BIR Ruling

March 10, 1976 Rizal Poultry & Livestock Association, Inc. San Mateo, Rizal Attention: Mr . Rosendo Florencio President/Manager 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(a) of the Tax Code. Investigation conducted by this Office disclosed that the Rizal Poultry and Livestock Association, Inc.,is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission; that the purposes for which the corporation is formed are: to help promote the poultry business of the members by acting together as a group in the procurement of feed ingredients, poultry and livestock health products and mixing them, marketing of eggs, chickens, poultry and livestock products and by-products, and in the employment of technical and/or other forms of services, to cooperate with the government and other agencies or entities in the encouragement of poultry raising and the production of more food, to help spread and disseminate useful information, news, as well as other essential knowledge in connection with poultry production, to help conduct experiments in the improvement of quality and efficiency of poultry feeds, control and prevention of diseases and in the uses of poultry products and by-products, to cooperate in the drafting of plans, programs, and in the execution of policies intended to carry out the objectives of the association, to protect the rights and interests of the members and promote more cooperation and understanding among them, and to do all such other things necessary and related directly or incident to or in furtherance of the objectives or business of the association otherwise, not covered by the foregoing clauses mentioned; that the Association derives income principally from regular fees and special assessments from the members and that no part of the net income of the Association inures or accrues to the benefit of any private stockholder or individual. Based on the foregoing facts, the Rizal Poultry and Livestock Association, Inc. San Mateo Rizal, falls within the purview of an agricultural organization not organized principally for profit as contemplated under Section 27(a) of the Tax Code. However, it is required to file on or before April 15 of each year a balance sheet, profit and loss statement together 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 substantial change in its by-laws, articles of incorporation, manner of operation and activities as well sources and disposition of income. cdta 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."