BIR Ruling

November 26, 1975 Sy Tiongsa Memorial Foundation, Inc. 22nd-8th Sts. Nazareth Cagayan de Oro City Attention: Mr . Edgardo K . Sytiongsa President Gentlemen : This refers to your application for qualification as a donee or legatee entitled to the benefits of Presidential Decree No. 507. It appears that the Sy Tiongsa Memorial Foundation, Inc. is a non-stock, non-profit organization duly registered with the Securities and Exchange Commission; and that the organization is considered a social welfare and cultural organization as defined in Section 3(a) and (b) 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. cdta In view thereof, and pursuant to Presidential Decree No. 507, all gifts, bequests, donations and/or contributions to that organization 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 organization for administration purposes. In this connection you are further advised that in order that organization may maintain its status as a qualified recipient of tax free donation, it should file within three months from the end of its fiscal or calendar year period an annual information, 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 projects, 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, bequests and donations received during the year was used for administration purposes; cdti (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, (SGD.) EFREN I. PLANA Actg . Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."