BIR Ruling

September 21, 1971 The President Philippine Institute of Certified Public Accountants Suite 631 Metropolitan Bank Bldg. Ayala Avenue, Makati Rizal S i r : This refers to your letter dated September 20, 1971 requesting information as to whether or not donations to the Institute either from its members or the general public which it intends to solicit in connection with its project to acquire a lot where it will construct its own building is deductible expense on the part of the donors or contributors. acd It is represented that the Institute is a non-stock and non-profit organization with objectives as follows: (1) To promote and maintain high professional and ethical standards among accountants; (2) To advance the science of accounting; (3) To develop and improve accountancy education; (4) To encourage cordial relations among accountants; and (5) To protect the certificate of Certified Public Accountants as granted by the Republic of the Philippines. In reply, I have the honor to inform you that the Institute qualifies as an organization operated exclusively for educational or scientific purposes under Section 27(e) of the Tax Code and, therefore, donations or contributions to it are deductible from the donor's or contributor's gross income to the extent not in excess of 6% in the case of an individual, and 3% in the case of a corporation, of the donor's or contributor's net income computed prior to the allowance of this deduction. aisa dc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue