Legal Updates Archives

19 May

Court Operations During the Modified Enhanced Community Quarantine (MECQ) and General Community Quarantine (GCQ)

Date May 19, 2020
Author Atty. Eduardo A. Martinez

Attys. Kristine R. Bongcaron and Ernest Gene P. Reyes

In light of certain high-risk areas in the country, the Inter-Agency Task Force (IATF) for the Management Emerging Infectious Diseases issued Resolution No. 35[1] placing the Province of Laguna, the National Capital Region, and the City of Cebu under Modified Enhanced Community Quarantine (MECQ) and other areas under General Community Quarantine (GCQ) from May 16, 2020 until May 31, 2020.

Under both the MECQ and GCQ, certain restrictions on travel and lockdown measures were eased. With such easing of restrictions, the Supreme Court of the Philippines issued Administrative Circular No. 39-2020 dated May 14, 2020[2] and Administrative Circular No. 40-2020 dated May 15, 2020[3], to establish the court processes and the filing of documents in these areas, including videoconferencing of hearings and electronic submissions of documents particular to areas under MECQ and GCQ.

A. General Guidelines

1. Physical access to courts

· MECQ

Under Administrative Circular No. 39-2020, all courts shall remain physically closed to all court users until May 31, 2020 and may be initially reached only through their respective hotline numbers and email addresses as posted on the Supreme Court website.

The courts shall however, remain to operate form 9:00am to 3:00pm, Monday to Friday, until May 29, 2020. All electronic communications must be transmitted to and received by the courts from 8:30 am to 2:00 pm for these to be acted on the same day.

For a list of court hotlines and email addresses, kindly refer to this link: http://sc.judiciary.gov.ph/hotlines/ .

· GCQ

Under Administrative Circular No. 40-2020, all courts in the areas shall be physically open from May 18, 2020 to May 29, 2020 from 9:00 am to 4:00 pm, but shall function only with a skeleton staff. All electronic communications must however be transmitted to and received by the courts from 8:30 am to 3:30 pm for these to be acted on the same day.

While the courts shall be physically open, all inquiries and requests for documents and services shall be initially coursed only through the hotline numbers and email address accounts of the courts.

2. Raffle of cases

· MECQ

The raffle of cases shall proceed electronically and through videoconferencing. However, in the exigency of service, justices, judges, and court officials, together with their skeleton staff, may go to their respective courts.[4]

· GCQ

The raffle of cases shall commence on May 18, 2020 electronically in eCourt stations or regularly in non-eCourt stations, provided that only members of the Raffle Committee will attend the raffle. No raffle through videoconferencing shall be conducted in the court stations.[5]

3. Extension of period to file in MECQ and GCQ areas

The filing of petitions, motions, pleadings, and other submissions that fall due up to May 31, 2020 is extended for thirty (30) days to be counted from June 1, 2020. However, these submissions may be filed within the reglementary period on or before May 31, 2020 through electronic means, if preferable and able. Also, periods for court actions with prescribed periods are likewise extended for thirty (30) calendar days counted form June 1, 2020.[6]

4. Prohibited and allowed gatherings in MECQ and GCQ areas

Civil weddings may be solemnized, provided that the parties shall not exceed five (5) for areas under MECQ and ten (10) for areas under GCQ. Further, rules as to social distancing and medical and hygiene protocols should be strictly followed. [7]

All official meetings, seminars and trainings are prohibited until May 31, 2020 except those that may be held through videoconferencing or allowed by the Chief Justice or by Judiciary Task Force on COVID-10.[8]

B. Specific Guidelines

1. Courts under MECQ

Supreme Court

The Supreme Court shall continue to receive petitions and pleadings electronically in accordance with the rules discussed earlier under A. General Guidelines, Physical Access to Courts, MECQ.[9]

Court of Appeals, Sandiganbayan, and Court of Tax Appeals

The Court of Appeals, Sandiganbayan, and Court of Tax Appeals shall continue to receive petitions and pleadings electronically as discussed under A. General Guidelines, Physical Access to Courts, MECQ.[10]

The said courts shall continue to resolve pending cases, and regular hearings shall be conducted through videoconferencing. The decisions of these courts may be promulgated or issued once the courts are fully operational, except those on urgent matters which shall be promulgated or issued during the MECQ.[11]

Regional Trial Courts, Family Courts, and First Level Courts in MECQ

a. Filings and court submissions

All initiatory pleadings in criminal and civil cases, including criminal complaints, informations and applications for bail may be filed electronically with these courts through their respective email addresses. Pleadings and other court submissions on pending cases may likewise be submitted electronically with the branch where the case is pending should the branch have an official email address. Otherwise, the submissions may be filed electronically with the Office of the Clerk of Court.[12]

b. Hearings through videoconferencing

All courts enumerated under Administrative Circular No. 37-2020[13] and Office of the Court Administrator Circular No. 93-2020[14] are now authorized to hear all matters pending before them, in both criminal and civil cases, through videoconferencing. Under exceptional circumstances, in-court hearings may likewise be conducted by these courts.[15]

For courts which are not authorized to conduct hearings through videoconferencing, they may conduct in-court hearings only on urgent matters and other concerns to expedite the proceedings

For a list of authorized courts for videoconferencing hearings, kindly refer to these links:

http://sc.judiciary.gov.ph/11310/ and http://sc.judiciary.gov.ph/11249/.

c. Taking of testimony of a witness

The taking of the testimony of a witness through videoconferencing shall be allowed. Documents and affidavits shall be received by the court and the parties at least three (3) days prior to the scheduled videoconferencing hearing if a witness will be testifying on the following:

(i) duly subscribed written statements given to law enforcement or peace officers, or

(ii) affidavits or counter-affidavits submitted before the investigating prosecutor, or

(iii) judicial affidavits, subject to additional direct and cross-examination questions.[16]

2. Courts under GCQ

a. Filings and court submissions

Modes of filings and extended deadlines for court submissions are the same as with Regional Trial Courts, Family Courts, and First Level Courts under MECQ, with the addition that all courts in GCQ areas shall receive all the petitions and pleadings filed by any party.[17]

b. Hearings

The hearings either in-court or through videoconferencing in all matters pending before the courts in GCQ areas shall be authorized. However, health hygiene and medical standards and social distancing shall be strictly observed in in-court hearings.[18]

In all videoconferencing hearings, justices or judges shall preside from the courtrooms or chambers at all times unless in exceptional circumstances where they may preside at home.

c. Taking of testimony of a witness

The guidelines as to taking of testimony of a witness in courts in GCQ areas is the same as those provided for Regional Trial Courts, Family Courts, and First Level Courts in MECQ areas mentioned above.[19]

d. Decisions and orders

Decisions and orders of courts in GCQ areas may be promulgated and released during the period of GCQ. Likewise, service of writs and other courts processes may proceed.[20]

Although under the MECQ and GCQ restrictions on the lockdown measures and travel of persons have been slightly eased, this does not mean that the threat of COVID-19 is no longer present. Hence, the need for strict observation and compliance with the rules promulgated by the Supreme Court.

It is apparent from the circulars discussed above that they are intended to be effective only until May 31, 2020. The expected “second wave” of COVID-19 cases may however push the Supreme Court to prolong the period during which Administrative Circulars Nos. 39 and 40 are to be observed, if not to return to the more stringent measures under its ECQ issuances. Considering uncertainties in relation to the COVID-19 situation in the country, rather than issuing various interim rules, it may be high time for the Supreme Court to issue an all-encompassing set of rules that may be observed and implemented at whatever level of lockdown or quarantine, for as long as the COVID-19 threat is present.

[1] Inter-Agency Task Force for the Management Emerging Infectious Diseases Resolution No. 35, dated May 11, 2020.

[2] Administrative Circular No. 39-2020, dated May 14, 2020 on Modified Enhanced Community Quarantine in Certain Areas Until 31 May 2020.

[3] Administrative Circular No. 40-2020, dated May 15, 2020 on Courts in Areas Placed under General Community Quarantine from 16 to 31 May 2020.

[4] 3, Administrative Circular No. 39-2020, dated May 14, 2020.

[5] 5, Administrative Circular No. 40-2020, dated May 15, 2020.

[6] 4, Administrative Circular No. 39-2020, dated May 14, 2020; 11, Administrative Circular No. 40-2020, dated May 15, 2020.

[7] 5, Administrative Circular No. 39-2020, dated May 14, 2020; 10, Administrative Circular No. 40-2020, dated May 15, 2020.

[8] 6, Administrative Circular No. 39-2020, dated May 14, 2020; 14, Administrative Circular No. 40-2020, dated May 15, 2020.

[9] 8, Administrative Circular No. 39-2020, dated May 14, 2020.

[10] 12, Administrative Circular No. 39-2020, dated May 14, 2020.

[11] 13 &14, Administrative Circular No. 39-2020, dated May 14, 2020.

[12] 16, Administrative Circular No. 39-2020, dated May 14, 2020.

[13] Administrative Circular No. 37-2020, dated April 27, 2020 on Pilot Testing of Hearings of Criminal Cases Involving Persons Deprived of Liberty Through Videoconferencing.

[14] Office of the Court Administrator Circular No. 93-2020, dated May 4, 2020 on Implementation of Supreme Court Administrative Circular No. 37-2020 on Pilot Testing of Hearings of Criminal Cases Involving Persons Deprived of Liberty Through Videoconferencing.

[15] 17, Administrative Circular No. 39-2020, dated May 14, 2020.

[16] 18, Administrative Circular No. 39-2020, dated May 14, 2020.

[17] 4, Administrative Circular No. 40-2020, dated May 15, 2020.

[18] 6, Administrative Circular No. 40-2020, dated May 15, 2020.

[19] 9, Administrative Circular No. 40-2020, dated May 15, 2020.

[20] 12, Administrative Circular No. 40-2020, dated May 15, 2020.

13 May

Enhanced and General Community Quarantine – Court Operations and Processes

Atty. Eduardo A. Martinez, Atty. Ernest Gene P. Reyes

Legal Updates

Author Atty. Eduardo A. Martinez, Atty. Ernest Gene P. Reyes

To mitigate the spread of COVID-19 in the Philippines, the entire Luzon region was placed under Enhanced Community Quarantine (ECQ) from 17 March until 13 April 2020, which was further extended to 30 April 2020, and until 15 May 2020 at least in respect of certain areas, including Metro Manila. Provinces and cities not covered by the ECQ were placed under a General Community Quarantine (GCQ) starting 1 May 2020 until 15 May 2020.

In line with the appeal of the Government for the general public to stay home to control the further spread of COVID-19, the Supreme Court implemented guidelines to limit movement and travel of justices, judges and their skeletal staff.[1] It likewise issued guidelines on the procedure for filing motions, pleadings, and other court submissions during the ECQ and GCQ period.[2]

In order to curb the spread of infection in detention facilities and restrict movement and travel of court users, the Supreme Court also issued guidelines on hearings and provisional liberty in cases involving persons deprived of liberty.[3]

Physical closure of courts

Administrative Circular No. 35-2020 requires all courts in the ECQ areas to be physically closed except for urgent matters. Litigants, lawyers, prosecutors and the general public are therefore advised to first contact the proper court through any of its identified hotlines, email addresses and Facebook accounts to determine if a matter is urgent.

A list of the hotlines, email addresses and Facebook accounts of all courts nationwide may be accessed through – http://sc.judiciary.gov.ph/hotlines/.

Administrative Circular No. 36-2020, on the other hand, requires all courts in the GCQ areas to open beginning 4 May 2020 to act on urgent matters only. Under the said circular, the Supreme Court restricted the presence or attendance in courts of judges and court personnel, lawyers and court users, who are more than 59 years old or who are at risk or most vulnerable, such as those who have medical conditions or are suffering from illnesses or sickly.

Urgent matters that may be acted upon by the courts during ECQ and GCQ

In an earlier circular[4], The Supreme Court directed courts to act only on urgent matters; and below is a non exhaustive list of such urgent matters:[5]

· Petitions, motions and pleadings in relation to bail;
· Petitions, motions and pleadings in relation to habeas corpus;
· Promulgation of judgments of acquittals;
· Reliefs for those who may be arrested during the ECQ period; and
· Other related actions filed in relation to measures imposed at the local or national levels to address the declared health emergency

Suspension of hearings

Thus, except urgent matters, all hearings in the ECQ and GCQ areas remain suspended until 15 May 2020.[6] However, in areas under GCQ, the judges may, in their discretion, set for hearing other urgent matters or concerns to expedite proceedings or cases before their respective courts.[7]

Extended period for court actions not deemed urgent matters

The periods for court actions with prescribed periods in both ECQ and GCQ areas shall be extended for thirty (30) calendar days counted from 16 May 2020, except court actions on urgent matters.[8]

Electronic submissions

With respect to the filing of petitions and appeals, complaints, motions, pleadings and other court submissions due up to 15 May 2020, the Supreme Court granted an extension of 30 calendar days from 16 May 2020.[9] Nevertheless, parties may still make submissions within the reglementary period on or before 15 May 2020 through electronic means, if available.[10]

While the courts shall remain physically closed to all court users, the courts shall continue to operate from 9:00am to 3:00pm, Monday to Friday until 15 May 2020.[11] Electronic communications must be transmitted by court users from 8:30am to 2:00pm.[12]

Functioning courts and technology

It is apparent that the COVID-19 pandemic has forced the courts to revisit traditional litigation and trial processes. Clearly, the decision to hasten modernization is not only on account of convenience. The need to function and provide services during times of public health emergencies consistent with the courts’ constitutional mandate to settle disputes and controversies demanded that the courts fast-track the shift towards becoming more technologically capable.

While the issuances above generally provide that they will be observed only during this public health crisis, there is no assurance that even after the GCQ is lifted the courts will have the real option to shift back to the traditional way of doing things without exposing judges, court staff, practitioners and parties to health risks. The processes outlined above may very well be the “new normal” in practice, or at the very least a preview of what’s to come. As always, keeping abreast of new issuances and regulations is key in ensuring that parties are protected and remedies are timely availed of in legal proceedings.

[1] Administrative Circular No. 32-2020 dated 20 March 2020; Administrative Circular No. 34-2020 dated 8 April 2020; Administrative Circular No. 37-2020.

[2] Administrative Circular No. 33-2020 dated 31 March 2020.

[3] Administrative Circular No. 37-2020 dated 27 April 2020; Administrative Circular No. 38-2020 dated 30 April 2020.

[4] Administrative Circular No. 32 -2020 dated 20 March 2020.

[5] 5, Administrative Circular No. 31-2020 dated 16 March 2020.

[6] 6, Administrative Circular No. 35-2020 dated 27 April 2020; 4, Administrative Circular No. 36-2020 dated 27 April 2020.

[7] 4, Administrative Circular No. 36-2020 dated 27 April 2020.

[8] 8, Administrative Circular No. 35-2020 dated 27 April 2020; 8, Administrative Circular No. 36-2020 dated 27 April 2020.

[9] 7, Administrative Circular No. 35-2020 dated 27 April 2020; 6, Administrative Circular No. 36-2020 dated 27 April 2020.

[10] Ibid.

[11] 2, Administrative Circular No. 35-2020 dated 27 April 2020.

[12] Ibid.

5 May

FAQs on DTI and DOLE Interim Guidelines on Workplace Prevention and Control of COVID-19

Atty. Reynaldo T. Dizon

Legal Updates

Author Atty. Reynaldo T. Dizon

On 30 April 2020, the Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) issued an Interim Guidelines on Workplace Prevention and Control of COVID-19 (“Interim Guidelines “) to provide policy directions on the operations of private institutions during the Enhanced Community Quarantine (ECQ) and General Community Quarantine (GCQ).

Below are the Frequently Asked Questions (FAQs) regarding the Interim Guidelines.

1. What kind of institutions are covered by the Interim Guidelines issued by the DTI & DOLE?

All private institutions that are allowed to operate during the ECQ and GCQ are covered by the Interim Guidelines. Thus, workplaces, employers and employees in the private sector must comply with the said guidelines.

2. What are the objectives that the Interim Guidelines aim to achieve?

To increase physical and mental resilience of the employees working for the private sector;
To reduce the transmission of COVID-19;
To minimize the contact rate between employers and employees; and
To reduce the risk of infection from COVID-19.

3. What must the employers do “to increase the physical and mental resilience of their employees?”

Employers must emphasize to its employees the need to stay healthy by eating nutritious and well-cooked food, by drinking plenty of fluids, by taking adequate rest/sleep, and by exercising regularly. Employers are also enjoined to provide free medicines and vitamins to its employees, and refer employees who have mental health concerns to doctors or professionals.

4. What must the employers and employees do “to reduce the transmission of COVID-19” in the workplace?

The duty of the employers and employees are two-fold.

First, prior to entrance in the building or workplace:

a. All employers and employees shall wear face mask at all times, and removal thereof is only allowed during drinking or eating;

b. All employers and employees shall have their temperature checked and recorded in the health symptoms questionnaire which must be submitted to the guard or the safety officer;

c. Employers or building owners must designate an isolation area to hold employees whose temperature are over 37.5 Celsius and/or whose response to the questionnaire needs further evaluation by the clinic staff;

d. Employers must also provide spray alcohol, sanitizers, disinfectant foot baths (if applicable), at the building entrance;

e. Employers must also disinfect equipment or vehicle entering the hub operational area; and

f. Employers must instill physical distancing if there is a long queue outside the building or workplace.

Second, inside the building or workplace:

a. Employers must disinfect every two hours all work areas and frequently handled objects such as door knobs and handles;

b. Employers must ensure that all washrooms and toilets have sufficient clean water and soap;

Sanitizers must be made available in areas where employees pass;

c. Employees shall always practice physical distancing at the minimum of one (1) meter radius space (side, back, and front) between employees; and

d. Eating at communal areas must be discouraged (it is best to eat in individual work area but all food waste should be disposed properly).

5. How can the employers and employees “minimize their contact rate” in the workplace?

a. Employers must implement an alternative work arrangement such as work from home (if feasible), working-hour shifts, and rotation basis;

b. Videoconferencing must be utilized, and meetings needing physical presence shall be kept to a minimum number of participants and for a short duration;

c. Use of stairs shall be encouraged to maintain physical distancing;

d. Elevator use must limit the number of persons in order to observe the 1-meter physical distancing; and

e. Online system shall be highly encouraged to be utilized by clients.

6. How can the employers and employees “reduce risk of infection from COVID-19” in the workplace?

In the event that the employee is suspected as having COVID-19:

a. He/she must immediately proceed to the designated isolation area and must never remove his/her mask;

b. The clinic personnel attending the affected employee must wear appropriate PPEs and if needed, should assist in the transport of the employee to the hospital;

c. Employers must decontaminate the work area and work can only resume after 24 hours from the time of decontamination; and

d. Employees present in the area with a positive COVID-19 employee shall go on a 14-day home quarantine with specific instructions from the clinic staff on monitoring of symptoms and possible next steps.

7. What are the additional duties of employers in addition to the above-mentioned duties and responsibilities?

Employers shall provide the necessary policies for the prevention and control of COVID-19 in consultation with employees, designate a safety officer to monitor COVID-19 prevention and control measures, enhance health insurance provision for employees, provide shuttle services and/or decent accommodation on near-site location to lessen travel and people movement (if feasible), and put-up a COVID-19 hotline for employees to report if they are symptomatic.

8. What are the additional duties of employees in addition to the above-mentioned duties and responsibilities?

Employees must comply with all the workplace measures and policies in place for the prevention and control of COVID-19, observe proper respiratory etiquette, cough or sneeze in a tissue, and disinfect hands regularly and immediately after coughing or sneezing.

9. If an employer decides to test its employees for COVID-19, who will shoulder the costs?

The costs and procurement of testing kits shall be the responsibility of the employer.

10. Is there any protocol that must be followed if the employer tests its employees for COVID-19?

Yes. The employer must follow its company policy om COVID-19 testing which shall be formulated and agreed upon by the employer and the employees in conformity with the Department of Health protocols.

11. What if the employer has “most at risk” and “vulnerable group” of employees such as those who are above 60 years old and with pre-existing illness, what should it do?

Employers are highly encouraged to allow these employees to work from home.

30 Apr

FOREIGN NATIONALS AT WORK IN THE PHILIPPINES – WORK PERMIT AND WORK VISA PROCESSING DURING THE ECQ

Atty. Phil Ivan A. Chan, Atty. Gino Paulo O. Uy

Legal Updates

Author Atty. Phil Ivan A. Chan. Atty. Gino Paulo O. Uy

With the Philippine government’s imposition of the Enhanced Community Quarantine (ECQ) in Luzon initially up to April 30, 2020, and as extended to certain parts of the Philippines up to May 15, 2020, business operations and transactions by and among public and private entities have been significantly affected. Various advisories have been issued to address the effects that the ECQ may have particularly on applications for the issuance and renewal of work permits and visas by foreigners assigned in the country.

Work Permit Applications

As of the date of this article, the Department of Labor and Employment (DOLE)[1] has suspended until further notice processing of original or renewal Alien Employment Permit (AEP) applications.

In consideration of the ECQ, no penalty or administrative fine shall be imposed on AEP’s that expired or will expire during the DOLE’s suspension period with no renewal application being filed. Upon lifting of the suspension, AEP applications for permits that expired during the suspension period shall still be considered as renewal applications.

Employment contracts that became effective during the suspension period and are not filed within the usual 15 days grace period to file an AEP application will likewise not be subject penalty by the DOLE.

Work Visa Applications

The Department of Justice (DOJ)[2] has mandated that the Legal Staff (Office of the Chief State Counsel) shall only process visa applications filed under their department (whether original issuance or extension) received as of 13 March 2020. The DOJ suspended the receipt of visa applications under their supervision beginning 16 March 2020.

Applicants with no urgent need to process their visa have been requested to defer the filing of their application until such time that the ECQ is lifted. For applicants whose visa will expire during the ECQ are advised to file their application immediately after the lifting of the ECQ. Holders of visas, other than those issued by the DOJ, which will expire during the ECQ and will be applying for conversion to a DOJ-issued visa are, in the meantime, advised to have their visas extended before the Bureau of Immigration (BI).

Also, the BI[3], together with the Department of Foreign Affairs (DFA)[4], has temporarily suspended issuance of visas to foreigners effective 22 March 2020 until further notice. Foreigners shall also not be able to enter the Philippines during the ECQ period, subject to certain exceptions. All visas previously issued to incoming travelers have been temporarily suspended effective 12:00 am of 22 March 2020 and no new visas will be issued, EXCEPT to (a) Foreign spouse and children of Filipino nationals travelling with the Filipino national AND that previously enjoyed visa upon arrival privileges; and (b) Foreign Government and international Organization officials accredited to the Philippines. This issuances, however, does not affect the visa status of foreign nationals already in the country and they may continue to stay in the country during the ECQ.

Moving Forward

With all transactions at the BI offices in Luzon temporarily suspended during the ECQ period, the BI Commissioner has stated that all foreigners whose visas will expire during the ECQ shall be allowed to file their visa extension applications without penalty, within thirty (30) days from the lifting of the ECQ.

Further, with the recent policies in place for the duration of the ECQ, Philippine employers may do well to reassess the existing and future assignments of foreign employees that they’ve hired or are looking to hire. Postponement of renewal or original applications must be seriously considered until the ECQ is lifted and the relevant government agencies have come out with amended issuances on the matter to preclude any issues that may arise.

[1] Advisory No. 20-04 dated 23 March 2020 regarding the Suspension of the Processing of Issuance and Renewal of Alien Employment Permit

[2] Department Circular No. 11 dated 13 March 2020 regarding the Suspension of Receipt of Application for Special Non-Immigrant Visas under Section 47(a)(2) of the Philippine Immigration Act of 1940, as amended, and Applications for Recognition of Refugee Status and Statelessness

[3] Memorandum dated March 19, 2002 regarding Temporary Travel Ban for Arriving Foreigners

[4] Foreign Service Circular No. 29-2020 dated March 19, 2020 regarding Temporary Suspension of Visa Issuance and Visa-free Privileges

28 Apr

Tax Exemption on Donations Helps COVID-19 Efforts

Atty. Mary Elizabeth M. Belmonte, Atty.Harlem P. Ma-at

Legal Updates

Author Atty. Mary Elizabeth M. Belmonte, Atty.Harlem P. Ma-at

The spread of COVID-19 has sparked fear among Filipinos and has forced the Philippine government to implement the Enhanced Community Quarantine (ECQ) over the entire Luzon and other parts of the country. Yet, this has not dampen the bayanihan spirit of Filipinos. Businessmen and ordinary citizens have stepped up and have donated, and, in fact, are still donating, goods and services to frontliners and fellow citizens to help one another survive this pandemic.

Acknowledging the significant increase in donations, the Secretary of Finance issued Revenue Regulations (RR) No. 09-2020 on 06 April 2020, exempting donations or gifts made for the sole and exclusive purpose of combatting COVID-19 during the period of state of national emergency under Republic Act No. 11469 (Bayanihan to Heal As One Act) from donor’s tax. The said RR also allows the donor/taxpayer to deduct the amount of donations from its gross income subject to income tax.

The tax exemption and deductions granted were based on Sections 4(z) and 4(ee) of Republic Act No. 11469 which state that the President is authorized to adopt the following measures to respond to the crisis brought about by the COVID-19 pandemic:

“(z) xxx the grant of any benefit, in order to ease the burden on individuals under the Community Quarantine;

(ee) Undertake such other measures as maybe reasonable and necessary to enable the President to carry out the declared national policy subject to the Bill of Rights and other constitutional guarantees.”

To guide those who will avail of the tax exemption, below are frequently asked questions regarding the RR No. 09-2020.

What kinds of donations are eligible for donor’s tax exemption?

(a) Cash donations;

(b) Donations of all critical or needed healthcare equipment or supplies;

(d) Use of property, whether real or personal (shuttle service, use of lots or buildings).

What do you mean by critical or needed healthcare equipment or supplies?

This phrase includes the following:

(i) Personal Protective Equipment (PPE) which refers to gloves, gowns, masks, goggles, face shields, surgical equipment and supplies, laboratory equipment, and its reagents, medical equipment and devices, support and maintenance for laboratory and medical equipment, surgical equipment and supplies;

(ii) Medical supplies, tools, and consumables such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, sodium hydrochloride, cleaning materials, povidone iodine, common medicines (e.g., paracetamol tablets, mefenamic acid, vitamins tablet and suspension, hyoscine tablet and suspension, oral rehydration solution, and cetirizine tablet and suspension);

(iii) Testing kits; and

(iv) Other supplies as may be determined by the Department of Health and other relevant government agencies.

Can I deduct the full amount of donations I made against my gross income?

Yes. You may deduct the full amount of donations, enumerated above, against your gross income provided that the donations were made for the sole and exclusive purpose of combatting COVID-19 during the period of state of national emergency and the same were given to any the following donees:

(i) The National Government or any entity created by its agencies (including public hospitals) which is not conducted for profit, or to any political subdivision of the said Government, including fully owned government corporations; or

(ii) Accredited non-stock, non-profit educational and/or charitable religious cultural or social welfare corporation, institution, foundation, non-government organization, trust or philanthropic organization and/or research institution or organization; or

(iii) Private hospitals and/or non-stock non-profit educational and/or charitable religious cultural or social welfare corporation, institution, foundation, non-government organization (even if non-accredited), trust or philanthropic organization and/or research institution or organization; or

(iv) Local private organizations, civic organizations, and/or international organizations or institutions provided that they shall (1) actually, directly, and exclusively distribute and/or transfer said donations/gifts to, and/or (2) partner as conduit/logistical machinery with, the accredited NGOs and/or national government or any entity created by any of its agencies not conducted for profit, or to any political subdivision of the said Government.

To avail of the exemption and deduction, do I still have to submit a Notice of Donation to the Bureau of Internal Revenue (BIR)?

No. The submission of Notice of Donation to the BIR is dispensed with for donations made in relation to RR No. 09-2020.

Are there other supporting documents I must submit in order to avail of the exemption and deduction?

Yes. Attached to this artile is a summary of documentary requirements for each donee-recipient.

Will donations made in kind be subject to VAT?

No. Donations made in kind, particularly (a) donations of all critical or needed healthcare equipment or supplies and (b) donations of relief goods, will not be treated as transactions deemed sale subject to VAT.

Will I still be able to claim any input VAT on donations made in kind?

Yes. Any input vat attributable to the purchase of goods donated in kind shall be creditable against any output VAT of the donor.

Will donations made after the ECQ be still eligible for the exemption and deduction under RR No. 09-2020?

Yes. As long as it is made during the three-month effectivity of Republic Act No. 11469, or until 24 June 2020, unless it is extended or withdrawn by Congress or ended by Presidential Proclamation.

With RR No. 09-2020 in place, we hope that more Filipinos will be encouraged to make donations in whatever way they can.

Link: Revenue Regulations (RR) No. 09-2020 – List of Supporting Documents

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