BIR Ruling

June 14, 1977 Kinabukasan ng Kabataan Foundation, Inc. 9485 Elizabeth Street Airport Village, Paraaque, Rizal Attention: Atty . Manuel N . Millan General Manager Gentlemen : This refers to your request for exemption from the payment of income tax and the filing of the corresponding income tax return under Section 27(e) of the Tax Code. Investigation conducted by this Office disclosed that the Kinabukasan ng Kabataan Foundation, Inc., is a non-stock, non-profit organization duly registered with the Securities and Exchange Commission; that the purpose for which the corporation is formed is to provide an institutional lawful medium that will be authorized to engage in any or all of the following activities: 1. To establish homes and centers for under-privileged boys and girls in the Philippines, by itself or in conjunction with or in cooperation with the Boys Town Complex established by the City of Manila; 2. To finance scholarship and special grants to the under-privileged youth; 3. To promote, support, finance vocational schools, as well as specific projects in industry, agriculture and other activities which would promote benefits for the underprivileged youth; 4. To promote, support, and finance community development projects such as cooperatives, credit unions, self-help projects and the like; 5. To undertake, promote, or assist basic research applied research, developmental work and/or economic evaluation and/or granting of scholarships for technological manpower training, including the establishment of scholarship grants in the field of industry, agriculture, health sciences, food and nutrition and/or social sciences and the humanities 6. To establish and/or provide incentives including financial and technological support, for the establishment of scientific and technical centers, social order institutes, rural social leadership programs and urban development research activities 7. To encourage and support researches and studies on, and the teaching of, the social sciences and humanities, particularly developmental economics, sociology, geo-politics and history; that the organization shall be financed by such amounts as may from time to time, be received from contributions, grants or endowments from private or governmental sources, from such cash or property as may from time to time be received or acquired by contract or deed and from its income derived by managing the airport porterage services at the Manila International and Domestic Airport, upon representation made by the First Lady to the management of the Civil Aeronautics Administration for the Manila Boys Town; and that no part of its net income shall inure or accrue to any member or individual. aisadc In view thereof, this office is of the opinion and so holds That the Kinabukasan ng Kabataan Foundation, Inc., is a civic league or organization not organized for profit but operated exclusively for the promotion of social welfare as contemplated under Section 27(g) of the Tax Code. Accordingly, it is exempt from the payment of income tax and the filing of the corresponding income tax returns. However, it 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 a certificate showing that there has not been any change in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources, and disposition of income. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8