Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
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 
COVID-19 vaccination is considered the best chance we have to transition out of the 
pandemic. It is widely believed by our scientist that natural herd immunity would not 
have been sufficient to return to normal. This is echoed by the World Health 
Organization. 
However, the Philippines is still barely rolling out its immunization program against 
COVID-19. There remains a need for an effective delivery of vaccines including 
needles, storage equipment and other instruments.  
This proposed measure ensures an easier acceptance of vaccines, including equally 
essential equipment, supplies and other goods necessary for its administration. The 
bill seeks to exempt these donations from donor's tax for a definite period, subject to 
certain conditions. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
July 26, 2021
5:59 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
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: 
SEC. 1. Exemption from Donor's Tax. – Beginning January 1, 2021 to 
December 31, 2023, donations to or for the use of the government or any of its 
political subdivisions and private entities of the following articles pertaining to the 
containment or mitigation of COVID-19 shall be exempt from donor's tax: 
I. Capital equipment, its spare parts and raw materials necessary for the 
production of personal protective equipment (PPE) components such as 
coveralls, gown, surgical cap, surgical masks, N-95 mask, scrub suits, goggles 
and face shield, double or surgical gloves, dedicated shoes, and shoe covers, 
for COVID-19 prevention;
II. All drugs, vaccines and medical devices specifically prescribed and directly 
used for the treatment of COVID-19: Provided, that within sixty (60) days from 
the effectivity of this Act, and every three (3) months thereafter, the Department 
of Health (DOH) shall issue a list of prescription drugs and medical devices 
covered by this provision;
III. Drugs for the treatment of COVID-19 approved by the FDA for use in clinical 
trials. Including raw materials directly necessary for the production of such drugs: 
Provided, that the Department of Trade and Industry (DTI) 18 shall certify that 
such equipment, spare parts or raw materials being donated are not locally 
available or insufficient in quantity, or not in accordance with the quality or 
specification required;
IV.  Equipment  for  waste  management,  including,  but  not  limited  to,  waste 
segregation, storage, collection, sorting, treatment and disposal services as 
approved by the Department of Environment and Natural Resources (DENR), 
DOH or other concerned regulatory agencies; and
V. Such other supplies or equipment as determined by the DOH and the DTI.
Provided, that for purposes of the exemption, the donated articles shall not be 
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intended for commercial use and shall be for free distribution to or use for the 
containment or mitigation of COVID-19. Any resale of the donated articles shall be 
prohibited: Provided, further, that the Department of Finance (DOF) and the Bureau of 
Internal Revenue (BIR) shall Issue the necessary guidelines governing donations to 
private entities: Provided, furthermore, that the exemption claimed under this section 
shall be subject to post audit by the BIR or the Bureau of Customs (BOC), as may be 
applicable: Provided, finally, that the donations shall be subject to the rules of 
deductibility pursuant to the provisions of the National Internal Revenue Code, as 
amended and applicable rules and Issuances of the BIR. 
SEC. 2. Implementing Rules and Regulations (IRR). – The DOF and DOH, in 
coordination with the DTI, BIR, BOC and other relevant agencies shall promulgate the 
pertinent implementing rules and regulations within 30 days from effectivity of this Act. 
SEC. 3. Repealing Clause. – All laws, issuances, orders, rules and regulations, 
or parts thereof, which are contrary or inconsistent with this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 4. Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall remain valid and 
subsisting. 
SEC. 5. Effectivity Clause. – This Act shall take effect fifteen (15) days after 
publication in a newspaper of general circulation or in the Official Gazette. 
Approved,