BIR Ruling

June 30, 1977 Religious Corporations Created under Sec . 27 ( g ) of the Tax Code . 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 Inter-Varsity Christian Fellowship of the Philippines, Inc., is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission; that the purpose for which the corporation is formed is to establish autonomous chapters or fellowships of Christian students in high schools, schools of nursing, colleges and universities in the Philippines, to stimulate personal faith in the love for the Lord Jesus Christ among individual students and generally to spread the truth of Christianity in academic circles, and to establish autonomous fellowships of Christian graduates in different places in the Philippines; that the organization shall be financed by membership fees, donations from individuals, churches, groups other than churches and sale of literature: and that no part of its net income inures or may accrue to the benefit of any member or individual. In view thereof, this Office is of the opinion and so holds that the Inter-Varsity Christian Fellowship of the Philippines, Inc., falls within the purview of an organization organized for purely religious purposes as contemplated by Section 27(e) of the Tax Code. Accordingly, it is exempt from the payment of income tax. It is however, subject to income tax on income derived from any of its properties, real or personal or any activity conducted for profit, regardless of the disposition made of such income. Moreover, 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 year and a certificate showing that there has not be any change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. aisadc