On February 4, 2026, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 10-2026. The circular covers cash donations made during the same calendar year, to natural or juridical persons including organizations, foundations, and institutions.
The Circular reiterates the obligation of donors to file the required return and remit the corresponding taxes, if any. It further clarifies whether or not the issuance of an Electronic Certificate Authorizing Registration (eCAR) of purely cash donations is necessary.
Clarifications
1. Manner of filing of the return and payment of tax - Donor’s Tax may be paid either electronically through available ePayment channels of the BIR or manually through designated Authorized Agent Banks (AAB). The concurrent tax returns shall be filed electronically in any of the available platforms: eBIR Forms Facility, Electronic Filing and Payment System (eFPS), tax returns filing applications and/or solutions of Authorized Taxpayer Service Providers (ATSPs).
The following documentary requirements shall be submitted within thirty (30) days after the date the gift is made or completed:
a. Proof of cash transfer (e.g., official receipt, acknowledgement letter, validated deposit slip, fund transfer confirmation);
b. Proof of filing of donor's tax return (BIR Form No. 1800);
c. Proof of payment of donor's tax (if applicable);
d. Certificate of Donation (for tax-exempt Donee);
e. Valid government-issued identification (IDs) for individual Donor and Donee or, Secretary's Certificate/Board Resolution for non-individual taxpayers; and
f. Taxpayer Identification Number (TIN) of Donor and Donee.
These shall be filed with the Revenue District Office (RDO) having jurisdiction over the residence of the Donor (if individual), where the Donor is registered (if non-individual); or to the Large Taxpayers (LT) Division where the Donor is registered (if large taxpayer).
The aforementioned documents shall also support future claims for deductions from gross income, aside from the Philippine Council for NGO Certification (PCNC) Accreditation issued by the BIR to the Donee for cash donations. This applies to cash donations made to accredited Donee institutions enumerated in Section 34(H) of the Tax Code, as amended.
2. Electronic Certificate Authorizing Registration (eCAR) - There is no need to secure an Electronic Certificate Authorizing Registration (eCAR) for cash donations as it is not a registrable property requiring transfer of title under any government registry.
The Circular shall take effect immediately upon its publication on the BIR official website. Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 25 February 2025
