Tax Alert No. 6 [Revenue Memorandum Circular (RMC) No. 10-2026 dated 4 February 2026]

Clarifying the Tax Treatment, Documentation Requirements, and Filing of Return and Payment of Donor's Tax for Donations Consisting Purely of Cash

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 10-2026, providing guidance on the tax treatment of donations purely of cash. The Circular clarifies the applicable documentation requirements, as well as the donor’s obligation to file the prescribed donor’s tax return and pay the corresponding donor’s tax if applicable.

The key provisions of the RMC are as follows:

       1. Filing of Donor’s Tax Return

Donor’s tax returns for donations consisting of purely cash donations are required to be filed electronically through any BIR-authorized electronic platform (i.e., eBIRForms, eFPS, authorized ATSP solutions);

       2. Payment of Donor’s Tax

Payment of donor’s tax, if applicable, may be made manually through Authorized Agent Banks (AAB) or electronically through the BIR’s available ePayment channels;

      3. Submission of Documentary Requirements

The documentary requirements enumerated in the RMC should be submitted to the appropriate Revenue District Office (RDO) or Large Taxpayers Division (LTD) as applicable, within thirty (30) days from the date of donation; and

      4. No eCAR Requirement for Cash Donation

An eCAR is not required for donations consisting purely of cash, as these do not involve the transfer of registrable property subject to registration with any government registry.

The RMC further provides that cash donations made to accredited donee institutions may be claimed as deductions from gross income, subject to compliance with the documentary requirements prescribed under existing tax laws and regulations.

You may access the full version of the RMC through the BIR website. 

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link