BIR Ruling

November 19, 1976 Tax Exemption for Non-Profit Organizations This has reference to your letter of October 10, 1976, requesting for exemption from income tax and relief from the duty of filing corporate income tax return in accordance with the provisions of Section 27(h) of the National Internal Revenue Code. Your previous request for tax exemption benefits as a social welfare organization under Presidential Decree No. 507 was denied because, upon investigation, it was disclosed that you are not a social welfare organization but actually a mere social club. It was also disclosed that you are a non-stock and non-profit organization, organized and operated primarily and exclusively for pleasure, recreation and athletic activities, as well as such other non-profitable purposes, and no part of your income insures to the benefit of any private stockholder or individual. Considering that you are a non-stock and non-profit club, organized and operated primarily and exclusively for pleasure, recreation and athletic activities and that no part of your income inures to the benefit of any private stockholder or individual, you are hereby considered exempt from the payment of income tax and relieved from the duty of filing the annual corporate income tax returns in accordance with Section 27(h) of the Tax Code. Likewise, you are required to file with this Office on or before April 15 of each year an annual information return under oath, stating your gross income and expenses incurred during the preceding stantial change in your By-Laws, Articles of Incorporation, manner of operation and activities, as well as source and disposition of income, in accordance with Revenue Regulations No. 7-64, which amended Section 24 of Revenue Regulations No. 2. cdtech