EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regnlnr Session 
)
SENATE 
Senate Bill No. ^509
r RECEIVED 7^
E-FILED
March 7, 2022 m
oo
UT OATC;
iT-
T !>,if:.01:17 Pm
( NObX
6ILLC.
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
PROVIDING ADDITIONAL TAX INCENTIVES ON GIFTS AND DONATIONS TO 
ACCREDITED FARMERS AND FISHERFOLK ENTERPRISES UNDER THE 
FARMERS AND FISHERFOLK ENTERPRISE DEVELOPMENT PROGRAM, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 11321, OTHERWISE 
KNOWN AS THE "SAGIP SAKA ACT"
EXPLAN ATORY NOTE
Republic Act No. 11321, otherwise known as the "Sagip Saka Act," was enacted with 
the purpose of improving the productivity and increasing the incomes of farmers and 
fisherfolk so that they will eventually attain a better quality of life.
To achieve this, the Act created the Farmers and Fisherfolk Enterprise Development 
Program that will integrate the different programs of the Department of Agriculture to 
support farmers and fisherfolk enterprises, enhance their business management, and 
provide then an expanded access to markets and product development. Government 
support comes in the form of agricultural and fishery inputs, grant of equipment and 
machineries, provision of production/ processing/storage facilities, technical assistance 
including training for productivity and business management, the direct purchase of 
cigricultural and fishery products without need of public bidding, as well as partnership 
with the private sector and direct access to markets.
In the case of partnership with the private sector, this can be done thru marketing 
contracts, technology transfer, financial and organizational capability enhancement, as 
well as the donation of equipment, machineries, and other real or personal properties to 
the accredited farmers and fisherfolk enterprises.
This Bill seeks to further encourage the private sector to donate to accredited 
farmers and fisherfolk enterprises under the Farmers and Fisherfolk Enterprise Program 
by declaring that donors of real and personal properties to these enterprises, in addition 
to being exempted from the payment of donor's tax, shall be permitted to claim those 
donations as allowable deductions from the gross income. To further encourage them to 
donate, the allowable deductions on the gross income shall be made equivalent to one 
hundred fifty percent (150%) of the value of the donation.
Such additional incentives to the private sector to donate deserve merit and 
approval as these will be given to deserving accredited farmers and fisherfolk enterprises


that have undergone strict selection criteria under the Farmers and Fisherfolk Enterprise 
Development Program. Private sector participation shall not only help increase the 
productivity and incomes of farmers and fisherfolk, but will also benefit the entire 
country through improved and sufficient food production and lower food prices.
The immediate approval of this Bill is therefore earnestly sought.
GILINAN
FRANCIS In.


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regidar Session 
)
SENATE
Senate Bill No.
■&>0'RFrf;ivFiu^’
;Not
5ILUC
Introduced by Senator FRANCIS N. PANGILINAN
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 the House of Representatives of the Philippines in Congress 
assembled:
1 
SECTION. 1. Section 12 of Republic Act (R. A.) No. 11321, otherwise known as the
2 
"Sagip Saka Act" is hereby amended to read as follows:
3 
"Section 12. Tax Incentives and Exemptions. — The provisions of any
4 
general or special law to the contrary notwithstanding:
5 
(a) Gifts and donations of real and personal properties shall be exempt
6 
from donor's tax AND THE SAME SHALL BE CONSIDERED AS
7 
ALLOWABLE DEDUCTIONS FROM THE GROSS INCOME OF THE
8 
DONOR, IN ACCORDANCE WITH THE PROVISIONS OF THE
9 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED:
10 
PROVIDED, THAT THE ALLOWABLE DEDUCTIONS SHALL BE
11 
EQUIVALENT TO ONE HUNDRED FIFTY PERCENT (150%) OF THE
12 
VALUE OF SUCH DONATION. THE VALUATION OF THE
13 
DONATION OTHER THAN MONEY SHALL BE BASED ON THE
14 
ACQUISITION COST OF THE PROPERTY. SUCH VALUATION


SHALL TAKE INTO CONSIDERATION THE DEPRECIATED VALUE 
OF PROPERTY IN CASE SAID PROPERTY HAS BEEN USED;"
X X X
SEC. 2. Repealing Clause. - All laws, decrees, executive issuances, and rules and
5 
regulations, inconsistent with the provisions of this Act are hereby repealed or modified
6 
accordingly.
7 
SEC. 3. Separability Clause. - If any provision or part of this Act is held invalid or
8 
unconstitutional, the other provisions hereof which are not affected shall continue to be
9 
in full force and effect.
10 
SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
11 
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,