided by the private counsel; and
- Legal Services were actually undertaken.
- Accomplished BIR Form No. 1701
For General Professional Partnerships
- Certification from the Public Attorney’s Office (PAO), the Department of Justice (DOJ), or accredited association of the Supreme Court indicating that the:
- Legal Services are within the services defined by the Supreme Court;
- Agencies cannot provide the legal services to be provided by the private counsel; and
- Legal Services were actually undertaken.
- Accomplished BIR Form No. 1702 EX
- Sworn Statement of the Lawyer or managing partner as to the amount that could have been collected for the actual free legal service.
The Certification from the association and/or organization duly accredited by the Supreme Court shall specify the number of hours actually provided by the lawyer or professional partnership in the provision of the Legal Services.
