Section 18Sec./Art. 18

Exemption from Tax. - All grants, bequests, endowments, gifts, donations and contributions made to and used actually, directly, and exclusively for educational purposes by the PSHS System shall be exempt from donor's tax and shall be considered as allowable deductions from gross income for purposes of computing the taxable income of the donor, pursuant to the provisions of Republic Act No. 8424 or the "National Internal Revenue Code of 1997", as amended.

Upon certification by the DOST, the importation of scientific and research equipment for educational purposes made by the PSHS System shall be exempt from the payment of taxes and customs duties in accordance with Republic Act No. 10863 or the "Customs Modernization and Tariff Act (CMTA)". Any taxes and duties on importations not covered by the said exemption shall be chargeable against the Tax Expenditure Fund under the General Appropriations Act (GAA).