BIR Ruling

January 26, 1972 Manila Community Services, Inc. 941 E. delos Santos Avenue Quezon City Attention: Mr . Conrado Niguidula Chairman Gentlemen : This refers to your request for exemption from the payment of income tax and filing of the corresponding income tax return under Section 27 of the Tax Code. Investigation disclosed that the Manila Community Services, Inc., (hereinafter referred to as the corporation) is a non-stock and non-profit organization duly registered with the Securities and Exchange Commission; that the corporation, the formation of which is motivated by Christian concern for the social and economic problems created by urbanization has for its purposes the following: to perform research relative to the social and economic needs of the people and to discover what agencies are now meeting these needs; to service a referral center for persons with social and economic needs; to perform social case work and employment counselling; to assist persons in obtaining job training and employment; to undertake such similar or other activities that are related to those above enumerated; and to purchase, own, hold, acquire, or otherwise accept such property, real or personal, as may be necessary, convenient, or appropriate for any of the aforementioned objectives; that for the purpose of attaining or furthering any of the objects hereinbefore stated, to do any other acts and things and to exercise any powers, which a juridical person could do and exercise and which now or hereinafter may be authorized by law; that the sources of support of the corporation shall be contributions and donations from religious and civic groups, government agencies, business firms and individuals, here in the Philippines and abroad; that the income of the corporation which is derived solely from contributions and donations from religious and civic groups is appropriated to activities and services rendered to persons with social and economic needs and to carry out its purposes; and that no part of the income of the corporation is credited to surplus or inures or may inure to the benefit of any private individual. In view of all the foregoing, this Office believes and so holds that the Manila Community Services, 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 from the filing of the corresponding income tax return. It is however, 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. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue