BIR Ruling

December 17, 1969 Rev. Fr. Patrick Campion Holy Child's Academy Pagadian, Zamboanga del Sur Reverend Father : This refers to your letter dated February 8, 1967 requesting exemption of the Holy Child's Academy, Pagadian, Zamboanga del Sur, from the payment of income tax and the filing of the corresponding income tax return under Section 27(e) of the Tax Code. It appears that the Holy Child's Academy (hereinafter referred to as the School), was established and organized on March 13, 1961 as a non-stock corporation exclusively for religious and educational purposes, i.e., "to establish, maintain, and operate an institution of learning for men and women of any nationality, whose aims shall be the promotion and development of personal discipline, civic consciousness and vocational efficiency by providing therein instruction in academic and vocational courses as conditions may demand from time to time." The School is financed and maintained by means of tuition fees, matriculation fees and other fees which it may collect from the students and an initial amount of P2,000.00; and that no part of its net income inures to the benefit of any individual. In view of the foregoing, this Office is of the opinion and so holds that the School is exempt from the payment of income tax under Section 27(e) of the Tax Code. The School is, however, subject to income tax on income derived from any of its properties, real or personal, or from any activity conducted for profit, regardless of the disposition made of such income. If it has not earned any taxable income, it is also exempt from the filing of income tax returns. Moreover, the School is required to file on or before April 15 of each year, a profit and loss statement and balance sheet with the annual information return under oath, stating its gross income and expenses incurred during the preceding year and certificate showing that there has not been any substantial change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income pursuant to Revenue Regulations No. 7-64 dated November 4, 1964. cdll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue