Issuing authority and legal basis
- The President issues Proclamation No. 872 by virtue of the power vested in the President “by law.”
- The proclamation expressly makes the tax treatment of donations subject to the Tax Reform Act of 1997.
Policy and purpose statement
- Proclamation No. 872 is issued to support the hosting of the 23rd Southeast Asian Games to be held in the Philippines in 2005.
- PHILSOC is described as established and registered under Philippine law for the purpose of hosting the 23rd Southeast Asian Games.
- The proclamation links national fundraising to obtaining the financial and moral support of the public to ensure the success of the Games.
Authority granted for fundraising
- Proclamation No. 872 authorizes PHILSOC to conduct a nationwide fund raising program.
- The fundraising authorization covers the timeframe June to November, 2005.
- The proclamation calls on citizens, residents, and entities to assist by giving “generously” and by actively supporting the fundraising effort of PHILSOC.
Donor tax incentives and deductions
- Proclamation No. 872 provides that, subject to the specific provisions of the Tax Reform Act of 1997, donations and contributions made by private citizens, residents, and entities to PHILSOC are exempt from income tax and gift taxes.
- Proclamation No. 872 provides that these donations and contributions constitute allowable deductions in full from the income of the donors and contributors for income tax purposes.
- The tax exemption and deduction benefit applies to donations and contributions made to PHILSOC.
Entities covered and fundraising beneficiaries
- The proclamation grants authority specifically to PHILIPPINE SEA GAMES ORGANIZING COMMITTEE FOUNDATION, INC. (PHILSOC).
- The fundraising is for the hosting of the 23rd Southeast Asian Games in the Philippines in 2005.
Effect on taxes and required conformity
- Donors must benefit under the tax rules subject to the specific provisions of the Tax Reform Act of 1997.
- The proclamation’s tax benefit is tied to donations and contributions made to PHILSOC.
Promulgation and signatures
- Proclamation No. 872 is signed by GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines.
- EDUARDO R. ERMITA signs as Executive Secretary on behalf of the President.