BIR Clarifies Tax Rules for Purely Cash Donations Under RMC No. 010-2026

The Bureau of Internal Revenue (“BIR”) has issued Revenue Memorandum Circular (“RMC”) No. 010-2026, providing clarifications on the tax treatment, documentation requirements, and filing procedures for donations consisting exclusively of cash. The Circular aims to streamline compliance for donors and clarifies that an Electronic Certificate Authorizing Registration (“eCAR”) is not required for purely cash donations.

The guidelines apply to purely cash donations made within the same calendar year to any natural or juridical person, including organizations, foundations, and institutions. Donors are required to file the appropriate returns and pay any applicable taxes in accordance with the National Internal Revenue Code, as amended (“Tax Code”). The Donor’s Tax Return must be filed electronically through platforms such as the eBIRForms Facility, the Electronic Filing and Payment System (“eFPS”), or other authorized tax service providers. Payments may be made manually through Authorized Agent Banks or electronically via the BIR’s ePayment channels.

To ensure compliance, donors must submit specified documents to the Revenue District Office (“RDO”) with jurisdiction over their residence or principal place of business within thirty (30) days from the completion of the gift. These include a notarized Deed of Donation, proof of cash transfer (such as official receipts, bank deposit slips, or fund transfer confirmations), evidence of filing (BIR Form No. 1800) and tax payment, if applicable, and identification documents for both the donor and the donee. For non-individual taxpayers, Secretary’s Certificates or Board Resolutions are also required. In the case of tax-exempt donees, a Certificate of Donation must be provided.

For donations made to accredited institutions under Section 34(H) of the Tax Code, the required documentation, together with accreditation from the Philippine Council for NGO Certification (“PCNC”), serves as sufficient basis for claiming deductions from gross income.

The BIR explains that cash is not a registrable property subject to title transfer in a government registry; thus, the eCAR process does not apply. The Circular took effect immediately upon publication on the BIR’s official website.