Adopt A School Program Process And Procedures 1o4zz

c ` Construction and repair of school bldgs. ` School supplies for school children ` Teacher trainings ` Scholarships for students and teachers ` E-libraries, multimedia packages and computer hardwares and softwares ` Health and nutrition interventions ` Various other interventions Sample computation ` Actual Contributions received In 2007

P119 Mil.

` Additional 50% Deduction as Tax Incentive Granted under R.A. 8525

59 Mil.

` Total Allowable Deductions for Income Tax Purposes

P178 Mil

LEGAL BASIS REPUBLIC ACT 8525 (Adopt-a-School Law of 1998) PURPOSE OF RA 8525 !" INCENTIVES GRANTED ` #$% & #"

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INCENTIVES GRANTED UNDER T E REGULATIONS  Deduction from its/his gross income of 150% of the value of the donation made under the Program (100% under Sec 3(H) of the Tax Code and an additional 50% under RA 8525 as promulgated by the this Regulations (Sec 3 (a)): ` The deduction shall be availed of in the taxable quarter/year in which the expenses have been paid or incurred; ` The taxpayer can substantiate the deduction with sufficient evidence, such as ORs or delivery receipts and other adequate records.  Exemption of assistance made by the donor from the payment of donor¶s tax pursuant to Secs 101 (A)(2) and (B)(1) of the Tax Code of 1977 (Sec 3 (b))  In case of foreign donations, VAT and excise tax on the importation of goods under the program shall be assumed by DepED, CHED, TESDA or the importer thereof, except in cases where the importation is exempt from VAT under Sec. 109 of the Tax Code (Sec. 4 (a)) Sec 34 ( ) of the Tax Code 100% Deductibility of Donations and Charitable Contributions ` (2)(a) Donations to govt. or any of its political subdivisions or agencies including fully owned corporations to be for priority activities in education, health, youth and sports development, human settlements, science and culture and on economic development according to the National Priority Plan ` (2)(b) Donations to foreign institutions or international organizations in pursuance of the agreements and treaties ` (2) (c) NGOs (non-profit domestic corporations) exclusively for scientific, research, educational character building and youth and sport development, health, social welfare or charitable purposes provided: ` Part of its income will not inure to benefit of any individual ` Level of expenses not more than 30% of total expenses

) " O O Donation Sales Less: Cost of Sales Gross Income Less: Operating Expenses Salaries, utilities, etc. Donation to a public sch. 4 ; 4 < 4 < Net Income

No Donation Under ASP

175.0 85.0 90.0

175.0 85.0 90.0

15.0

15.0 15.0 75.0 26.3 48.7

2.0*

17.0 73.0 25.2 47.8

=$$% < !> 0" < , ) " No Donation

Donation Under ASP

Income Before Income Tax Additional 50% deduction for donations under RA 8525

75.0

73.0

0.0

1.0

Taxable Income Income Tax (35% of taxable income)

75.0 26.3

72.0 25.2

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Total

150%

P 3 Mil

r " Example

,

Valuation Guides

6 +

+

school sites, lots, land

5 9 9 &

Personal property

Vehicles, furniture, etc.

A

Services

training for teachers and school heads, internet connection

5 <



Goods

textbooks, school supplies, reading materials, laboratory equipment, school building, computer units,

5 A

O O O `Copy of notarized Memorandum of Agreement `Copy of notarized Deed of Donation and Acceptance [ O O 3 +A / , +

`6 + `6 & `, < `6 A <

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