BIR Ruling

June 7, 1974 Santa Maria Cultural Foundation, Inc. Iloilo City Attention: Miss Marvie Abraham Singson 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(e) of the Tax Code. Investigation conducted by this Office disclosed that the Corporation is a non-stock, non-profit charitable corporation duly registered with the Securities and Exchange Commission on July 23, 1973; that the purpose for which the Corporation was organized is to give aid and support to private or public institutions of learning, especially to the Santa Maria Parish School of Iloilo City, for the cultural, social, mental, moral and physical enhancement of its students, their families, to the members of this foundation, to the general public; that the principal place of office of the Corporation is at General Blanco St., Iloilo City; that the Corporation derives its income from voluntary contributions and donations of its trustees members and the public which is used exclusively to finance scholarships, grants and projects of the Corporation for the general welfare; and that no part of its net income inures or accrues to the benefit of any private individual or member of the Corporation. Based on the foregoing, this Office believes and so holds that the Santa Maria Cultural Foundation, Inc., General Blanco St., Iloilo City, falls within the purview of a Corporation or Association organized and operated exclusively for charitable purposes as contemplated under Section 27(e) 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. However, 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. casia Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5