DSWD reiterates policies on tax-free foreign donations

To allow the efficient and transparent processing of donations for victims of calamities, the Department of Social Welfare and Development (DSWD) has reiterated its policy on the duty-free entry of foreign donations.

DSWD Secretary Virginia Orogo reminded the government to follow the department’s Administrative Order (AO) 11 series of 2012 which aims to provide “hassle-free” experience for foreign donors.

“Ours is a country prone to natural disasters. As such, many generous individuals abroad usually send donations to the country to help our kababayans who have been affected by calamities. To provide our foreign donors with a hassle-free experience, we would like to reiterate our policies on the duty-free and VAT-free importation of these well-intended donations under our Administrative Order (AO) No. 11 Series of 2012,” Orogo said in a statement on Tuesday.

Under the administrative order, national government agencies, government-owned and controlled corporations (GOCCs), local government units (LGUs) and registered, licensed and accredited social welfare and development agencies (SWDAs) are qualified to accept duty and tax free importations of donations.

Orogo warned that failure to follow these policies may result with the blocking of tax-exempt foreign donations from entering the country..

“There are policies that govern the availment of duty and tax-free entry of foreign donations and failure to abide by these may result in non-entitlement,” Orogo said.

Orogo added that consignees of donations or companies responsible for the receipt of foreign shipments should inform donors about the requirements and procedures.

Donors are required to present these documents to SWDAs for the issuance of certification of tax-free donations:

The application form, along with these documents, should be submitted in three copies by the consignee at least two weeks before the scheduled arrival of foreign donations in the country.

The documents must be filed with a processing fee of P1,000 paid at the concerned DSWD Field Office where the donations would take place.

Foreign donations also require an additional certification from the National Risk Reduction and Management Council or Local Sanggunian to ensure that the proposed areas of distribution had been declared as calamity areas.  /muf

Read more...