BIR issues tax incentive guidelines for donors of devices
THE Bureau of Internal Revenue (BIR) said it issued the guidelines for donors of devices for use in remote learning in public schools to avail of tax incentives.
BIR Commissioner Caesar R. Dulay issued Revenue Regulations (RR) No. 26-2020 dated Oct. 6 to implement the tax-incentive provisions of Republic Act 11494 or the “Bayanihan to Recover as one Act,” which rewards tax privileges to donors of computers, tablets, mobile phones and other equipment intended for use in public schools to facilitate remote learning.
It said the value of the donations are deductible from gross income. The value of new items will be based on acquisition cost, while those of used items will be assessed to account for depreciation.
Public-school device gifts are exempt from donor’s tax. A Value-Added Tax (VAT) exemption also applies to imports by the Department of Education, Commission on Higher Education or Technical Education and Skill Development Authority. — Beatrice M. Laforga