During this COVID-19 Enhanced Community Quarantine (ECQ), the government issued a memorandum for the taxpayers filing of returns paying their taxes to pay at the nearest Authorized Agent Banks. They can directly file or deliver to the concerned Revenue Collection Officers (RCOs) of the most immediate Revenue District Office (RDO) even the availability of AABs.
In cash payment, it should not exceed twenty-thousand pesos unless checks issued for the amount. The bill issued must be payable to the Bureau of Internal Revenue, not to the AAB branch. (RMC 43-2020)
"Bayanihan to Heal as One Act"
To combat the spread of this COVID-19, the government issued Republic Act No. 11469 known as “Bayanihan to Heal as One Act”. This RA No. 11469 includes the full deductibility of donations against the gross income of the donor that is also exempted from the donor’s tax law.
These donations include cash, healthcare equipment or supplies, relief goods and water, use of a property (real or personal). Any donations solely or exclusively to fight COVID-19 can be claimed as deductions. Contributions of any kind will not be subject to VAT; however, any input VAT to such donated item can be deducted from the output tax.
This RA exempts Documentary Stamp Tax (DST) for extending credits, including those micro-lending and those obtained from pawnshops (RR 8-2020).
Requisites for Deductions
1. To claim the deductions to the gross income, the donor must donate to the following organisations or agencies as a recipient.
- National Government or any entity created by any of its agencies that does not profit or any political subdivision, including a fully-owned government corporation, must be one of those recipients.
- They are accredited non-stock, non-profit educational and or charitable, religious, cultural or social welfare corporation, institution, foundation, non-government organisation, trust, or philanthropic organisation.
2. Secure needed documents. The recipient must have the deed of donations or certificate of offerings using the BIR form 2322. A donor must have these documents.
- First, Sworn Certification. President or authorized person who executed this document. The details must include the name of the done, date of donation, the amount or value. In addition, it should also have that this donation is to fight COVID-19.
- Second, Acknowledgment Receipt from the BIR.
- Lastly, Proof of purchase if the receipt is local private corporations or internal organizations that partner to serve as a conduit with accredited NGOs.
Exemptions of Imported Items (RR 6-2020)
a. Importation of critical or needed healthcare equipment or supplies intended to combat the COVID-19 public health emergency.
b. Importation of needed materials to make health equipment and supplies shall also be exempted from Value-added Tax (VAT), excise tax, and other fees. These items imported must be on the master list of the Department of Trade and Industry to be exempted.
All of us play a vital role in fighting this COVID-19. Above all, those who want to donate either cash or non-cash to the government make sure to provide supporting documents to qualify. Find out more on how to minimize your taxes legally.