By: Hergie Ann De Guzman, CPA

The COVID-19 Pandemic undoubtedly affects every aspect of our daily lives – family, work, and especially the students’ means of learning. With the school opening suspended last June, there has been a significant delay in their studies. Finally, this October, classes reopened but in a different setting and mode – the classes went virtual or online. The online classes, I might say, is not for everyone especially to those who cannot afford to purchase the necessary gadgets for this platform. Another thing is not every school is fully equipped with the proper learning materials and technology. Good thing that there are kindhearted individuals and institutions who are donating for the schools. But how can the government repay for this generosity?


BIR issued Revenue Regulations (RR) No. 26-2020 to implement Section 4 (zzz) of Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act. Under the RR,  all donations of learning and teaching equipment in public schools during the effectivity of the RA (September 15,2020 to December 19, 2020), shall be exempted from donor’s taxes and duties and taxes, if imported.



All donations made to public schools, State Universities and Colleges (SUCs), vocational institutions under TESDA, such as personal computers, laptops, tablets, mobile phone, printer for use in teaching and learning in public schools.


Tax Incentives

A. Deduction from Gross Income

The amount of donation could be claimed as deduction from gross income subject to limit as prescribed in the Tax Code, as amended. Provided further that the following conditions are met:

  • The Deed of Donation indicates the full details of the donated equipment such as quantity and value.
  • The deduction is availed of within the year.
  • There is proper documentation or proof of donation such as acknowledgment of receipt of the donated equipment from the donee.

B. Exemption from Donor’s Tax

C. For foreign donation, exemption from input VAT and issuance of Authority to Release Imported Goods (ATRIG) under Revenue Memorandum Order (RMO) No. 35-2002.

D. For local donation of equipment originally intended for sale or for use in the course of business by the donor, the same shall not be treated as a transaction deemed sale subject to VAT. Any input tax VAT not previously claimed as input tax shall be creditable against any output tax