Digested - BIR RR 26-2020
Implementing Section 4 of Republic Act (RA) No. 11494 Otherwise Known as "Bayanihan to Recover as One Act" Relative to Donations of Identified Equipment for Use in Public Schools
As to coverage
- All donations of personal computers, laptops, tablets or similar equipment such as mobile phone, printer
- Use in teaching and learning
- To public schools (government school, including State Universities and Colleges and vocational institutions under TESDA regardless of school levels)
- Donations from September 15, 2020 to December 19, 2020
As to valuation of donation
- Shall base on the actual acquisition cost of personal computers, laptops, tablets, or similar equipment donated.
- If already been used, the depreciated value shall be taken into consideration
As to Tax Incentives
Deduction from gross income
- Complete details of items donated such as quantity, number and the amount or value of donation shall be indicated in the deed of donation
- Deduction shall be availed of in the taxable year which the expenses have been paid or incurred
- Substantiate the deduction with sufficient evidence such as sales invoices, delivery receipt and other adequate records the amount of expenses being claimed as deduction and proof or acknowledgement of receipt of the contributed or donated property by the recipient public school.
- Exemption from the payment of donor’s tax
- Exemption from Value added tax (VAT)
- Importation of the personal computers, laptops, tablets or similar equipment such as mobile phone, printer
- Exclusively imported by DEPED, CHED, or TESDA
- The importer or the consignee must not include DEPED, CHED, or TESDA
- Deed of donation accepted by DEPED, CHED, or TESDA
The importation shall not be subject to the issuance of Authority to Release Imported Goods (ATRIG) and the said goods may be released by the Bureau of Customs without the need of ATRIG.
- Shall not be treated as transaction deemed sale if originally intended for sale or for use in the course of business by the donor
- Shall be creditable against any output tax the input tax attributed to the purchase of donated personal computers, laptops, tablets or similar equipment such as mobile phone, printer
- The same rule shall apply for donations made by ecozone locators to DEPED, CHED, or TESDA.