BIR Ruling

January 8, 1976 Share & Care Apostolate Foundation, Inc. 2655 F. B. Harrison, Pasay City Gentlemen : This has reference to your letter of January 6, 1976, requesting for the tax exemption benefits under Presidential Decree No. 507, as implemented by Revenue Regulations No. 8-74 which took effect on July 16, 1974. cdtech It appears from the documentary evidence you submitted that you are a non-stock and non-profit corporation which was organized to render exclusive service to, and to assist, the "Share and Care Apostolate for Poor Settlers" and to that end, to receive, raise, solicit, and administer funds for religious, educational, cultural and charitable purposes, especially for the squatters in resettlement centers, slums and urban areas and the landless, homeless and needy, and those socially oppressed. It also appears therefrom that no part of your net income will inure to the benefit of any stockholder or individual. In view thereof, you are, therefore, considered exempt from income tax, hence, relieved from the duty of filing corporate income tax return and paying the corresponding income tax pursuant to the provision of Section 27(e) of the Tax Code, as implemented by Section 24 of the Revenue Regulations No. 2, otherwise known as the Income Tax Regulations. Likewise, having been organized and operated exclusively, among others, as a cultural and charitable organization, you are, therefore, considered an institution qualified for the tax benefits under Presidential Decree No. 507, as implemented by Revenue Regulations No. 8-74. Henceforth, you shall also be entitled to the following privileges: 1. Donations received by you shall exempt from the donor's gift tax and the donor shall be allowed to deduct in full such donation from his gross income for purposes of income tax for the year when the donation is actually received; and 2. Bequests, legacies and donation MORTIS CAUSA received by you shall also be exempt from estate tax on the part of the estate of the donor giving such bequests, legacies and donations. The above two (2) privileges under Presidential Decree No. 507 shall, however, be enjoyed by you and your prospective donors only, if you shall not utilize for administration purposes, more than 30% of the donation or legacy you receive. Finally, as an exempt institution under Section 27(e) of the Tax Code and under Presidential Decree No. 507, as implemented by Revenue Regulations No. 8-74, you are required to file with this Office within three (3) months after the end of each calendar or fiscal year period, an annual information return to which shall be attached the following: 1. A list of the donations and bequests 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. This list should be certified to by the President or Treasurer of the organization; 2. A list of the activities and/or project 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; 3. A certification by the President or Treasurer of the organization that not more than thirty (30%) per centum of the total gifts, bequests and donations received during the year was used for administration purposes; 4. A certification by the President or Treasurer of the organization that no part of its income inured to the benefit of any stockholder or individual. aisadc Very truly yours, (SGD.) EFREN I . PLANA Acting Commissioner of Internal Revenue TAN 1456-040-3