Donations for 'Yolanda' are tax-free - BIR

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday said that donations for the victims of super typhoon Yolanda (Haiyan) will not be taxed if coordinated with government agencies.

BIR Commissioner Kim Henares made the clarification as foreign and local donations continued to pour in six days after the powerful typhoon ravaged a large part of Eastern Visayas.

Under the National Internal Revenue Code (NIRC) of 1997, duties or taxes shall not be imposed on donations coming from other countries if the same will be coordinated with the Department of Social Welfare and Development, the National Disaster Risk Reduction and Management Council, foundations or non-governmental organizations (NGOs) accredited by the government.

Henares, meanwhile, said that the donations should be properly documented.

She said donations are also exempted from the Value Added Tax (VAT) because the taxes for these will be shouldered by the national government through the tax expenditure fund.