Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING ADDITIONAL TAX INCENTIVES ON GIFTS AND DONATIONS 
TO ACCREDITED FARMERS AND FISHERFOLK ENTERPRISES UNDER 
THE 
FARMERS 
AND 
FISHERFOLK 
ENTERPRISE 
DEVELOPMENT 
PROGRAM OF THE DEPARTMENT OF AGRICULTURE, AMENDING FOR 
THE PURPOSE REPUBLIC ACT. NO. 11321, OTHERWISE KNOWN AS THE 
“SAGIP SAKA ACT” 
EXPLANATORY NOTE 
The Republic Act 1321, or the “Sagip Saka Act of 2018”, established the 
Farmers and Fisherfolk Enterprise Development Program with the goal of 
achieving sustainable agriculture and food security by assisting farmers and 
fisherfolk in raising their output and income. 
The private sector's involvement, which can take the form of marketing 
agreements, technology transfers, the improvement of organizational and 
financial capabilities, and donations of equipment, machinery, and other real 
or personal property to accredited farmer and fisherfolk enterprises, is 
essential to the program's success. 
This measure hopes to further encourage the private sector to support 
accredited farmers and fisherfolk enterprises under the Farmers and 
Fisherfolk Enterprise Program by allowing donors of real and personal 
property to these enterprises to deduct their donations as allowable 
deductions equal to one hundred fifty percent (150%) of the value of the 
donation from their gross income. 
1:08 pm
August 17, 2023
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By providing mechanisms to improve the participation of the private 
sector in the nation’s agricultural productivity, the country’s growing 
population can rely on more food-secure and resilient agriculture.  
 
 
In view of the foregoing, approval of this bill is earnestly sought.  
 
 
REP. PM VARGAS 
Fifth District, Quezon City 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING ADDITIONAL TAX INCENTIVES ON GIFTS AND DONATIONS 
TO ACCREDITED FARMERS AND FISHERFOLK ENTERPRISES UNDER 
THE 
FARMERS 
AND 
FISHERFOLK 
ENTERPRISE 
DEVELOPMENT 
PROGRAM OF THE DEPARTMENT OF AGRICULTURE, AMENDING FOR 
THE PURPOSE REPUBLIC ACT. NO. 11321, OTHERWISE KNOWN AS THE 
“SAGIP SAKA ACT” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 12 of Republic Act 11321, otherwise known as the “Sagip 
Saka Act”, is hereby amended to read as follows: 
“Section 12. Tax Incentives and Exemptions. – The provisions of any 
general or special law to the contrary notwithstanding: 
(a) Gifts and donations of real and personal properties shall be
exempt from donor’s tax AND THE SAME SHALL BE
CONSIDERED AS ALLOWABLE DEDUCTIONS FROM THE
GROSS INCOME OF THE DONOR, IN ACCORDANCE WITH
THE PROVISIONS OF THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED: PROVIDED, THAT THE
ALLOWABLE DEDUCTIONS SHALL BE EQUIVALENT TO ONE
HUNDRED FIFTY PERCENT (150%) OF THE VALUE OF SUCH
DONATION. THE VALUATION OF THE DONATION OTHER
THAN MONEY SHALL BE BASED ON THE ACQUISITION COST
OF THE PROPERTY. SUCH VALUATION SHALL TAKE INTO
CONSIDERATION THE DEPRECIATED VALUE OF PROPERTY
IN CASE SAID PROPERTY HAS BEEN USED;”
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SECTION 2. Separability Clause. -  If any provision of this Act is declared 
invalid unconstitutional, other provisions hereof which are not affected 
thereby shall remain in full force and effect. 
 
SECTION 3. Repealing Clause. – All laws, orders, decrees, rules and 
regulations, and other parts thereof inconsistent with the provisions of this 
Act are hereby repealed, amended, or modified accordingly. 
 
SECTION 4. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in two (2) newspapers of general 
circulation in the Philippines. 
 
Approved,