BIR allows tax deduction for COVID-19 donations

The Bureau of Internal Revenue (BIR) has announced that donations in cash or in kind to entities combating COVID-19 are fully deductible from the donors' gross income.

This provision, outlined in Revenue Regulations No. 9, also allows for the crediting of input value-added tax attributable to such donations.

The tax exemption covers a range of donations, including cash, personal protective equipment, testing kits, food items, and the use of private buildings and shuttle buses for COVID-19 related purposes.

To claim these deductions, corporations and individuals must submit supporting documents such as invoices, deeds of donation, and certificates of donation using BIR Form No. 2322.

The BIR will conduct audits to verify the authenticity of these donations.

Foreign donors are exempt from the same documentation requirements.

These regulations are effective for three months from March 16, coinciding with the national emergency proclamation, unless extended.