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Understanding Donors Tax in the Philippines

Donors taxes in the Philippines

Doing good is rewarding. But did you know that it can also help lower your taxes? Maximize your contributions and learn more about Donors tax in the Philippines.

Charitable contributions don’t just make a significant impact on the lives of those in need; they can also offer financial benefits to donors. Thanks to the Philippine tax code, individuals and corporations can enjoy tax incentives for their acts of generosity through a system designed to encourage more charitable giving. Here’s a detailed guide on how to navigate the donors tax in the Philippines and avail of tax rebates for your donations.

Understanding the Donor’s Tax Rate in the Philippines

A critical aspect of making charitable contributions in the Philippines is familiarizing yourself with the current donor’s tax rate. As of recent updates, the donor’s tax rate is set at a flat rate of 6% for donations exceeding ₱250,000 annually. This threshold applies cumulatively over the course of a calendar year, meaning that the first ₱250,000 of your total donations is not subject to the donor’s tax. It’s important for donors to calculate their contributions carefully to determine if their donations will be subject to this tax rate. This knowledge not only aids in financial planning but also ensures that donors are fully informed about the potential tax implications of their generosity.

Selecting a Qualified Donee Organization

To qualify for a tax rebate, it’s crucial that your donations go to organizations recognized by the Bureau of Internal Revenue (BIR). Eligible entities include charitable institutions, non-profit organizations, and non-government organizations (NGOs) duly registered with the BIR. A comprehensive list of these qualified donee organizations can be found on the BIR’s official website, ensuring your contributions are directed towards approved beneficiaries.

Documentation of Your Donation

Upon making a donation, it’s essential to obtain a receipt or certificate from the receiving organization. This document should clearly state the organization’s name, the donation amount, and the date the donation was made. This receipt serves as your ticket to claiming a tax rebate, so keeping it safe is imperative.

Claiming Your Tax Rebate

When filing your annual income tax return, you have the opportunity to claim your tax rebate. The rebate amount is a percentage of your donation, with rates varying based on the recipient organization:

  • 100% Rebate for Donations to Accredited NGOs: Donations made to BIR-accredited NGOs allow for a tax rebate equal to the full amount of the donation.
  • 50% Rebate for Charitable Institutions and Non-Profit Organizations: Contributions to these entities qualify for a tax rebate equivalent to half of the donated amount.

However, it’s important to be aware of the limitations set on the total amount eligible for tax rebates. Individual taxpayers can deduct donations up to 10% of their taxable income, while corporations are allowed a deduction limit of 5% of their net taxable income. Here is the form that you will use to declare this: Donor’s Tax Return 1800

Spotlight on Qualified Donee Organizations

The Philippines is home to numerous reputable organizations committed to various causes. Here are just a few examples:

  • Philippine Red Cross: Known for its disaster relief efforts and blood donation drives.
  • Gawad Kalinga: Focused on eradicating poverty through community development and sustainable programs.
  • Caritas Manila: Offers a wide range of programs aimed at uplifting the poor and marginalized, including education and livelihood projects.
  • Bantay Bata: An initiative of ABS-CBN Foundation, dedicated to protecting and assisting abused children.


Understanding and taking advantage of the incentives for donors tax in the Philippines not only benefits you financially but also supports the vital work of various charitable organizations. By ensuring your donations go to qualified donee organizations and properly documenting your contributions, you can make a significant impact while enjoying tax rebates. Remember, every contribution counts towards building a stronger, more compassionate society.

Read more here: Tax Reform: Using an Online Tax Calculator in the Philippines

5 thoughts on “Understanding Donors Tax in the Philippines”

    1. Hello!

      The rules on donations generally apply to all types of taxpayers, including those who availed the 8% tax rate. While the 8% tax rate simplifies the income tax computation, it doesn’t exempt you from the regulations related to donations. You’ll still need to adhere to the applicable guidelines and regulations when it comes to charitable contributions and donations, regardless of your chosen tax rate.

      1. Can we apply for the rebate through Taxumo or do we have to go directly to BIR to claim it? I rarely see this being tackled online (certificate of donation for freelancers) so hope you can answer my question. Thank you!

        1. Hello FG,

          Good day!

          For tax refunds, this has to be processed by the taxpayer themselves directly through their RDO. We can have you referred to our CPA partners for this if you need assistance and you are within Manila area. 🙂

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