During this COVID-19 Enhanced Community Quarantine (ECQ), the government issued a memorandum for the taxpayers who will be the filing of returns paying their taxes will be allowed to pay at the nearest Authorized Agent Banks. They can directly file or pay to the concerned Revenue Collection Officers (RCOs) of the nearest Revenue District Office (RDO) even the availability of AABs.
In case of payment on cash, it should not exceed twenty-thousand pesos unless checks issued for payment. The check 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. Donations 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) those who are extending credits including those micro-lending and those who obtained from pawnshops (RR 8-2020).
Requisites for Deductions
1. To claim the deductions to the gross income, the donor must donate to these following organizations or agencies as a recipient.
- National Government or any entity created by any of its agencies which is not profit, or to any political subdivision including a fully-owned government corporation must be one of those recipients.
- Accredited non-stock, non-profit educational and or charitable, religious cultural or social welfare corporation, institution, foundation, non-government organization, trust, or philanthropic organization.
2. Secure needed documents during. To the recipient must have the deed of donations or certificate of donations 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 include 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 be exempted also 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 secure those supporting documents to benefits from what you have done.