RR 15-2023

RR No. 15-2023 (issued December 13, 2023) implements the Donor's Tax exemption for donations by Registered Business Enterprises (RBEs) of Investment Promotion Agencies (IPAs) of imported capital equipment, raw materials, spare parts, or accessories directly and exclusively used in the registered project or activity, when donated to TESDA, State Universities and Colleges (SUCs), or DepEd and CHED-accredited schools. The exemption requires a Certificate of Approval from the concerned IPA if donated within five years from importation, or prior notice to the IPA if donated after five years, and a deed of donation detailing the items, quantity, and value for BIR post-audit/verification. The donation's value is deductible from the donor's gross income under Section 34(H) rules in the year of donation, substantiated by documents such as sales invoices, deed of donation, delivery receipts, and proof of receipt by the donee. The donation is not treated as a deemed sale subject to VAT, and its amount is based on net book value.