TAX DEDUCTIBLE EXPENSES

I.) Donations to Accredited Donee- Institutions is

deductible in full.

Charitable contributions to a FOUNDATION that is

duly accredited by the Bureau of Internal Revenue (BIR) as
a donee institution is deductible in full.

For donations to non-accredited donee institutions, the

tax rules provides a limit of not more than 5% for
corporations or 10% for individual taxpayers based on the
taxable net income before such donation. As such, the catch
is to make donations to accredited donee institutions to
enjoy the 100% tax deductions.

Notably, direct donations of private companies are at

risk for documentation issues and thus, prone for tax
exposures. Thus, it is apparently better for companies to
use “Foundations” in the implementation of CORPORATE
SOCIAL RESPONSIBILITY (CSR) programs. Under this,
private companies will be able to see to it that the donations
are properly documented with official receipts issued by the
Foundation, a Certificate of Donation issued, and other
technical requirements be complied with for tax deduction
and exemptions purposes. Therefore, it could enjoy 100%
tax benefits.