BIR Ruling

February 20, 1967 Mr. Zoilo V. de la Cruz, Jr. National President Congress of Independent Organization (CIO) Manuela Bldg., San Juan Street Bacolod City S i r : This refers to your letter dated December 29, 1966 requesting in effect that the Congress of Independent Organization, a legitimate labor organization be authorized to receive tax free donation of second hand office equipments for the use of the same from a similar organization in the United States. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. Republic Act No. 1916, as implemented by Department of Finance Order No. 18, exempts donation imported into the Philippines from taxes and duties if consigned to a duly incorporated or established international civic organization, religious or charitable society or institution for civic, religious or charitable purposes, upon proof to the Commissioner of Customs and/or Commissioner of Internal Revenue that such donations in any form and articles so imported are donations for its use or for free distribution and not for barter, sale or hire. As such, it is clear that labor organization is not one of the organizations intended by said law to be exempted from taxes and duties if it is the recipient of a donation of any kind coming from other countries. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue