The Bureau of Internal Revenue (BIR) has issued a significant update to tax regulations concerning cash donations, with Revenue Memorandum Circular No. 10-2026 released on February 4, 2026. This circular provides comprehensive guidelines for donors making cash gifts to natural or juridical persons, including various organizations, foundations, and institutions, during the same calendar year.
Key Provisions and Clarifications
The circular reiterates the mandatory obligation for donors to file the required tax returns and remit any applicable taxes. It also addresses critical questions regarding the necessity of securing an Electronic Certificate Authorizing Registration (eCAR) for purely cash donations.
Filing and Payment Procedures
Donor's Tax can be paid through multiple channels: electronically via the BIR's available ePayment systems or manually through designated Authorized Agent Banks. Concurrently, tax returns must be filed electronically using platforms such as the eBIR Forms Facility, Electronic Filing and Payment System (eFPS), or authorized taxpayer service provider applications.
Within 30 days after the gift is completed, donors must submit the following documentary requirements:
- Proof of cash transfer, which may include official receipts, acknowledgement letters, validated deposit slips, or fund transfer confirmations.
- Proof of filing the donor's tax return using BIR Form No. 1800.
- Proof of payment for donor's tax, if applicable.
- A Certificate of Donation for tax-exempt donees.
- Valid government-issued identification for individual donors and donees, or Secretary Certificate/Board Resolution for non-individual taxpayers.
- Taxpayer Identification Numbers for both donor and donee.
These documents should be filed with the Revenue District Office overseeing the donor's residence for individuals, the donor's registration location for non-individuals, or the Large Taxpayers Division for large taxpayers. Additionally, these documents support future claims for deductions from gross income, particularly for cash donations to accredited donee institutions under Section 34(H) of the Tax Code, as amended, which require Philippine Council for NGO Certification Accreditation issued by the BIR.
Electronic Certificate Authorizing Registration (eCAR)
The circular clarifies that there is no need to secure an eCAR for cash donations, as such donations do not involve registrable property requiring title transfer under any government registry. This simplification aims to streamline the donation process and reduce administrative burdens for taxpayers.
The new guidelines took effect immediately upon publication on the BIR official website. Taxpayers are advised to review these updates carefully to ensure compliance with the latest regulations.
