Title II — TAX ON INCOME
nonresident alien individual engaged in trade or business in the
Philippines or a resident foreign corporation, allowance for depletion
of oil and gas wells or mines under paragraph (1) of this Subsection
shall be authorized only in respect to oil and gas wells or mines
located within the Philippines.
(H)
Charitable and Other Contributions. —
(1) In General. — 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, or to accredited domestic corporations or
associations organized and operated exclusively for religious,
charitable, scientific, youth and sports development, cultural or
educational purposes or for the rehabilitation of veterans, or to
social welfare institutions, or to nongovernment organizations, in
accordance with rules and regulations promulgated by the Secretary
of Finance, upon recommendation of the Commissioner, no part
of the net income of which inures to the benefit of any private
stockholder or individual in an amount not in excess of ten percent
(10%) in the case of an individual, and five percent (5%) in the
case of a corporation, of the taxpayer’s taxable income derived from
trade, business or profession as computed without the benefit of this
and the following subparagraphs.
(2) Contributions Deductible in Full. — Notwithstanding the provisions of
the preceding subparagraph, donations to the following institutions
or entities shall be deductible in full:
(a) Donations to the Government. — Donations to the Government
of the Philippines or to any of its agencies or political
subdivisions, including fully-owned government corporations,
exclusively to finance, to provide for, or to be used in
undertaking priority activities in education, health, youth and
sports development, human settlements, science and culture,
and in economic development according to a National Priority
Plan determined by the National Economic and Development
Authority (NEDA), in consultation with appropriate government
agencies, including its regional development councils and
private philanthropic persons and institutions: Provided, That
any donation which is made to the Government or to any of
its agencies or political subdivisions not in accordance with
the said annual priority plan shall be subject to the limitations
prescribed in paragraph (1) of this Subsection;
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Isla Lipana & Co., the Philippine member firm of the PwC network
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