BIR Ruling

April 13, 1972 The Fund for Assistance to Private Education Rm. 402 Consolidated Financing Corporation Bldg. 313 Buendia Avenue Extension Makati, Rizal Attention: Mr . Onofre D . Corpuz President Gentlemen : This refers to your letter dated March 28, 1972 requesting exemption from the payment of advance sales tax on the importation of reference books for forty-seven grantees in connection with your College Library Assistance Scheme. It is represented that the Fund for Assistance to Private Education is a non-profit organization created by the President of the Philippines under Executive Order No. 156, dated November 5, 1968; that the FAPE is aimed to the improvement of private education in the Philippines, concentrating the bulk of assistance programs to the college and graduate levels; and that the above-mentioned books will be donated to the schools and not for commercial purposes. In reply, I have the honor to inform you that if as represented the imported reference books will be donated for use by the several grantees (schools) and not for commercial purposes, said importation is only subject to the 7% compensating tax prescribed in Section 190, in relation to Section 186, both of the Tax Code. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue