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Batas Pambansa Bilang 45
AN
ACT AMENDING PARAGRAPH (h) OF SECTION 30 OF THE NATIONAL INTERNAL
REVENUE
CODE OF 1977, AS AMENDED, AND FOR OTHER PURPOSES.
chan
robles
virtual law library
BATAS
PAMBANSA BILANG 45AN
ACT AMENDING PARAGRAPH (h) OF SECTION 30 OF THE NATIONAL INTERNAL
REVENUE
CODE OF 1977, AS AMENDED, AND FOR OTHER PURPOSES.chan
robles
virtual law library
chanrobles virtual law librarySection
1. Paragraph (h) of Section
30 of the National Internal Revenue Code is hereby amended to read as
follows:chanroblesvirtuallawlibrary
"(h) Charitable
and other contributions. —chanrobles virtual law library
"(1) In
General. — Contributions or gifts actually paid or made within the
taxable
year to or for the use of the Government of the Philippines or any of
its
agencies or any political subdivision thereof for exclusively public
purposes,
or to domestic corporations or associations organized and operated
exclusively
for religious, charitable, scientific, youth and sports development,
cultural
or educational purposes of for the rehabilitation of veterans, or to
social
welfare institutions, no part of the net income of which inures to the
benefit of any private stockholder or individual to an amount not in
excess
of six per centum in the case of an individual, and three per centum in
the case of a corporation, of the taxpayer's taxable net income as
computed
without the benefit of this and the following subparagraph.
"(2) Contributions
deductible in full. — Notwithstanding the provisions of the preceding
subparagraph,
donations to the following institutions or entities shall be deductible
in full:chanroblesvirtuallawlibrarychanrobles virtual law library
"(A) Donations
to the Government. — Donations to the Government of the Philippines or
to any of its agencies or political subdivisions, including fully owned
government corporations exclusively to finance, to provide for, or to
be
used in undertaking priority activities in education, health, youth and
sports development, human settlements, science and culture, and in
economic
development according to a national priority plan to be determined by
the
NEDA, in consultation with appropriate government agencies, including
its
regional development councils, and private philanthropic persons and
institutions:
Provided, however, That any donation which is made to the Government or
to any of its agencies or political subdivisions not in accordance with
the said annual priority plan shall be subject to the limitations
prescribed
in subparagraph (1) of this Section.chanrobles virtual law library
"(B) Donations
to certain foreign institutions or international organizations. —
Donations
to foreign institutions or international organizations which are fully
deductible in pursuance of or in compliance with agreements, treaties,
or commitments entered into by the Government of the Philippines and
the
foreign institutions or international organizations or in pursuance of
special laws.chanrobles virtual law library
"(C) Donations
to certain private foundations. — The term "private foundation" means a
non-profit domestic corporation:chanroblesvirtuallawlibrarychanrobles virtual law library
(i) Organized
and operated exclusively for scientific, research, educational,
character-building
and youth and sports development, health, social welfare, cultural or
charitable
purposes, or a combination thereof, no part of the net income of which
inures to the benefit of any private individual;chanrobles virtual law library
(ii) Which,
not later than the 15th day of the third month after the close of the
foundation's
taxable year in which contributions are received, makes utilization
directly
for the active conduct of the activities constituting the purpose or
function
for which it is organized and operated, unless an extended period is
granted
by the Minister of Finance in accordance with the rules and regulations
to be promulgated under Section 2 hereof;chanrobles virtual law library
(iii) The
level of administrative expense of which shall on an annual basis
conform
with the rules and regulations to be prescribed by the Minister of
Finance
but in no case to exceed 30 per cent of total expenses;chanrobles virtual law library
(iv) The
assets of which is the event of dissolution would be distributed to
another
non-profit domestic corporation organized for similar purpose or
purposes,
or to the State for public purpose, or would be distributed by a court
to another organization to be used in such manner as in the judgment of
said court will best accomplish the general purposes for which the
dissolved
organization was organized. "Subject
to such terms and conditions as may be prescribed by the Minister of
Finance,
the term "utilization" means:chanroblesvirtuallawlibrarychanrobles virtual law library
(i) any
amount in cash or in kind (including administrative expenses) paid or
utilized
to accomplish one or more purposes for which the private foundation was
created or organized.
(ii) Any
amount paid to acquire an asset used (or held for use) directly in
carrying
out one or more purposes for which the foundation was created or
organized.chanrobles virtual law library "An
amount set aside for a specific project which comes within one or more
purposes of the foundation may be treated as a utilization, but only
if,
at the time such amount is set aside, the private foundation
establishes
to the satisfaction of the Commissioner of Internal Revenue that the
amount
will be paid for the specific project within a period to be prescribed
in regulations to be promulgated by the Minister of Finance, but not to
exceed 5 years, and the project is one which can be better accomplished
by setting aside such amount than by immediate payment of funds. The
Minister
of Finance shall promulgate rules and regulations to implement this
subparagraph.chanrobles virtual law library "(3) Valuation.
— Properties other than cash donated shall be valued in accordance with
the rules and regulations prescribed by the Minister of Finance in
consultation
with the appropriate government agencies.chanrobles virtual law library
"(4) Proof
of deductions. — Contributions or gifts shall be allowable as deduction
only if verified under the regulations prescribed by the Minister of
Finance."chanrobles virtual law library
Sec.
2. Implementing regulations.
— The Minister of Finance shall, within 90 days after approval of this
Act, after consultation with the appropriate government agencies,
promulgate
rules and regulations to implement the provisions of this Act
consistent
with national socio-economic development programs.chanrobles virtual law library
Sec.
3. Transitory provisions.
— All organizations or institutions which are qualified donees for
purposes
of the full deductibility of charitable contributions either under the
National Internal Revenue Code of 1977 or under special laws shall
apply
for re-qualification with the Commissioner of Internal Revenue within
the
period provided by the implementing regulations, and all donations to
such
organizations or institutions during the period for re-qualification as
donees for full deductibility of charitable contributions thereto under
this Act shall be allowed.chanrobles virtual law library
Sec.
4. Repealing clause. —
The provisions of any general or special law allowing full
deductibility
of donations to any institution or entity (except donations made under
Presidential Decrees Nos. 697 and 698) or allowing deduction of any
investment
for the purchase of cultural properties are hereby repealed or modified
accordingly.chanrobles virtual law library
Sec.
5. Effectivity. — This
Act shall take effect upon its approval.chanrobles virtual law library
Approved:
December 18, 1979
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