KIND OF TAX CHARITABLE RELIGIOUS NON-STOCK, NON- PROPRIETARY PROPRIETARY GOVERNMENT GOVERNMENT GOVERNMENT

INSTITUTIONS (CI) INSTITUTIONS (RI) PROFIT EDUCATIONAL HOSPITALS/CHARITABLE EDUCATIONAL AGENCY OWNED AND
EDUCATIONAL INSTITUTIONS HOSPITALS INSTITUTIONS (GA) CONTROLLED
INSTITUTIONS (PEI) (PH/CH) (GEI) CORPORATIONS
(NSNPEI) (GOCC)
REAL PROPERTY Property Property Property ACTUALLY, Property ACTUALLY, Property ACTUALLY, Property owned by Property owned by Property owned by
TAX ACTUALLY, ACTUALLY, DIRECTLY, DIRECTLY, DIRECTLY, EXCLUSIVELY the PH Gov’t, or the PH Gov’t, or the PH Gov’t, or
DIRECTLY, DIRECTLY, EXCLUSIVELY (ADE) EXCLUSIVELY (ADE) (ADE) used for Charitable Political Political Political
EXCLUSIVELY (ADE) EXCLUSIVELY (ADE) used for used for Purpose = EXEMPT Subdivisions = Subdivisions = Subdivisions =
used for Charitable, used for Charitable, Educational Educational NOT (ADE used) = TAXABLE EXEMPT EXEMPT EXEMPT
Religious, Religious, Purpose = EXEMPT Purpose = EXEMPT
Educational Educational NOT (ADE used) = NOT (ADE used) = Beneficial Use Beneficial Use Beneficial Use
Purpose = EXEMPT Purpose = EXEMPT TAXABLE TAXABLE pertains to a Non- pertains to a Non- pertains to a Non-
NOT (ADE used) = NOT (ADE used) = Exempt Entity for Exempt Entity for Exempt Entity for
TAXABLE TAXABLE Consideration = Consideration = Consideration =
TAXABLE TAXABLE TAXABLE
CONSTI, 234 LGC B CONSTI, 234 LGC B Article XIV, Section CONSTI, 234 LGC B
4 (3) of Constitution 234 LGC B
234 LGC A 234 LGC A LGC 234 C
INCOME TAX (AS Income derived by Income derived by Income derived by Subject to tax at preferential rate of 10% Income derived by Income from the Treated as ordinary
SUCH INCOME) CI as such = NOT RI as such = NOT NSNPEI as such = If the related trade or activity exceeds 50% GEI as such = NOT exercise of any corporations and
TAXABLE TAXABLE EXEMPT TAXABLE Essential Gov’t subject to NIT of
Income derived If unrelated trade or activity exceeds 50% = Function = Exempt 30%
from activities subject to 30% NIT tax on Corporations
conducted for profit Except:
(ADE used) = GSIS;
EXEMPT SSS;
Income derived PHIC;
from activities Local Water
conducted for profit Districts.
Sec. 30, E Sec. 30, E (ADE used) = Sec. 30, I Sec. 32,7, b Sec. 27 C
RENTAL INCOME Income derived Income derived EXEMPT Income derived Income derived Income derived
(CONDUCTED FOR from activities from activities from activities from activities from activities
PROFIT) conducted for profit conducted for profit NOTE: Sec. 27 B conducted for profit conducted for profit conducted for profit
DEPOSITS = TAXABLE = TAXABLE Prove by: Audited = TAXABLE = TAXABLE = TAXABLE
(CONDUCTED FOR Statements; Sec 30, last para. Income derived Income derived
PROFIT; PASSIVE Income derived from activities from activities
INCOME) WITHOUT PROOF of from activities conducted for profit conducted for profit
(ADE used) = conducted for profit = TAXABLE = TAXABLE
TAXABLE = TAXABLE
 De La Salle Ruling:
Sec. 30, last para. of
Sec 30, last para. Sec 30, last para. NIRC =N/A to Sec 30, last para. Sec. 32,7, b Sec. 27
NSNPEI
Consti
DONATIONS Donations are income but these are NOT Operating Income = EXCLUDED Donations are income but these are NOT Operating Income =
(Viewpoint of the EXCLUDED
Recipient) Sec. 32, B, 3 Sec. 32,7, b
DONOR’S TAX/ Gifts in favor of an educational and/or charitable, religious, cultural, social welfare corporation, institution, accredited Gifts made to or for the use of the Nat’l Gov’t or any entity created
ESTATE TAX nongovernment organization, trust or philanthropic organization or research institution if only 30% shall be used by by any of its agencies which is not conducted for profit, or to any
(Viewpoint of the done for administration purposes = EXEMPT from DONOR’s TAX political subdivision = EXEMPT from DONOR’s TAX
Donor) Sec 101 A 2 Sec 101 A 1

All bequests, legacies, devises or transfers to social welfare, cultural and charitable institutions which inures to the All bequests, legacies, devises or transfers to or for the use of the
benefit of any individual = EXEMPT from ESTATE TAX PH Gov’t or any political subdivision for exclusively public purpose
Sec 87, D = DEDUCTIBLE FROM ESTATE tax.
Sec 86, A, 6
Can be claimed as DEDUCTIONS.
34 H 1 Can be claimed as DEDUCTIONS.
CIE= NO TAX BENEFIT.
CIE= NO TAX BENEFIT.
SEP/SEI = IF Donor gives to Priority Projects by NEDA:
Individual = 10% Deduction of the Taxable Income;
Corp. = 5% Deduction of the Taxable Income; SEP/SEI/MIE/Corp. = FULL AMOUNT DONATED is DEDUCTIBLE
provided:

Donor gives to NOT to Priority Projects, but in GENERAL:

SEP/SEI/MIE/Corp =
Individual = 10% Deduction of the Taxable Income.
Corp = 5% Deduction of the Taxable Income.