BIR Ruling

October 14, 1971 Action Line c/o The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the letter dated July 7, 1971, of Mr. Jeremias Andrada of 136-BK 4th Kamuning, Quezon City, requesting information on the following: cdta (1) As to whether or not the distribution of religious pamphlets and articles to their followers are exempt from the fixed tax and postage stamps; and (2) As to whether or not these religious institutions are likewise exempted from the payment of licenses and building permit fees for the construction of buildings intended of religious purposes. In reply, I have the honor to inform you that distribution of religious pamphlets and articles either for sale or with a little profit to its faithful followers for the dissemination of their religious ideas are not subject to the fixed tax on business because to do so would be violative of the constitutional provision which guarantees the freedom of religious worship. (American Bible Society v. City of Manila, 54 O.G. 5187) With respect to the query on the exemption from postage stamp, of such articles, you are advised to pose said query to the Bureau of Post. And as regards the question of whether religious institutions which intend to construct a building for religious worship or purposes are exempt from payment of licenses and building permit fees, it is suggested that the inquiry be directed to the City or Municipal government concerned. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue