Section 5Sec./Art. 5

Privileges. - To allow it to fully realize its mandate under the Geneva Conventions, the Statutes of the International Red Cross and Red Crescent Movement and this Act, the Philippine Red Cross shall:

(a)Enter into agreements with public authorities, and accept provisions for the cost of any service or activity which may be entrusted to it, within the scope of its object and functions, pursuant to such agreements;

(b)Own and hold real and personal properties and accept bequests, donations and contributions of property of all classes;

(c)Be exempt from payment of all direct and indirect taxes, all provisions of law to the contrary notwithstanding, including value-added tax (VAT), fees and other charges of all kinds on all income from its operations, including the use, lease or sale of its real property, and provision of services. The Philippine Red Cross shall also be exempt from direct and indirect taxes, including VAT, duties, fees and other charges on importations and purchases for its exclusive use.

Likewise, all donations, legacies and gifts made to the Philippine Red Cross to support its purposes and objectives shall be exempt from the donor's tax and shall be deductible from the gross income of the donor for income tax purposes or from the computation of the donor-decedent's net estate as a transfer for public use for estate tax purposes.

Finally, the Philippine Red Cross shall be exempt from the payment of real property taxes on all real properties owned by it; and

(d)Be allotted by the Philippine Charity Sweepstakes Office at least one (1) lottery draw yearly for the support of its disaster relief operations in addition to its existing lottery draws for the Blood Program.