BIR Ruling

May 30, 1969 Rev. Father James Cawley, S.J. Chairman, Board of Trustees La Purisima High School, Inc. Wac, Province of Lanao del Sur Reverend Father : This refers to your request for exemption of La Purisima High School, Inc. from the payment of income tax and filing of the corresponding income tax return under Section 27(e) of the National Internal Revenue Code. It appears that the La Purisima High School, Inc. (hereinafter referred to as the School) is a non-stock, non-profit and religious-educational corporation duly incorporated under the laws of the Philippines; that the purpose for which the School is formed is to give a sound, complete and catholic education to children and youth in the Philippines and to promote their intellectual and moral development; that the corporate powers of the School shall be exercised, the business conducted, and its property controlled by a Board of Trustees which shall consist of five (5) members who shall be members of the corporation; that the school derives no income from its properties or from any activity conducted for profit; that the sources of its income are from matriculation, tuition, laboratory, library, athletic, medical and dental fees, book rentals and donations; that if the School derives any income, from any source whatsoever, it is merely incidental to its activities as a non-stock, non-profit and religious-educational corporation; and that no part of its income, if any, inures or accrues to the benefit of any private individual or shareholder. Based on the foregoing facts, the La Purisima High School, Inc. is an exempt organization within the purview of Section 27(e) of the National Internal Revenue Code. Accordingly, it is exempt from the payment of income tax. The School is however, subject to income tax on income derived from any of its properties, real or personal, or from any activities conducted for profit, regardless of the disposition made of such income. If it has not earned any taxable income, it is likewise exempt from the filing of income tax returns. It may also be stated in this connection, that while the La Purisima High School, Inc. is exempt from the filing of the annual income tax returns, and the registration of its books of accounts and other records, it is nevertheless required to file on or before April 15 of each year, a balance sheet, profit and loss statement and annual information return under oath, stating its gross income and expenses 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. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue