EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S. B. No. 2046
Introduced by Senator SONNY ANGARA
Februarv
.sVviiNi>€X
AN ACT
EXEMPTING THE DONATION OF VACCINES, CRITICAL PRODUCTS, 
ESSENTIAL GOODS, EQUIPMENT OR SUPPLIES NEEDED TO CONTAIN AND 
MITIGATE COVID-19 FROM DONOR'S TAX AND FOR OTHER PURPOSES
EXPLANATORY NOTE
With the advent of the COVID-19 pandemic, the country was forced to close 
its borders resulting in the restriction of trade and access to goods including medicines 
and supplies for the mitigation and containment of the coronavirus disease. To 
address this, emergency measures were enacted such as the Bayanihan to Heal As 
One Act (RA 11469) and Bayanihan to Recover As One Act (RA 11494), which 
authorized and empowered the President, among others, to liberalize the grant of 
incentives for the manufacture of critical equipment and supplies.
As the government gears towards rolling-out its immunization program against 
COVID-19, the effective and efficient delivery of public goods and services—in this 
instance, vaccines, needles, storage equipment, and other critical products—becomes 
all the more critical.
In order to bolster the supply of vaccines, this bill makes it easier to accept 
donations of critical products, essential goods, equipment or supplies needed to 
contain and mitigate COVID-19, including the vaccines, by exempting these from 
donor's tax for a definite period, subject to certain conditionalities.
In view of the foregoing, the immediate passage of this biil is earnestly sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE
S. B. No. 2046
n A TPT ,February
T>ME
NDEX
BR-LS
Introduced by Senator SONNY ANGARA
AN ACT
EXEMPTING THE DONATION OF VACCINES, CRITICAL PRODUCTS, 
ESSENTIAL GOODS, EQUIPMENT OR SUPPLIES NEEDED TO CONTAIN AND 
MITIGATE COVID-19 FROM DONOR'S TAX AND FOR OTHER PURPOSES
Be It enacted by the Senate and House of Representatives of the Philippines In 
Congress assembled:
1 
SEC. 1. Exemption from Donor's Tax. - Beginning January 1, 2021 to
2 
December 31,2023, donations to or for the use of the government or any of its political
3 
subdivisions and private entities of the following articles pertaining to the containment
4 
or mitigation of COVID-19 shall be exempt from donor's tax:
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I. Capital equipment, its spare parts and raw materials necessary for the
6 
production of personal protective equipment (PPE) components such as
7 
coveralls, gown, surgical cap, surgical masks, N-95 mask, scrub suits,
8 
goggles and face shield, double or surgical gloves, dedicated shoes, and
9 
shoe covers, for COVID-19 prevention;
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II. All drugs, vaccines and medical devices specifically prescribed and directly
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used for the treatment of COVID-19: Provided, that within sixty (60) days
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from the effectivity of this Act, and every three (3) months thereafter, the
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Department of Health (DOH) shall issue a list of prescription drugs and
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medical devices covered by this provision;
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III. Drugs for the treatment of COVID-19 approved by the FDA for use in
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clinical trials. Including raw materials directly necessary for the production
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of such drugs: Provided, that the Department of Trade and Industry (DTI)
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shall certify that such equipment, spare parts or raw materials being


1 
donated are not locally available or insufficient in quantity, or not in
2 
accordance with the quality or specification required;
3 
IV. Equipment for waste management, inciuding, but not limited to, waste
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segregation, storage, collection, sorting, treatment and disposal services
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as approved by the Department of Environment and Natural Resources
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(DENR), DON or other concerned regulatory agencies; and
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V. Such other supplies or equipment as determined by the DOH and the DTI.
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Provided, that for purposes of the exemption, the donated articies shali not be
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intended for commercial use and shall be for free distribution to or use for the
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containment or mitigation of COVID-19. Any resale of the donated articles shall be
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prohibited: Provided, further, that the Department of Rnance (DOF) and the Bureau
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of Internal Revenue (BIR) shall Issue the necessary guidelines governing donations to
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private entities: Provided, furthermore, that the exemption claimed under this section
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shall be subject to post audit by the BIR or the Bureau of Customs (BOC), as may
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be applicable: Provided, finaiiy, that the donations shall be subject to the rules of
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deductibility pursuant to the provisions of the National Internal Revenue Code, as
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amended and applicable rules and Issuances of the BIR.
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SEC. 2. Implementing Rules and Regulations (IRR). - The DOF and
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DOH, in coordination with the DTI, BIR, BOC and other relevant agencies shall
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promulgate the pertinent implementing rules and regulations within 30 days from
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effectivity of this Act.
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SEC. 3. Repealing Clause. - Ali laws. Issuances, orders, rules and
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regulations, or parts thereof, which are contrary or inconsistent with this Act are
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hereby repealed, amended or modified accordingly.
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SEC. 4. Separability Clause. -If any provision of this Act is declared invalid
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or unconstitutional, the other provisions not affected thereby shall remain valid and
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subsisting.
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SEC. 5. Effectivity Clause. -This Act take shall effect fifteen (15) days after
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publication in a newspaper of generai circuiation or in the Official Gazette.
Approved,