Charitable and other contribution were Corporation or association to whom contributions or gifts may be made or paid and claimed as deduction, the amount of which is subject to limitations.
The limitation is 5% for corporations and 10% for individuals, of the taxable income derived from trade, business or profession.
Besides, the valuation of deductible contributions is the amount of property other than money shall be based on the acquisition cost of the said property.
Contribution is deductible in full of the following:
1. Donation to the Government
2. Donation to Certain Foreign Institutions or Internal Organizations
3. Donation to Accredited Nongovernment organization
The term Nongovernment organization means a nonprofit domestic corporation
a. Organization operation exclusively for scientific research, educational, character-building and youth and sports development. Health, social welfare, cultural or charitable purposes.
Under Section 30 of the National Internal Revenue Code (NIRC), the following items are not deductible:
1. Personal, living or family expenses.
2. Any amount paid out of new building or for permanent improvements, or betterment made to increase the value of any property or estate;
3. Any amount expanded in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.
References: National Internal Revenue Code, Chapter VII Allowable Deductions, Section 34 (H); RR 13-1998
The limitation is 5% for corporations and 10% for individuals, of the taxable income derived from trade, business or profession.
Besides, the valuation of deductible contributions is the amount of property other than money shall be based on the acquisition cost of the said property.
Contribution is deductible in full of the following:
1. Donation to the Government
2. Donation to Certain Foreign Institutions or Internal Organizations
3. Donation to Accredited Nongovernment organization
The term Nongovernment organization means a nonprofit domestic corporation
a. Organization operation exclusively for scientific research, educational, character-building and youth and sports development. Health, social welfare, cultural or charitable purposes.
Under Section 30 of the National Internal Revenue Code (NIRC), the following items are not deductible:
1. Personal, living or family expenses.
2. Any amount paid out of new building or for permanent improvements, or betterment made to increase the value of any property or estate;
3. Any amount expanded in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.
References: National Internal Revenue Code, Chapter VII Allowable Deductions, Section 34 (H); RR 13-1998
