1. When is a Notice of Donation needed?

Section 13 (C) of Revenue Regulations (RR) No. 02-2003, as amended provides that a Notice of
Donation is required to be submitted to the Revenue District Office (RDO) having jurisdiction over
the Donor’s place of business within thirty (30) days after the receipt of the accredited non-stock,
non-profit corporation/NGO institution’s (qualified donee institution’s) Certificate of Donation,
which shall be attached to said Notice of Donation stating that not more than thirty percent (30%)
of the said donation/gifts for the taxable year shall be used by such qualified donee institution for
administration purposes pursuant to the provisions of Section 101 (A) (2) and (B) (2) of the Tax
Code.

2. What are the repercussions for not complying with the Notice of Donation?

Section 15 (C) of RR No. 12-2018 provides that where a Notice of Donation is required, among
others, non-submission of the same may disqualify the Donor from availing of the Donor’s Tax
exemption, as well as claiming full deduction for Income Tax of the subject donation.

3. List of documentary requirements to support donations

Donee- Documentary Requirements Legal Bases

recipient
Government  Certificate of Donation (BIR Form No.
2322)
 Proof of donation (i.e., Duly notarized
Deed of Donation); Proof of exemption
(Certification from the donee to such
effect)
 Certification issued by NEDA1 as proof
that the undertaken priority activity for
which the donation shall be used is
covered by NEDA’s Annual National
Priority Plan
Accredited In general
NGOs  Certificate of Donation (BIR Form No.
2322)
 Notice of Donation (for donations worth
at least ₱50,000.00)
 Other proof of actual receipt by the
donee of the donation containing the
date of receipt thereof, and the amount
1
NEDA – National Economic Development Authority
Guidelines and Instructions
for Donor’s Tax Return (BIR
Form No. 1800); RMC No.
086-14
BIR Ruling Nos. 499-11,
003-01, etc.
Section 34 (H)(2)(a) of the
Tax Code; BIR Ruling No.
005-03
Sec. 5 of RR No. 13-98
Sec. 13 (C) of RR No. 2-03
Sec. 6 of RR No. 13-98
BIR NEDA Regulations No.
1-81; Sec. 8 of RR No. 13-
98; BIR Ruling No. 435-12
 Donee- Documentary Requirements Legal Bases
recipient
of donation
 Proof of utilization by the donee of the
donation (Annual Information Report
attached to the ITR, as authorized by the BIR NEDA Regulations No.
Institution or Association) 1-81
 Duly notarized original Special Power of
Attorney (SPA) for the transacting party
if the signatory is not one of the parties Guidelines and Instructions
to the Deed of Donation for Donor’s Tax Return (BIR
Form No. 1800)
Additional requirements: RR No. 13-98
Educational
 AOI2 certified by the SEC3
Charitable
 AOI certified by the SEC
 Valid Certification from DSWD4
 Valid Certificate of Accreditation
from PCNC5
 Valid BIR Certificate of Donee
Institution Status
Religious, Cultural or Social Welfare,
Research
 AOI certified by the SEC
 Valid Certificate of Accreditation
from PCNC
 Valid BIR Certificate of Donee
Institution Status
Taxable [Additional 2 photocopies of each document] Guidelines and Instructions
entities  Duly notarized original Deed of Donation for Donor’s Tax Return (BIR
 Proof of claimed tax credit, if applicable Form No. 1800)
 Duly notarized original SPA for the
transacting party if the signatory is not
one of the parties to the Deed of
Donation
 Filed Donor’s Tax return and proof of
payment [i.e., original Official Receipt
(OR)/Deposit Slip]; for no-payment
returns, copy of the AR of the filed
Donor’s Tax return

For real properties: [additional 2

photocopies of each document]
 Certified true copy(ies) of the
Original/Transfer/Condominium
Certificates of Title of the donated
property, where applicable
 Certified true copy(ies) of the Tax
Declaration at the time or nearest to the
2
AOI – Articles of Incorporation
3
SEC – Securities and Exchange Commission
4
DSWD – Department of Social Welfare and Development
5
PCNC – Philippine Council for NGO Certification; Reference: RR no. 13-98
 Donee- Documentary Requirements Legal Bases
recipient
date of transaction issued by the Local
Assessor’s Office for land and
improvement, where applicable
 Certificate of No Improvement issued by
the Assessor’s Office, where applicable

For personal properties: [additional 2

photocopies of each document]
 Proof of valuation at the time of
donation, as may be applicable [i.e.,
Audited Financial Statements (AFS)
nearest to the date of donation with the
computation of the book value of the
personal property]
 Proof of claimed deductions, where
applicable
 Certificate of
deposit/investment/indebtedness/stocks
for donated cash or securities, where
applicable
 Certificate of registration of motor
vehicle, where applicable

4. List of documentary requirements to claim deduction for Income Tax purposes on

donations to qualified donees

Donee- Documentary Legal Bases Deductibility

recipient Requirements
Government  Certificate of Donation
(BIR Form No. 2322)
 Proof of donation (i.e.,
Duly notarized Deed of
Donation); Proof of
exemption (Certification
from the donee to such
effect)
 Certification issued by
NEDA as proof that the
undertaken priority
activity for which the
donation shall be used
is covered by NEDA’s
Annual National Priority
Plan
Accredited In general
NGOs  Certificate of Donation
(BIR Form No. 2322)
 Other proof of actual
receipt by the donee of
the donation containing
the date of receipt
thereof, and the amount
of donation
 Proof of utilization by the
donee of the donation
Guidelines and Subject to full deduction from
Instructions for the corporate donor’s taxable
Donor’s Tax Return income
(BIR Form No.
1800); RMC No. Donation not in accordance
086-14 with the annual priority plan is
BIR Ruling Nos. subject to 5% limited
499-11, 003-01, etc. deduction from the corporate
Section 34 (H)(2)(a) donor’s taxable income as
of the Tax Code; computed after expenses
BIR Ruling No. 005- arising from trade, business, or
03 profession have been
deducted, but before any
deductions (full or partial)
arising from donations are
made
Subject to 5% limited
Sec. 5 of RR No. 13- deduction from the corporate
98 donor’s taxable income as
Sec. 13 (C) of RR computed after expenses
No. 2-03 arising from trade, business, or
BIR NEDA profession have been
Regulations No. 1- deducted, but before any
81; Sec. 8 of RR No. deductions (full or partial)
13-98; BIR Ruling arising from donations are
No. 435-12 made
 Donee- Documentary Legal Bases Deductibility
recipient Requirements
(Annual Information Submission of ALL supporting
Report attached to the BIR NEDA documents shall entitle the
ITR, as authorized by Regulations No. 1- corporate donor to a full
the Institution or 81 deduction of the donation from
Association) its taxable income
 Valid Certificate of
Accreditation from
PCNC
 Valid BIR Certificate of
Donee Institution Status
 AOI certified by the SEC
 Duly notarized original
Special Power of
Attorney (SPA) for the
transacting party if the
signatory is not one of
the parties to the Deed
of Donation

5. When is deed of donation needed?

Based on the various rulings issued by the BIR (BIR Ruling Nos. 499-11, 003-01, 005-03, etc.)
and the Guidelines and Instructions for Donor’s Tax Return (BIR Form No. 1800) found on the
BIR website, the Deed of Donation shall be submitted independently of the transacting party (i.e.,
taxable or exempt person) as proof of the donation. However, should the same be unavailable,
any equivalent agreement/document would be sufficient.