BIR Ruling

March 16, 1977 Organization organized for religious and cultural purpose, exemption from income tax 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 of the Tax Code. Investigation conducted by this Office disclosed that the Paco Hong Giam Taoist Temple, Inc., 1341 Perez Street, Paco, Manila, is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission; that the primary purpose for which the Corporation is formed is to foster and promote the principles of "taoism" as an ethnical guide in life and to maintain harmonious relations among its members, and initiate, promote, and sponsor cultural, charitable, educational, recreational, or other eleemosynary projects and activities geared towards the development of physical, intellectual, moral and cultural refinement; that the said Corporation shall be maintained by voluntary contributions, donations, bequests and endowments from the members only; and that no part of its net income inurers or may accrue to the benefit of any member or individual. In view thereof, this Office is of the opinion as it hereby holds that the Paco Hong Giam Taoist Temple, Inc., falls within the purview of an organization operated for religious and cultural 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. If it has not earned any taxable income, it is also exempt from the filing of the income tax returns. 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 preceding year and a certificate showing that there has not been any change in its By-Laws, Articles of Incorporation, manner of operation and actives as well as sources and disposition of income. cd