Photo courtesy of BIR.
QUEZON CITY (PIA) — The Bureau of Internal Revenue (BIR) has signed a memorandum of agreement (MOA) with the Presidential Commission for the Urban Poor (PCUP) to exempt from taxes private-sector donations to the government’s urban poor programs.
BIR Commissioner Romeo Lumagui Jr. and PCUP Chairperson Maynardo Sabili both signed the MOA on September 10, 2024.
In a statement on Wednesday, Oct. 16, Lumagui was quoted as saying, “The BIR will exert all efforts in assisting the noble mission of the PCUP to implement programs for the urban poor.”
He said that the tax agency is PCUP’s partner in helping the urban poor, adding that “excellent taxpayer service means the granting of tax exemptions, so long as there is a legal and factual basis for the exemption; we are at your service.”
Under the MOA, the tax collection agency will be exempting from taxes the donations made by private companies to PCUP.
Under the MOA, the BIR will provide orientations to PCUP’s focal persons on the policies and guidelines for the exemption granted to donors.
Moreover, the taxman will designate a focal person that will coordinate with the PCUP for the implementation and monitoring of the agreement.
Created under Executive Order No. 82 dated December 8, 1986, the PCUP serves as a direct link of the urban poor sector to the government in policy formulation and program implementation addressing the urban poor sector’s needs.
Meanwhile, the Tax Reform for Acceleration and Inclusion (TRAIN) Law provides for a flat donor’s tax rate of 6% of the total value of the donation, which exceeds P250,000 in a calendar year. But the first P250,000 worth of donations is exempt from tax. (PIA DMD)
