MTF Updates – BIR RR No. 9-2020 dated April 7, 2020

Dear Valued Clients and Friends,

We are sending to you a copy of Bureau of Internal Revenue (BIR) Revenue Regulation (RR) No. 9-2020 dated April 7, 2020, which implements Section 4 (Z) and Section 4 (EE) of Bayanihan to Heal as One Act by granting further benefits on donations during the period of Enhanced Community Quarantine (ECQ) in relation to the National Internal Revenue Code (NIRC), as amended.

The following shall be fully deductible against gross income of the donor, when donation is given for the sole and exclusive purpose of combatting Covid-19 during the state of national emergency:

1. Cash donations;
2. Donations of all critical or needed healthcare equipment or supplies;
3. Relief goods and water; and
4. Use of property, whether real or personal (shuttle service, use of lots/buildings).

To be entitled to the full deductibility, the donation must be given to any of the following donees:

1. 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, including fully-owned government corporations;
2. Accreditedd non-stock, non-profit educational and/or charitable, religious, cultural or social welfare corporation, institution or philanthropic organization and/or research institution or organization;
3. 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 non-accredited), trust or philanthropic organization and/or research institution or organization; and
4. Local private corporations, civil organizations, and/or international organizations/institutions provided that they shall (1) actually, directly and exclusively distribute and/or transfer said donations to, and/or (2) partner as conduit/logistical machinery with, the accredited NGOs and/or national government or any entity created by any of it agencies which is not conducted for profit, or to any political subdivision of the said Government.

Furthermore, to avail of the said benefit, the donor and/or donee must submit supporting evidence (i.e. Deed of Donation, Certificate of Donation, Liquidation report) to the BIR within 60 days from the lifting of the ECQ.

Lastly, the donation of relief goods, water, or critical or needed healthcare equipment or supplies are not deemed sale subject to Value-Added Tax under Section 106 (B) of the NIRC.

bir-rr-no-9-2020

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