Author MRTC

Introduction

REVENUE MEMORANDUM CIRCULAR (RMC) NO. 010-2026

This Circular clarifies the tax treatment of purely cash donations under Title III, Chapter II of the National Internal Revenue Code (NIRC) of 1997, as amended, and reiterates donors’ obligation to file the required return and pay any applicable taxes under existing revenue issuances. It also clarifies whether the issuance of an Electronic Certificate Authorizing Registration (eCAR) is required for purely cash donations.

These rules shall apply to donations consisting purely of cash, made during the same calendar year, to natural or juridical persons, including organizations, foundations, and institutions.

Manner of filing of the return and payment of tax.

The donor’s tax return for purely cash donations must be filed electronically through available platforms (e.g., eBIRForms, eFPS, or ATSP applications), with payment made either through an Authorized Agent Bank (AAB) or via the Bureau’s ePayment channels.

The following documentary requirements shall be submitted within thirty (30) days after the date the gift is made or completed to the Revenue District Office (RDO) having jurisdiction over the residence of the Donor (individual)/where the Donor is registered (non-individual); or, for large taxpayers, to the Large Taxpayers (LT) Division where the Donor is registered:

  1. Notarized Deed of Donation;
  2. Proof of cash transfer (e.g., official receipt, acknowledgement letter, validated deposit slip, fund transfer confirmation);
  3. Proof of filing of donor’s tax return (BIR Form No. 1800);
  4. Proof of payment of donor’s tax (if applicable);
  5. Certificate of Donation (for tax-exempt donee);
  6. Valid government-issued identification (IDs) for individual Donor and Donee or, Secretary’s Certificate/Board Resolution for non-individual taxpayers; and
  7. Taxpayer Identification Number (TIN) of Donor and Donee.

For cash donations made to accredited Donee Institutions under Section 34(H) of the Tax Code, the required documents shall serve as proof of the transaction to support any future claims for deductions from gross income. These documents must be presented together with the Philippine Council for NGO Certification (PCNC) Accreditation issued by the BIR to the done institution.

Electronic Certificate Authorizing Registration (eCAR) Requirement

An eCAR shall not be required for donations consisting exclusively of cash donations, as cash is not a registrable property requiring transfer of title under any government registry.

This Circular shall take effect immediately upon publication in the BIR official website and shall remain in force until further amended. All internal revenue officials, employees and others concerned are hereby enjoined to give this circular as wide a publicity as possible.