Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

House BillNo. = Gi 32

4TH DISTRICT, BULACAN

EXPLANATORY NOTE

‘The standard of education must be consistently upgraded to conform with national development
goals. This should be the guidepost in the implementation of the State policy of delivery of quality
education at the grassroots,

Presently, however, as the State routinely performs its task of complying with the constitutional
requirement of bringing quality education to our students, this can be amply augmented by involving
the private sector in this endeavor While non-stock, non-profit educational institutions are already
enjoying tax exemptions, the present incentives are deemed insufficient to address operational
requirements, This is also aggravated by the deteriorating economic conditions as well as the rapid
leaps of technological developments,

This proposed bill seeks to encourage full support of non-stock, non-profit educational
institutions by granting them full tex exemptions and deductions from the taxable income for
donations, grants, endowments or contributions used actually, directly and cxclusively for the primary
educational purposes of the recipient.

Support for the enactment of this measure is earnestly requested.

REP. LINABELLE RUTH R. VILLARICA,


Republic of the Philippines
HOUSL OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTFENTH CONGRESS
Second Regular Session

House BillNo.  Uid

Introduced by HON. LINABELLE RUTH R. VILI.ARICA
4TH DISTRICT, BULACAN

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

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

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

SEC. 2. Tax Exemption. - Notwithstanding any provision of law to the contrary, all monetary
contributions and equivalent monetary value of propertics donated, granted ot bestowed to non-stock
and non-profit 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
thimy per cent (30%) of the donations, grants, endowments or contributions shall be used for
administrative purposes.

SEC. 3. Valuation. - 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. Repealing Clause, - All laws, decrees, orders, rules and regulations or parts thereof,
inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 5. Separability Clause. - If, for any reason, any provision of this Act is declared to be
unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall
continue to be in full force and effect

SEC. 6. Effectivity Clause. - This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or in two (2) newspapers of general circulation

Approved,