BIR released an order exempting donated gadgets for public schools from VAT, donor’s tax, and ATRIG.
The Bureau of Internal Revenue (BIR) released an order exempting donated laptops, personal computers, tablets, or similar equipment used in learning and teaching to public schools from value-added tax (VAT), donor’s tax, and Authority to Release Imported Goods (ATRIG).
This, as the Bureau of Internal Revenue had recently released an order that entitled donated gadgets for public schools to tax incentives.
The said order was compliant with Section 4 of Republic Act No. 11494 — also known as “Bayanihan to Recover as One Act” — that covered all donations of identified equipment for use in public schools.
As stated in Revenue Regulations Circular No. 26-2020, donors of laptops, personal computers, tablets, or similar equipment used in learning and teaching to public schools should be entitled to tax incentives.
This may include deduction from the gross income of the amount of donation or contribution provided that the Deed of Donation indicated the detail of the items donated including its number or quantity and also the value or amount of the donation as well.
The deduction shall be availed in the same taxable year, which the expenses had been incurred or paid.
READ ALSO: Content Creators, Filmmakers, Bloggers Earning From Digital Ads Required To Register — BIR
Also, foreign donations were exempted from Authority to Release Imported Goods (ATRIG) under BIR’s Revenue Memorandum Order (RMO) No. 35-2002, as amended.
However, the Bureau of Internal Revenue may conduct a post-investigation audit on the importations released by the Bureau of Customs without Authority to Release Imported Goods (ATRIG) pursuant to the said regulation.
You can read the full text below:
Previously, BIR Deputy Commissioner for Operations Arnel Guballa said that content creators, filmmakers, bloggers, and other independent creative professionals who earned from digital ads were required to register to BIR.
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