Presidential Decree No. 507 (PD 507) — Exempting Donations And/Or Contributions and Bequests to Social Welfare, Cultural and Charitable Institutions from Certain Taxes and Providing Tax Allowance Therefor.
WHEREAS, non-profit social welfare, cultural and charitable
institutions operate generally on funds generated through donations;
WHEREAS, these non-profit institutions are viable
instruments for social welfare and cultural development of the country;
WHEREAS, the success of the mission of these institutions
depends largely on the sufficiency of their financial resources; and
WHEREAS, it is necessary to encourage donations to these
institutions in order to enable them to acquire the necessary funds for
their continued operations.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order;
SECTION 1. Any provision of law, decree, rules and
regulations to the contrary notwithstanding, all gifts, bequests,
donations and/or contributions to social welfare, cultural and
charitable institutions, no part of the net income of which insures to
the benefit of any individual, shall be exempt from the donor's and
estate taxes and shall be deductible in full in computing the taxable
net income of the donor: Provided, however, That not more than
thirty per centum of said gifts and bequests shall be used by
such donee for administration purposes.
The Secretary of Finance, upon recommendation of the Commissioner
of Internal Revenue, shall promulgate rules and regulations to implement
this Decree.
SEC. 2. All laws, decrees, orders,
rules and regulations inconsistent herewith are hereby repealed and/or
modified accordingly.
SEC. 3. This Decree shall take effect
immediately.
Done in the City of Manila, this 16th day of July, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
