Gov't waives donor's tax on PPE, medical supplies for COVID-19 response

The Philippine government has waived donor's tax on imported personal protective equipment (PPE) and medical supplies essential for the COVID-19 response.

This tax exemption is in line with the Bayanihan to Heal as One Act, which grants the President additional powers to combat the pandemic.

The Bureau of Internal Revenue (BIR) issued Revenue Regulation No. 6-2020, which outlines these tax benefits.

Exemptions also cover import duties, value-added tax (VAT), excise taxes, and other fees for PPEs, COVID-19 test kits, medical equipment, and medicines identified by the Department of Health (DOH).

To expedite the release of these vital supplies from ports, the BIR has also granted an exemption from the authority to release imported goods (Atrig).

Donations of these imported items to the national government, non-profit government agencies, or political subdivisions are exempt from donor's tax, with deductibility subject to existing rules.