BIR Ruling

August 19, 1971 SOS Children's Village Philippines, Inc. Rooms 327-329 FMII Building Aduana, Intramuros Manila Attention: Mr . Generoso V . Jacinto President Gentlemen : This refers to your letter dated April 14, 1971 requesting exemption of the SOS Children's Village Philippines, Inc., Rooms 327-329 FEMII Building, Aduana, Intramuros, Manila, from the payment of income tax and filing of the corresponding income tax return under Section 27 of the Tax Code. cdta It is represented that the SOS Children's Village Philippines, Inc. (hereinafter referred to as the corporation) is a non-stock and non-profit civic organization duly registered with the Securities and Exchange Commission; that the purposes for which the corporation was formed are: to establish and maintain a non-profit and non-partisan organization that shall endeavor to provide food, clothing, shelter, medical attention, protection and education to orphaned, abandoned or otherwise homeless children as well as to those born of destitute or incompetent parents; to solicit subject to the provisions of Act No. 4075 contributions and donations from both private and public sources; to acquire loans and to employ such other means of fund-raising as are or may be authorized under existing laws and regulations; to purchase, lease or otherwise acquire lands and buildings; and to erect family size houses and villages and to establish social institutions directed are furthering the aims of the corporation; that the place where the principal office of the corporation is to be established or located is in Manila, Philippines; that the term for which the corporation is to exist is fifty (50) years from and after the date of its incorporation; that the corporation derives its income from contributions and donations from both private and public sources; and that no part of the net income of the corporation is distributed to its members. Based on the foregoing representations, this Office believes and so holds that the SOS Children's Village Philippines, Inc. falls within the purview of a charitable and civic organization not organized for profit but operated exclusively for the promotion of social welfare as contemplated under Section 27(e) and (g) of the Tax Code. Accordingly, it is exempt from the payment of income tax. It is however, subject to income tax on income derived from any of its properties, real or personal, or from any activity conducted for profit, regardless of the disposition made of such income. If it has not earned any taxable income, it is also exempt from the filing of income tax returns. Moreover, 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. acd This Office, may however, revise or modify this ruling, if upon investigation, it will appear that the facts are different from those upon which the ruling is predicated. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue