BIR Ruling

August 31, 1973 Father Alfredo Sta. Ana President Mandaluyong Training Center Fatima Convent, Highway Hills Mandaluyong, Rizal Reverend Father : This refers to your letter dated March 15, 1973 requesting exemption of the Mandaluyong Training Center, Fatima Convent, Highway Hills, Mandaluyong, Rizal from the payment of income tax and filing of the corresponding income tax return under Section 27 (e) of the Tax Code. It is represented that the Mandaluyong Training Center (hereinafter referred to as the Corporation) is a non-stock and non-profit corporation duly registered with the Securities and Exchange Commission; that the purposes for which the Corporation in formed are: cdt 1. To endeavor to bring about solutions to the prevailing unemployment problem, particularly that existing in Mandaluyong, Rizal; 2. To assist the unemployed find jobs and to render assistance to the employers to avail themselves of qualified workers; 3. To conduct counselling, testing and the like on applicants as well as students in order to guide them on the work or vocation suited to their capabilities or aptitudes; 4. To assist in the training of unskilled and semi-skilled workers in cooperation with educational institutions, civic groups, church organizations, government entities, etc. 5. To undertake finance and assist pure and fundamental research, development work, economic evaluation on the economic conditions and manpower and labor market in the fields of agriculture and industry; 6. To undertake, establish finance, and render assistance to pilot projects in farming, small scale industries and the like design to help the unemployed and the under-employed; 7. To finance and establish scholarships grants to worthy but indigent students; 8. To conduct seminar, service training for the technical advancement and improvement of the laborers and workers; 9. To acquire or accept by way of gift, donation, device, bequest, endowment, purchase, lease or otherwise cash, property, whether real and personal or mixed without limitations as to amount or value except such limitation, if any as may be imposed by law to attain the objectives of the foundation; 10. To use, manage, operate, lease, mortgage, sell, or otherwise exploit, develop or dispose of the said cash, properties, of whatever description and to devote the income, profits and avail therefrom for the purpose of the foundation; and 11. To invest or exchange any portion of its donation, revenues, earnings, or capital in the purchase or acquisition of shares of stock or bonds of other corporations, and to these ends, to deal in any manner whatsoever with its holdings, properties, and investments as the Foundation may need from time to time to carry out its purposes and objectives; that the corporation is maintained by contributions, donations and endowments coming from members and other civic-spirited citizens; and that no part of its net income inures to the benefits of any private individual. Based on the foregoing representations, this Office is of the opinion and so holds that the Mandaluyong Training Center, Inc. falls within the purview of a corporation or association organized and operated exclusively for educational and charitable purposes as contemplated under 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 from any activity conducted for profit, regardless of the disposition made of such income. It has not earned any taxable income, it is also exempt from the filing of income tax returns. However, the corporation 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 substantial change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. This Office may however, revise or modify this ruling if upon investigation, it will appear that the facts are different from those upon which the ruling is predicated. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."