House bill exempting foreign donations from customs duties, taxes approved

The House Committee on Ways and Means has unanimously approved a bill seeking to create a registration, licensing and accreditation system for social welfare and development agencies (SWDAs).

The House panel chaired by Albay Rep. Joey Salceda specifically approved the “tax exemption” provision of House Bill No. 4796 (The proposed Social Welfare and Development Agencies Act) principally authored by La Union Rep. Sandra Eriguel.

Eriguel, chairman of the House Committee on Social Services, said her bill grants benefits and privileges to registered SWDAs and to licensed and accredited Social Welfare Agencies (SWAs).

Section 20 of the bill grants exemption from the payment of customs duties, and taxes of any foreign donation made to the registered, licensed and accredited SWDAs, she said.

It also grants “exemption from donor’s tax of all grants, bequest, endowments, donations and contributions that were granted to registered, licensed and accredited SWDAs, if these are actually, directly and exclusively used by the said SWDAs in their operations and for their social welfare programs and services,” she added.

The bill defines SWDA as “a nonstock, nonprofit corporation, organization, association, or cooperative engaged in providing, directly or indirectly, social welfare and development programs and services.”

Eriguel noted that the bill has been a “priority legislative proposal” of the Department of Social Welfare and Development (DSWD) for the last three Congresses, including the 18th Congress.

“This bill is an anti-corruption measure and strategy as it is intended to promote transparency and accountability among social welfare and development agencies. This is envisioned to protect the program beneficiaries from abuse and exploitation,” she said in her sponsorship speech.

The House leader said once enacted into law, the measure will strengthen the regulatory functions of the Standards Bureau of the DSWD.

“It will give the Department the mandate to register and license SWDAs and to accredit social welfare and development programs and services. Hence, the operations and management of the SWDAs in both public and private sectors will be closely monitored and evaluated by the Department,” Eriguel said.

The Salceda panel approved the tax provision of the bill after COOP-NATCCO partylist Rep. Sabiniano Canama, one of the principal authors, moved for its approval.

Salceda said the bill’s approval was “in cognizance” that the measure was approved on third and final reading during the previous 17th Congress, even as he cited the “proliferation” of SWDAs and SWAs in the country.

Eriguel thanked the Salceda panel for approving HB 4796, particularly its provisions granting exemption to SWDAs from tax and customs duties.

HB 4796 aims to ensure effectiveness, efficiency and accountability in the delivery of quality social welfare and development programs and services.

It grants DSWD regulatory powers and functions over agencies and organizations engaged in social welfare and development activities.

The bill tasks the DSWD to collect the application fees for registration, licensing and accreditation as well as monitor the SWDAs and their dissolution.

Under the bill, the SWDAs that operate without registration or license shall be slapped with a fine of R100,000 to R500,000, or imprisonment ranging from one to three years.