BIR Ruling

February 7, 1977 Tayum Organization For Progress (TOP), Inc. 61 Chicago St., Cubao Quezon City Attention: Miss Rosario C . Brillantes President Gentlemen : 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(g) of the Tax Code. Investigation conducted by this Office disclosed that the Tayum Organization For Progress, Inc., is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission; that the purpose for which the corporation is formed is primarily to work for and contribute to the development and progress of the Municipality of Tayum, Abra, by engaging in civic enterprises for the educational, cultural, health and economic uplift of the townspeople, by: 1. maintaining a library and museum in Tayum; 2. seeking and/or organizing scholarships for deserving students; 3. organizing self-help vocational project; 4. helping improve the techniques in agriculture and in the native industries, such as black-smithing, ceramics, basket weaving, hat-making, etc.; 5. propagating cooperatives; 6. entering into contracts and accepting donation; 7. and doing all other acts necessary for the attainment of the aforesaid main objectives; that the organization shall be maintained and financed by membership dues and that no part of its net income shall inure or accrue to the benefit of any individual member. Based on the foregoing facts, this Office believes and so holds that the Tayum Organization For Progress, Inc., is a civic league or organization not organized for profit but operated exclusively for the promotion of social welfare as contemplated under Section 27(g) of the Tax Code. Accordingly, it is exempt from the payment of income tax as well as the filing of the income tax returns. However, 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 activities as well as sources and disposition of income. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3