Capitalizing on tax holidays and exemptions for environmental firms, organizations, and donors in the Philippines
What are Tax Benefits?
To encourage organizations that help underdeveloped sectors and services, the Philippine government provides incentives to qualified individuals or organizations to reduce various tax liabilities, in the form of tax benefits. A non-government organization (NGO) or non-profit organization (NPO) engaged in philanthropy or social welfare, research and scientific study, sports development, cultural development, or education may claim tax exemptions on activities that are not conducted for profit.
Donors can also avail of tax benefits. They are allowed a tax deduction from gross income as well as exemption from donor's tax when they donate to certain types of institutions.
Why do they matter?
To be entitled to these exemptions, NGOs or NPOs must secure the proper accreditation from relevant government agencies. They must also comply with requirements as regards the use of funds that they receive as donations.
Environmental firms in the Philippines engaged in initiatives that address climate and environmental concerns, protect and conserve natural resources, or promote sustainability may fall under the scope of tax-exempted activities.
Donations made to accredited NGOs and NPOs, to be exempt from donor’s tax, are also subject to certain administrative requirements. Aside from this, a donor can also potentially claim a deduction of up to 150% from their gross income.
However, many are unaware of the tax benefits available to them under the law, or lack legal and technical knowledge to take advantage of these benefits.
How can we help?
Parabukas helps environmental NGOs and their donors by analyzing their activities and pinpointing the tax benefits for both parties. Since Parabukas is familiar with the policy landscape for both corporate compliance and environmental issues, we can help you and your organization navigate through these regulatory waters, to find solutions to maximize tax benefits.
Should a donor want to take maximum advantage of gross income tax deductions through donations to charitable institutions, PB matches the donor to a donee and facilitates all requirements and deadlines for PCNC accreditation certification, Notices of Donation, and other necessary paperwork.