BIR Ruling

April 14, 1976 Davao Del Sur Sugar Planters' Association, Inc. Guihing, Hagonoy, Davao del Sur Attention: Mr . Max Gorre Taghoy Auditor 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 of the Tax Code. Investigation conducted by this Office disclosed that the Davao del Sur Sugar Planters' Association, Inc.,is a non-stock, non-profit association duly registered with the Securities and Exchange Commission; that the purposes for which the Association is formed are: to get aid and help from the government in the propagation of Sugar Culture and Industry; to help the member-planters haul their products; to faster closer cooperation between the member-planters and the management of the Davao Sugar Central Co.,Inc.,and to help for the economic betterment of the members and to do all such other things necessary or incident to or in furtherance of the purposes of the association; that the Association is maintained from contributions, regular and special assessments and dues from the members and that no part of the net income of the Association inures or accrues to the benefit of any private stockholder or individual. Based on the foregoing, facts, the Davao del Sur Sugar Planters' Association, Inc., Guihing, Hagonoy, Davao del Sur, falls within the purview of an agricultural organization not organized principally for profit as contemplated under Section 27(a) of the Tax Code. Accordingly, it is exempt from the payment of income tax and the filing of the corresponding income tax return. However, it is required to file on or before April 15 of each year a balance sheet, profit and loss statement together 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 substantial 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 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."