KIND OF TAX CHARITABLE RELIGIOUS NON-STOCK, PROPRIETARY PROPRIETARY GOVERNMENT GOVERNMENT GOVERNMENT

INSTITUTIONS INSTITUTIONS NON-PROFIT EDUCATIONAL HOSPITALS/CHARITABLE EDUCATIONAL AGENCY OWNED AND

(CI) (RI) EDUCATIONAL INSTITUTIONS HOSPITALS INSTITUTIONS (GA) CONTROLLED
INSTITUTIONS (PEI) (PH/CH) (GEI) CORPORATIONS
(NSNPEI) (GOCC)
REAL Property Property Property Property Property ACTUALLY, Property Property Property owned
PROPERTY ACTUALLY, ACTUALLY, ACTUALLY, ACTUALLY, DIRECTLY, EXCLUSIVELY owned by the owned by the by the PH Gov’t,
TAX DIRECTLY, DIRECTLY, DIRECTLY, DIRECTLY, (ADE) used for Charitable PH Gov’t, or PH Gov’t, or or Political
EXCLUSIVELY EXCLUSIVELY EXCLUSIVELY EXCLUSIVELY Purpose = EXEMPT Political Political Subdivisions =
(ADE) used for (ADE) used for (ADE) used for (ADE) used for NOT (ADE used) = Subdivisions = Subdivisions = EXEMPT
Charitable, Charitable, Educational Educational TAXABLE EXEMPT EXEMPT
Religious, Religious, Purpose = Purpose = Beneficial Use
Educational Educational EXEMPT EXEMPT Beneficial Use Beneficial Use pertains to a
Purpose = Purpose = NOT (ADE NOT (ADE pertains to a pertains to a Non-Exempt
EXEMPT EXEMPT used) = used) = Non-Exempt Non-Exempt Entity for
NOT (ADE NOT (ADE TAXABLE TAXABLE Entity for Entity for Consideration =
used) = used) = Consideration = Consideration = TAXABLE
TAXABLE TAXABLE TAXABLE TAXABLE
234 LGC B
CONSTI, 234 CONSTI, 234 Article XIV, CONSTI, 234 LGC 234 C
LGC B LGC B Section 4 (3) of LGC B 234 LGC A 234 LGC A
Constitution
INCOME TAX Income Income Income derived Subject to tax at preferential rate of 10% Income derived Income from Treated as
(AS SUCH derived by CI derived by RI by NSNPEI as If the related trade or activity exceeds 50% by GEI as such = the exercise of ordinary
INCOME) as such = NOT as such = NOT such = EXEMPT NOT TAXABLE any Essential corporations and
TAXABLE TAXABLE Income derived If unrelated trade or activity exceeds 50% = Gov’t Function subject to NIT of
from activities subject to 30% NIT tax on Corporations = Exempt 30%
conducted for
profit (ADE Except:
used) = GSIS;
EXEMPT SSS;
Income derived PHIC;
from activities Local Water
conducted for Sec. 30, I Districts.
Sec. 30, E Sec. 30, E profit (ADE Sec. 32,7, b Sec. 27 C
RENTAL Income Income used) = Income derived Income derived Income derived
INCOME derived from derived from EXEMPT Sec. 27 B from activities from activities from activities
(CONDUCTED activities activities conducted for conducted for conducted for
FOR PROFIT) conducted for conducted for NOTE: profit = profit = profit = TAXABLE
DEPOSITS profit = profit = Prove by: TAXABLE TAXABLE Income derived
(CONDUCTED TAXABLE TAXABLE Audited Sec 30, last Income derived from activities
FOR PROFIT; Statements; para. from activities conducted for
PASSIVE Income derived conducted for profit = TAXABLE
INCOME) WITHOUT from activities profit =
 PROOF of (ADE conducted for TAXABLE
used) = profit =
TAXABLE TAXABLE Sec. 27
De La Salle
Sec 30, last Sec 30, last Ruling: Sec. 30, Sec. 32,7, b
para. para. last para. of Sec 30, last
NIRC =N/A to para.
NSNPEI
Consti
DONATIONS Donations are income but these are NOT Operating Income = EXCLUDED Donations are income but these are NOT Operating
(Viewpoint of Income = EXCLUDED
the Recipient) Sec. 32, B, 3 Sec. 32,7, b
DONOR’S Gifts in favor of an educational and/or charitable, religious, cultural, social welfare corporation, Gifts made to or for the use of the Nat’l Gov’t or any
TAX/ ESTATE institution, accredited nongovernment organization, trust or philanthropic organization or research entity created by any of its agencies which is not
TAX institution if only 30% shall be used by done for administration purposes = EXEMPT from DONOR’s conducted for profit, or to any political subdivision =
(Viewpoint of TAX EXEMPT from DONOR’s TAX
the Donor) Sec 101 A 2 Sec 101 A 1

All bequests, legacies, devises or transfers to social welfare, cultural and charitable institutions All bequests, legacies, devises or transfers to or for the
which inures to the benefit of any individual = EXEMPT from ESTATE TAX use of the PH Gov’t or any political subdivision for
Sec 87, D exclusively public purpose = DEDUCTIBLE FROM
ESTATE tax.
Can be claimed as DEDUCTIONS. Sec 86, A, 6
34 H 1
CIE= NO TAX BENEFIT. Can be claimed as DEDUCTIONS.

SEP/SEI = CIE= NO TAX BENEFIT.

Individual = 10% Deduction of the Taxable Income; IF Donor gives to Priority Projects by NEDA:
Corp. = 5% Deduction of the Taxable Income;
SEP/SEI/MIE/Corp. = FULL AMOUNT DONATED is
DEDUCTIBLE provided:

Donor gives to NOT to Priority Projects, but in

GENERAL:
SEP/SEI/MIE/Corp =
Individual = 10% Deduction of the Taxable
Income.
Corp = 5% Deduction of the Taxable Income.