BIR, PCUP ink accord to tax exempt donations for urban poor programs

The Bureau of Internal Revenue (BIR) has signed an agreement with the Presidential Commission for the Urban Poor (PCUP) to exempt from taxes donations made by the private sector to the body.

In a statement on Wednesday, the BIR said Commissioner Romeo Lumagui Jr. and PCUP chairperson Maynardo Sabili entered into a memorandum of agreement (MOA) on September 10, 2024.

The BIR said the accord provided “several provisions that redounds to the benefit of PCUP.”

In particular, the tax collection agency will be exempting from taxes the donations made by private companies to PCUP.

The Tax Reform for Acceleration and Inclusion (TRAIN) law puts a flat donor’s tax rate of 6% of the total value of donation, which exceeds P250,000 in a calendar year. Meanwhile, the first P250,000 worth of donations is exempted from tax.

Moreover, the MOA also provides orientations to the presidential body’s persons of the policies and guidelines for the exemption granted to donors, as well as the designation of a focal person from the taxman that will coordinate with the PCUP for the implementation and monitoring of the accord.

"The BIR will exert all efforts in assisting the noble mission of the PCUP to implement programs for the urban poor,” said Lumagui.

"The BIR is your partner in helping the urban poor. Excellent taxpayer service means the granting of tax exemptions, as long as there is legal and factual basis for the exemption. We are at your service," he added.

The PCUP, created under Executive Order No. 82 dated December 8, 1986, serves as a direct link of the urban poor sector to the government in policy formulation and program implementation addressing the sector’s needs. —KBK, GMA Integrated News