BIR Ruling

September 15, 1977 Messrs. Siguion Reyna, Montecillo & Ongsiako Attorneys-at-Law A. Soriano Building Ayala Avenue Makati Metro Manila Attention: Atty . Carlos G . Platon For the Firm Gentlemen : This refers to your request for a certification on behalf of your client's the MAHINTANA FOUNDATION, INC., c/o 5th Floor, A. Soriano Building, Ayala Avenue, Makati, Metro Manila, qualification as a donee or legatee entitled to the benefits provided for in Presidential Decree No. 507. The documentary evidence submitted show that the Mahintana Foundation, Inc., is a non-stock, non-profit association duly registered with the Securities & Exchange Commission, and that the organization is a cultural and a charitable organization as defined in Section 3(b) and (c) of Revenue Regulations No. 8-74 implementing Presidential Decree No. 507, no part of the net income of which inures to the benefit of any of its members. As the Foundation is a cultural and a charitable organization pursuant to Presidential Decree No. 507, all gifts, bequest, donations, and/or contributions to that Foundation are exempt from the donor's and estate taxes and shall be deductible in full in computing the taxable net income of the donor subject to the condition that not more than 30% of the donation or bequest shall be used by that Foundation for administration purposes. However, in order that Foundation may maintain its status as a qualified recipient of tax free donation, it should file within three (3) months from the end of its fiscal or calendar year period an annual information return with the Chief, Legal Branch of the Regional Office having jurisdiction over the principal address of the organization to which shall be attached the following: (a) A list of the donations and bequests received during the year, which should show the name and address of the donors or testators, the amount or market value of each donation or bequest and the disposition thereof. The list should be certified to by the president or treasurer of the organization; (b) A list of the activities and/or projects undertaken by the organization and the cost of each undertaking or project, which should also be certified to by the president or treasurer of the organization; (c) A certification by the president or treasurer of the organization that not more than thirty per centum (30%) of the total gifts, bequest and donations received during the year was used for administrative purposes; (d) A certification by the president or treasurer of the organization that no part of its net income inures to the benefit of any private stockholder or individual. (Sec. 9, Revenue Regulations No. 8-74 dated September 24, 1974). Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8