Question & AnswerQ&A (BATAS PAMBANSA BLG. 45)
Contributions or gifts made within the taxable year to or for the use of the government or certain domestic corporations or associations organized exclusively for specified public purposes are deductible up to 6% of taxable net income for individuals and 3% for corporations.
Donations to the Government of the Philippines or its agencies for priority activities as determined by NEDA, donations to foreign institutions or international organizations under treaties or laws, and donations to qualified private foundations are deductible in full.
Religious, charitable, scientific, youth and sports development, cultural or educational purposes, rehabilitation of veterans, and social welfare institutions not benefiting private individuals.
A non-profit domestic corporation organized and operated exclusively for specified purposes like scientific research, education, social welfare, charitable works, or youth and sports development, with no part of income inuring to private individuals.
Administrative expenses must not exceed 30% of total expenses annually according to rules prescribed by the Minister of Finance.
Assets must be distributed to another nonprofit domestic corporation with similar purposes, to the State for a public purpose, or by court order to an organization that will accomplish similar general purposes.
They shall be valued according to rules and regulations prescribed by the Minister of Finance in consultation with appropriate government agencies.
They must be verified under regulations prescribed by the Minister of Finance.
The Minister of Finance shall promulgate rules and regulations for implementation, set administrative expense limits, valuation rules, and oversee utilization requirements for private foundations.
The Act takes effect upon its approval, which is December 18, 1979.