1. When is a Notice of Donation needed?
Section 13 (C) of Revenue Regulations (RR) No. 02-2003, as amended provides that a Notice of
Donation is required to be submitted to the Revenue District Office (RDO) having jurisdiction over
the Donor’s place of business within thirty (30) days after the receipt of the accredited non-stock,
non-profit corporation/NGO institution’s (qualified donee institution’s) Certificate of Donation,
which shall be attached to said Notice of Donation stating that not more than thirty percent (30%)
of the said donation/gifts for the taxable year shall be used by such qualified donee institution for
administration purposes pursuant to the provisions of Section 101 (A) (2) and (B) (2) of the Tax
Code.
2. What are the repercussions for not complying with the Notice of Donation?
Section 15 (C) of RR No. 12-2018 provides that where a Notice of Donation is required, among
others, non-submission of the same may disqualify the Donor from availing of the Donor’s Tax
exemption, as well as claiming full deduction for Income Tax of the subject donation.
3. List of Documentary Requirements
Donee- Documentary Requirements Legal Bases
recipient
Government Certificate of Donation (BIR Form No. Guidelines and Instructions
2322) for Donor’s Tax Return (BIR
Proof of donation (i.e., Duly notarized Form No. 1800); RMC No.
Deed of Donation); Proof of exemption 086-14
(Certification from the donee to such BIR Ruling Nos. 499-11,
effect) 003-01, etc.
Certification issued by NEDA1 as proof
that the undertaken priority activity for Section 34 (H)(2)(a) of the
which the donation shall be used is Tax Code; BIR Ruling No.
covered by NEDA’s Annual National 005-03
Priority Plan
Accredited In general
NGOs Certificate of Donation (BIR Form No. Sec. 5 of RR No. 13-98
2322) Sec. 13 (C) of RR No. 2-03
Notice of Donation (for donations worth Sec. 6 of RR No. 13-98
at least ₱50,000.00)
Other proof of actual receipt by the BIR NEDA Regulations No.
donee of the donation containing the 1-81; Sec. 8 of RR No. 13-
date of receipt thereof, and the amount 98; BIR Ruling No. 435-12
of donation
Proof of utilization by the donee of the
donation (Annual Information Report
attached to the ITR, as authorized by the BIR NEDA Regulations No.
Institution or Association) 1-81
Duly notarized original Special Power of
Attorney (SPA) for the transacting party
if the signatory is not one of the parties Guidelines and Instructions
to the Deed of Donation for Donor’s Tax Return (BIR
Form No. 1800)
Additional requirements: RR No. 13-98
1
NEDA – National Economic Development Authority
Donee- Documentary Requirements Legal Bases
recipient
Educational
AOI2 certified by the SEC3
Charitable
AOI certified by the SEC
Valid Certification from DSWD4
Valid Certificate of Accreditation
from PCNC5
Valid BIR Certificate of Donee
Institution Status
Religious, Cultural or Social Welfare,
Research
AOI certified by the SEC
Valid Certificate of Accreditation
from PCNC
Valid BIR Certificate of Donee
Institution Status
Taxable [Additional 2 photocopies of each document] Guidelines and Instructions
entities Duly notarized original Deed of Donation for Donor’s Tax Return (BIR
Proof of claimed tax credit, if applicable Form No. 1800)
Duly notarized original SPA for the
transacting party if the signatory is not
one of the parties to the Deed of
Donation
Filed Donor’s Tax return and proof of
payment [i.e., original Official Receipt
(OR)/Deposit Slip]; for no-payment
returns, copy of the AR of the filed
Donor’s Tax return
For real properties: [additional 2
photocopies of each document]
Certified true copy(ies) of the
Original/Transfer/Condominium
Certificates of Title of the donated
property, where applicable
Certified true copy(ies) of the Tax
Declaration at the time or nearest to the
date of transaction issued by the Local
Assessor’s Office for land and
improvement, where applicable
Certificate of No Improvement issued by
the Assessor’s Office, where applicable
For personal properties: [additional 2
photocopies of each document]
Proof of valuation at the time of
donation, as may be applicable [i.e.,
Audited Financial Statements (AFS)
2
AOI – Articles of Incorporation
3
SEC – Securities and Exchange Commission
4
DSWD – Department of Social Welfare and Development
5
PCNC – Philippine Council for NGO Certification; Reference: RR no. 13-98
Donee- Documentary Requirements Legal Bases
recipient
nearest to the date of donation with the
computation of the book value of the
personal property]
Proof of claimed deductions, where
applicable
Certificate of
deposit/investment/indebtedness/stocks
for donated cash or securities, where
applicable
Certificate of registration of motor
vehicle, where applicable
4. List of documentary requirements to claim deduction for Income Tax purposes on
donations to qualified donees
Donee- Documentary Legal Bases Deductibility
recipient Requirements
Government Certificate of Donation Guidelines and Subject to full deduction from
(BIR Form No. 2322) Instructions for the corporate donor’s taxable
Proof of donation (i.e., Donor’s Tax Return income
Duly notarized Deed of (BIR Form No.
Donation); Proof of 1800); RMC No. Donation not in accordance
exemption (Certification 086-14 with the annual priority plan is
from the donee to such BIR Ruling Nos. subject to 5% limited
effect) 499-11, 003-01, etc. deduction from the corporate
Certification issued by Section 34 (H)(2)(a) donor’s taxable income as
NEDA as proof that the of the Tax Code; computed after expenses
undertaken priority BIR Ruling No. 005- arising from trade, business, or
activity for which the 03 profession have been
donation shall be used deducted, but before any
is covered by NEDA’s deductions (full or partial)
Annual National Priority arising from donations are
Plan made
Accredited In general Subject to 5% limited
NGOs Certificate of Donation Sec. 5 of RR No. 13- deduction from the corporate
(BIR Form No. 2322) 98 donor’s taxable income as
Other proof of actual Sec. 13 (C) of RR computed after expenses
receipt by the donee of No. 2-03 arising from trade, business, or
the donation containing BIR NEDA profession have been
the date of receipt Regulations No. 1- deducted, but before any
thereof, and the amount 81; Sec. 8 of RR No. deductions (full or partial)
of donation 13-98; BIR Ruling arising from donations are
Proof of utilization by the No. 435-12 made
donee of the donation
(Annual Information Submission of ALL supporting
Report attached to the BIR NEDA documents shall entitle the
ITR, as authorized by Regulations No. 1- corporate donor to a full
the Institution or 81 deduction of the donation from
Association) its taxable income
Valid Certificate of
Accreditation from
PCNC
Valid BIR Certificate of
Donee Institution Status
AOI certified by the SEC
Duly notarized original
Donee- Documentary Legal Bases Deductibility
recipient Requirements
Special Power of
Attorney (SPA) for the
transacting party if the
signatory is not one of
the parties to the Deed
of Donation
5. When is deed of donation needed?
Based on the various rulings issued by the BIR (BIR Ruling Nos. 499-11, 003-01, 005-03, etc.)
and the Guidelines and Instructions for Donor’s Tax Return (BIR Form No. 1800) found on the
BIR website, the Deed of Donation shall be submitted independently of the transacting party (i.e.,
taxable or exempt person) as proof of the donation. However, should the same be unavailable,
any equivalent agreement/document would be sufficient.
