BIR is­sues tax in­cen­tive guide­lines for donors of de­vices

Business World - - The Economy -

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

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