The Bureau of Internal Revenue (BIR) has announced that income tax deduction privileges will be granted to businesses and individuals who donate computers to public schools for teaching and learning.
The BIR issued Revenue Regulations 26-2020 to help remedy the acute shortage of these electronic devices even as classes resumed last Monday.
The gadgets accepted for donation are personal computers, laptops, tablets, mobile phones and printers.
The recipients shall include all public schools regardless of levels, including state universities and colleges as well as the Technical Education and Skill Development Authority.
The regulations was signed by Finance Secretary Carlos Dominguez III on the recommendation of BIR Commissioner Caesar Dulay as part of the government’s program implementing the Bayanihan to Recover as One Act.
Foreign companies are welcome to join the project exempting their donation from value-added tax and securing Authority to Release Imported Goods (ATRIG) clearance to move the gifts out of the customs zones.
To claim for tax deduction, donors are required to submit sales invoices and the Deed of Donation indicating the number and value of the items.
If the gadgets had already been used the depreciated value shall be considered.
The guideline stated that the computation of the tax deduction shall be based on the rules set forth under Section 34 (H) of the Tax Code.