Donations, including cash donations, are generally subject to six percent (6%) donor’s tax based on the total gifts in excess of Two Hundred Fifty Thousand Pesos (PhP250,000.00) exempt gift made during the calendar year.

The Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 10-2026 to clarify the documentary requirements for purely cash donations.

The said RMC provides that donor’s tax return for purely cash donations shall be filed electronically and the donor’s tax due thereon (if any) shall be paid manually through any of its authorized agent banks or electronically through available payment channels.

Further, 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 having jurisdiction over the residence of the donor (for individuals) or where the donor is registered (for individuals); or the Large Taxpayer’s Division where the donor is registered (for large taxpayers):

  1. Notarized Deed of Donation;
  2. Proof of transfer of cash (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 for individual donor and done, or Secretary’s Certificate/Board Resolution/s for non-individual taxpayers; and
  7. Taxpayer’s Identification Numbers of the parties.

For cash donations made to accredited donee institutions under Section 34(H) of the Tax Code, the foregoing documents shall serve as evidence of transaction to support future claims for deductions from gross income, in addition to the Philippine Council for NGO Certification Accreditation issued by the BIR to the donee.

The BIR also clarified that an electronic Certificate Authorizing Registration (eCAR) is not required for purely cash donations.