BIR Ruling

February 15, 1973 Atty. A. B. Gutierrez, Jr. 1564 A. Mabini Street Ermita, Manila S i r : This refers to the request of your client, the Philippine Yoga Society, Inc., for exemption from income tax and the duty to file income tax returns under Section 27(e) of the Tax Code. It appears that the Philippine Yoga Society, Inc. is a non-stock, non-profit educational and cultural organization, duly registered with the Securities and Exchange Commission on April 24, 1972; that the purposes and activities of the society, among others, are as follows: "a. To disseminate and teach the science of Yoga for the perfect development of the three components of man, namely, physical, mental and spiritual. acd b. To investigate the laws of Nature and to discover the true nature of man and his relationship to life. c. To stimulate and develop through study, discipline and practical application the powers latent in every human being. d. To propagate the values of Yogic Living. e. To print, publish and circulate Yogic literature and set up libraries of Yogic literature and make it available to the greatest number of people. f. To conduct lectures on Yoga covering all the various aspects of the science. g. To set up laboratories and related facilities for the purpose of conducting investigations, studies and researches on Yoga and publishing the results thereof. h. To establish therapy clinics for the purpose of curing diseases by Yoga therapy under the directions of licensed physicians who are Yoga practitioners. i. To contribute peace and harmony in the world by promoting love and fraternity among people of various countries without distinction in order to bring the world closer and foster universal respect for humanity. j. To work for the progressive utilization of all the potentialities hidden in man-physical, metaphysical and spiritual." that the sources of income of the society are membership fees and contributions and/or gifts from individuals or corporations in the Philippines or abroad; and that the income of the society will be utilized solely for the attainment of its purposes and the pursuit of its activities as contained in the Articles of Incorporation and By-Laws, and that no part of its income shall inure, directly, to benefit any of its members, supporters or practitioners. Based on the foregoing facts and jurisprudence, the Philippine Yoga Society, Inc., falls within the purview of a corporation or association organized and operated exclusively for educational and cultural 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 of 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 balance sheet, profit and loss statement and 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 change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. Finally, this ruling shall be revoked if upon investigation the facts are different from those represented. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue