Exempting Donations And/Or Contributions And Request To Social Welfare, Cultural And Charitable Institutions From Certain Taxes And Provincial Tax Allowance Therefor

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 507 July 16, 1974

EXEMPTING DONATIONS AND/OR CONTRIBUTIONS AND REQUEST TO SOCIAL WELFARE, CULTURAL AND CHARITABLE INSTITUTIONS FROM CERTAIN TAXES AND PROVINCIAL TAX ALLOWANCE THEREFOR

WHEREAS, non-profit social welfare, cultural and charitable institutions operate generally on funds generated through donations;

WHEREAS, these non-profit institutions are viable instruments for social welfare and cultural development of the country;

WHEREAS, the success of the mission of these institutions depends largely on the sufficiency of their financial resources; and

WHEREAS, it is necessary to encourage donations to these institutions in order to enable them to acquire the necessary funds for their continue operations.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:

Section 1. Any provision of law, decree, rules and regulations to the contrary notwithstanding, all gifts, bequests, donations and/or contributions to social welfare, cultural and charitable institutions, no part of the net income of which inures to the...

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Summary of Presidential Decree No. 507

Exemptions and Deductions for Donations to Social Welfare, Cultural and Charitable Institutions

- All gifts, bequests, donations, and/or contributions to social welfare, cultural, and charitable institutions are exempt from donor's and estate taxes. (Section 1)
- Such donations are fully deductible in computing the taxable net income of the donor. (Section 1)
- No more than 30% of the donations can be used by the recipient institution for administration purposes. (Section 1)
- The Secretary of Finance shall promulgate rules and regulations to implement this Decree, upon recommendation of the Commissioner of Internal Revenue. (Section 1)
- All inconsistent laws, decrees, orders, rules, and regulations are repealed or modified accordingly. (Section 2)
- The Decree took effect immediately upon issuance on July 16, 1974. (Section 3)