• Regulations
• Conditions for Duty-Free Importation
• Required Documents
• Filing of Application
• Release of Donation
• References

Philippine laws and regulations allow tax and duty exemption privileges for certain donations from overseas.

1. The Tariff and Customs Code of the Philippines (Presidential Decree No. 1464), as amended, provides for exemption from the payment of import duties for the following items:
1. "Imported articles donated to, or for the account of, any duly registered relief organization, not operated for profit, for free distribution among the needy". A certification by the Department of Social Welfare and Development (DSWD) or the Department of Education, Culture and Sports (DECS), as the case may be, would be required. [Section 105 (I)]
2. Books and publications certified by DECS as intended for economic, technical, vocational, scientific, philosophical, historical, or cultural purposes, or those covered by the International Agreement on Importation of Educational Scientific and Cultural Materials or other agreements binding upon the Philippines [Section 105 (s)].

Included in this exemption are bibles, missals, prayer books, Koran, Ahadith and other religious books of similar nature.

3. Those items that may be granted by the President of the Philippines upon the recommendation of National Economic and Development Authority in the interest of national economic development. [Last paragraph of Section 105]
4. Those items granted to government agencies, instrumentalities or government-owned or controlled corporations under the provisions of existing contracts, commitments, agreements, or obligations (requiring such exemption) with foreign countries. [Last paragraph of Section 105]
2. Section 109 (y) of the National Internal Revenue Code of 1997 exempts from the value-added tax the "sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements".
3. Presidential Memorandum Order No. 36, s. 1992 also authorizes the "importation and donation of food, medicine and equipment for use in the government relief and rehabilitation programs for calamity affected areas". Endorsement would be required from the Department of Social Welfare and Development for relief items, the Department of Health for medicines, and the Department of National Defense for rehabilitation equipment. The Office of the President issues the necessary clearances for donations under this facility, which will serve as basis for the Bureau of Customs to process and release the donation.
4. Diplomatic Notes No. 1071 of the US Embassy and No. 3001 of the Department of Foreign Affairs provide that the Philippine government will accord duty-free entry into the Philippines, as well as exemption from internal taxation, of supplies of goods approved by the US government, donated to or purchased by the United States voluntary, nonprofit relief and rehabilitation agencies qualified under United States government regulations, and consigned to such organizations, including branches of these agencies in the Philippines which have been approved by the Philippine government.
5. Article XIV Section 4(4) of the Philippine Constitution provides that "subject to conditions prescribed by law, all grants endowments, donations, or contributions used actually, directly, and exclusively for educational purposes shall be exempt from tax".