BIR Ruling

March 10, 1976 Quiapo Parochial School, Inc. Plaza Miranda, Quiapo Manila Gentlemen : In reply to your letter dated March 8, 1975, I have the honor to inform you that Presidential Decree No. 305 subjecting to income tax non-stock educational institutions took effect beginning calendar year 1974 and fiscal year beginning July 1, 1974. Accordingly, if your latest fiscal year began on May 1, 1974, as a non-stock educational institution, you are still exempt from income tax and, hence, exempt from the filing of an income tax return, for said fiscal year with respect to income derived from educational purposes. However, for said fiscal year, you are subject to income tax on income of whatever kind and character from your properties, real or personal. Accordingly, the interest income of P3,086.81 derived by you for the said fiscal year ending April 30, 1975 is subject to income tax. For the fiscal year beginning on May 1, 1975, you are subject to income tax at the rate of 10% of your net taxable income and on your passive investment income, in accordance with Section 24(a) of the Tax Code, as amended by Presidential Decree No. 305. acd 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."