RR 12-2022

RR No. 12-2022 (issued September 13, 2022) sets the policies and guidelines for lawyers and professional partnerships to avail of the incentive under Republic Act No. 9999 (Free Legal Assistance Act of 2010): an allowable deduction from gross income equal to the lower of (a) the amount that could have been collected for the actual free legal services rendered or (b) ten percent (10%) of the gross income derived from the actual performance of the legal profession. The free legal services claimed must be exclusive of the minimum sixty (60)-hour mandatory legal aid services to indigent litigants under Bar Matter No. 2012. To claim the deduction, the lawyer or professional partnership must attach to the Income Tax Return: (a) a certification from the Public Attorney's Office, the Department of Justice, or a Supreme Court-accredited association (which must state the hours actually provided); (b) BIR Form No. 1701 (individual lawyers) or BIR Form No. 1702-EX (general professional partnership), Schedules 5 and 2 respectively, on Special Allowable Itemized Deductions; and (c) a sworn statement as to the amount that could have been collected.