BIR Ruling

February 26, 1974 St. Peter and St. John Technical School Reparo St., Bagong Barrio, Caloocan City Attention: Sis . Mercedes Losada, A . C . I . Directress Gentlemen : This refers to your letter dated April 26, 1973 requesting exemption from the payment of income tax and filing of the corresponding income tax return under Section 27(e) of the Tax Code. In reply, thereto, I have the honor to inform you that, pursuant to Section 24(a) of the Tax Code, as amended by Presidential Decree No. 305, beginning the calendar year 1974, and fiscal year beginning July 1, 1974, as the case may be, non-stock private educational institutions, e.g., the St. Peter and St. John Technical School, are already subject to a tax of 10% of their taxable net income from the operation of the school, related school activities, and on their passive investment income consisting of interest, dividends, royalties and the like. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5