Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

Housé Bill No__ 981

Introduced by REP. AUGUSTO BOBOY SYJUCO, Ph. D.

EXPLANATORY NOTE

Education assumes a significant role in the national development. In recognition
of this fact, the present impetus of our educational development is to uplift the standards
of education and to ease the problems perennially besetting our educational institutions.

The government alone cannot assume a solitary role towards the rapid

. tealization of our national objectives. To accelerate the pace of our educational

development, the government needs the active assistance of the other sectors of the

society. Although the other sectors of society have been extending their help to our

educational institutions, this has not been fully utilized because of the limitations and
inadequate incentives available under existing laws.

Non-profit and non-stock educational institutions have the benefit of tax-
exemptions as enshrined in the 1987 Constitution. But these privileges are not sufficient
to augment the operational needs as well as the development and upgrading of school
facilities. Worsening economic conditions and the rapid strides in the development of
technology have made it difficult for non-profit and non-stock educational institutions
with their limited resources, to cope with the prevailing trend.

This bill seeks to encourage the full support of the non-government sector of our
society and to provide the much needed relief to the non-stock and the non-profit
educational institutions. Existing laws grant limited tax exemption to donations, grants,
gifts or contributions to non-stock and non-profit educational institutions. To further
solicit the active support of the non-government sector to our educational institution and
programs, this bill grants full tax exemption and tax credits to wiling benefactors. By
widening the incentives, the private sector can lend their unfailing support to our
educational institutions and programs towards the achievement of our national goal of
full development.

In consideration of the above premises, the early approval of this bill is earnestly
sought.

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AUGUSTO BOBOY SYJUCO, Ph. D.
2" District, Province of Iloilo


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:

First Regular Session

? O24
House Bill No. 981

Introduced by REP. AUGUSTO BOBOY SYJUCO, Ph. D.

AN ACT EXEMPTING FROM TAXATION ALL DONATIONS, GRANTS, OR GIFTS TO
NON-STOCK AND NON-PROFIT EDUCATIONAL INSTITUTIONS

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled: .

SECTION 1. It is the policy of the State to encourage the participation of every member
of society towards the development of our education through voluntary sharing of
resources.

SEC. 2. Notwithstanding any provision of law to the contrary, all monetary contributions
and the equivalent monetary value of properties donated, granted or bestowed to non-
stock and non-profit educational institutions are tax-exempt and deductible from the
taxable income of the donor. Provided, That such donations, grants, endowments or
contributions shall be used actually, directly and exclusively for the primary educational
purposes of the recipient; Provided further, That not more than twenty-five percent
(25%) of the donations, grants, endowments or contributions shall be used for
administrative purposes.

SEC. 3. For purposes of this Act, the equivalent monetary value of properties donated,
granted, endowed or contributed shall be the prevailing fair market value of the property
as determined by the Secretary of Finance and approved by the Bureau of Internal
Revenue

SEC. 4. All laws inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 5. This Act shall take effect upon its publication in at least two (2) national
newspapers of general circulation.

Approved.