BIR Ruling

May 27, 1976 Messrs. J. S. Zulueta & Co. Certified Public Accountants P.O. Box 2405, Manila Gentlemen : This refers to your application for qualification on behalf of your client, the Equitable Bank Foundation, Inc., as a donee or legatee entitled to the benefits of Presidential Decree No. 507. cdta Investigation conducted by this Office show that the Equitable Bank Foundation, Inc., 262 Juan Luna Street, Manila, is a non-stock, non-profit Foundation duly registered with the Securities and Exchange Commission; and that the Foundation is a social welfare, cultural and charitable organization as defined in Sections 3(a), 3(b) and 3(c) of Revenue Regulations No. 8-74 implementing Presidential Decree No. 507, no part of the net income of which inures to the benefit of any of its members. In view thereof, and pursuant to Presidential Decree No. 507, all gifts, bequest, donations and/or contributions to that Foundation are exempt from the donor's and estate taxes and shall be deductible in full in computing the taxable net income of the donor, subject to the condition that not more than 30% of the donation or bequest shall be used by that Foundation for administration purposes. However, in order that Foundation may maintain its status as a qualified recipient of tax free donation, it should file within three months from the end of its fiscal or calendar year period an annual information return, to which shall be attached the following: (a) A list of the donations and bequest received during the year, which should show the name and address of the donors or testators, the amount or market value of each donation or bequest and the disposition thereof. The list should be certified to by the president or treasurer of the organization; (b) A list of the activities and/or projects undertaken by the organization and the cost of each undertaking or project, which should also be certified to by the president or treasurer of the organization; (c) A certification by the president or treasurer of the organization that not more than thirty per centum (30%) of the total gifts, bequest and donations received during the year was used for administrative purposes; (d) A certification by the president or treasurer of the organization that no part of its net income inures to the benefit of any private stockholder or individual. (Sec. 9, Revenue Regulations No. 8-74 dated September 24, 1974). cdt Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3