Allowable Deductions Under Sections 34 and 35 of The NIRC
Allowable Deductions Under Sections 34 and 35 of The NIRC
Allowable Deductions Under Sections 34 and 35 of The NIRC
Subject to limits:
1. Contributions for nonpriority activities for the
use of the government of the Philippines or
any subdivision thereto;
2. Donations made to NSNP organizations,
limited deductibility in an amount not in
excess of 10% for an individual donor, and
5% for corporate donors
Deductibility of contributions to pension 1. Employer has an established pension plan
trusts for the payment of pension to employees;
2. Pension plan is reasonable and sound;
3. Funded by the employer;
4. Amount contributed is not controlled by
employer; and
5. Payment has not yet been allowed as a
deduction previously.
Deductions under Special Laws Expanded Breastfeeding Promotion Act
1. Deduction applies to the taxable year
where expenses are incurred;
2. Health and non-health facilities comply
with the law within 6 months after
approval;
3. Secure a “working mother baby friendly
certificate” from DOH and filed with the
BIR;
A: Yes. To be allowed as deduction, the expense must be: (a) both ordinary and necessary; (b)
incurred in carrying a business or trade; and (c) paid or incurred within the taxable year, then, it
shall be allowed as a deduction from the gross income. It was likewise ruled that not only must
the taxpayer meet the business test, he must substantially prove by evidence or records the
deductions claimed under the law, otherwise, the same will be disallowed.