Dear PAO,

Our family is an advocate of culture and literacy. For as long as I can remember, we have always been active in donating to different charities and foundations. Recently, we have been contemplating giving a donation to the National Library of the Philippines. I was just wondering if our donation will be subject to the regular taxes of the government?

Clara

Dear Clara,

No less than the 1987 Constitution declares that the State shall give priority to education, science and technology, arts, culture, and sports to nurture the spirit of patriotism and nationalism, advance social progress, and support the full development and freedom of every individual. In line with these objectives, Republic Act (RA) 11961, otherwise known as the National Cultural Heritage Act, was created.

The Implementing Rules and Regulations (IRR) of RA 11961 defines the National Library of the Philippines as a cultural agency. Rule III, Section 8.29 thereof states:

“29. ‘Cultural agencies’ shall refer to the following national government agencies: the NCCA; National Museum of the Philippines (NMP); National Library of the Philippines (NLP); National Historical Commission of the Philippines (NHCP); National Archives of the Philippines (NAP); Cultural Center of the Philippines (CCP) and Komisyon Sa Wikang Filipino (KWF);”

Other than giving concrete and clear definitions of the nuances surrounding our cultural heritage and cultural preservation as a strategy to maintain Filipino identity, Rule XVII, Section 81.3 of the same IRR provides guidelines in donations made to the Commission for Culture and the Arts (NCAA) and other cultural agencies. Particularly:

“Section 81. Tax Exemption on Donations. – All donations in any form to the Commission and its affiliated cultural agencies shall be exempt from the donor’s tax and the same shall be considered as allowable deduction from the gross income in the computation of the income tax of the donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as amended, subject to the issuance of the appropriate rules and guidelines thereon by the Commission and Bureau of Internal Revenue (BIR), which shall be made part of these Rules as Annex 46. x x x

“Section 81.3. Donations to the NMP, NLP, and NHCP. – Pursuant to P.D. No 373, s. 1974, all monetary contributions and the equivalent monetary value of works of art, manuscript, books or other articles of cultural, historical or scientific significance, donated to the NMP, NLP, and NHCP, are tax exempt and deductible from the taxable income of the donor.”

To answer your question, any donation given to the National Library of the Philippines, whether monetary or otherwise, shall be tax-exempt and deductible from taxable income. This includes all financial donations, as well as the equivalent monetary value of artworks, manuscripts, books, or other items of cultural, historical, or scientific importance, donated to the National Museum of the Philippines (NMP), the National Library of the Philippines (NLP), and the National Historical Commission of the Philippines (NHCP).

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

We appreciate your trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]