Socio-economic program donors offered tax perks

The government is offering tax perks to private individuals and firms willing to donate their money to eight programs under this year’s National Priority Plan (NPP).

The National Economic and Development Authority (Neda) identified the priority programs under the 2016 NPP as follows: the Department of Education’s adopt-a-school program, Department of Science and Technology (DOST)-Food and Nutrition Research Institute’s malnutrition reduction program, DOST-Philippine Science High School System’s special science secondary education program, as well as Social Housing Finance Corp./Housing and Urban Development Coordinating Council’s community mortgage and high-density housing programs.

Also part of the 2016 NPP are four projects of the Department of Health—child health development program, expanded program on immunization, health facilities enhancement program, as well as responsible parenthood and family planning program.

“To help finance expenditures in these areas and thus free up public resources for other developmental activities, the government would encourage private sector donations for these priority programs and projects,” the Neda said.

It noted that under the Tax Code, “any project/program/activity included in the NPP entitles its individual or corporate donors to full deduction of said donation from the donor’s taxable income for the year when the donations were made.”

Donors’ tax deductions can be claimed upon filing the income tax return the succeeding year. To avail of this tax incentive, the Neda will issue a certification to the donor that he or she has been included in the NPP program.

The annual NPP lists down the government’s priority initiatives in the sectors of economic development, education, health, human settlements, science and culture and youth and sports development.

This year’s NPP included for the first time the DOST’s special science secondary education program, which was aimed at “[developing] young Filipinos with high aptitude in science and mathematics to become the country’s future critical mass of professionals in science and technology through the provision of quality resources to [Philippine Science High School] scholars.”

The DOST’s malnutrition reduction program, meanwhile, involves the “commercialization of complementary blends and snack foods” for young children.