City hall donor can deduct gift from  gross income – BIR

July 24, 2017 at 7:55 am Leave a comment

By Mortz C. Ortigoza

 DAGUPAN CITY – The donor of the property for the planned city hall can deduct his donation from his taxable gross income, according to a high official of the Bureau of Internal Revenue.

CPA-Lawyer Maria Isabel B. Utit, chief of the BIR in Eastern Pangasinan, said the National Internal Revenue Code (NIRC) provides that contribution to the government political subdivision is deductible in full.

“Contributions or gifts actually paid or made within the taxable year to, or for the use of the government of the Philippines or any of its agencies or any political subdivision thereof exclusively for public purposes,” she quoted parts of  Paragraph H Section 34 of the Nantional Internal Revenue Code (NIRC).

This means that the property price can be deducted from gross income of donors like Kerwin Fernandez.

 This law, according to Utit, was hammered by Congress to encourage citizens to donate to the government.

She said that the land where the ritzy BIR’s Revenue District Office-6 was donated by businessman Ernesto Go of Urdaneta City.

Many government lands in this city where government buildings are located were donated by residents.

According to Councilor Jeslito Seen benevolent families like the De Venecias, Fernandezes, Reynas, Decanos, Oviedos, Llamases, Calimlims, Samsons, and other families donated the plaza, market, roads, highways, schools, and the old city hall .

“Iyan ang pinag umpisahan ng Dagupan kung bakit siya umunlad. Kung saan wala, nagkaroon ng simbahan, kung saan wala, nagkaroon ng ospital. Kung saan wala, nagkaroon tayo ng plaza, kung saan wala, nagkaroon tayo ng munisipyo,” the lawmaker stressed.

Assistant Revenue District Office-4 Chief Trina Villamil said Fernandez, the donor of the 1.2 hectare lot in Pantal-Lucao Road, will not be paying the donor tax as mandated by the NIRC.

Villamil said  Paragraph 2 Section 101 of the NIRC cited the exemptions of certain gifts.

 “Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government,” the Code says.

The BIR usually taxes by 30 percent the value of the donation or gift given by the donor to donee if they are not relatives up to the fourth degree of consanguinity or first cousins.


Entry filed under: News.

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