BIR Ruling

February 24, 1975 Tahanan Outreach Program, Inc. (TPOS) 1101 G. Apacible, Manila Attention: Mr . Domingo E . De Lara President Gentlemen : This refers to your letter dated February 4, 1975 requesting in effect, that you be allowed to establish your qualification as a donee or legatee in order that the benefits of Presidential Decree No. 507 may be availed of. It appears that the Association is a non-stock and non-profit Association duly registered with the Securities and Exchange Commission; that the Association is considered a social welfare organization as defined in Section 3(a) 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 member. aisa dc In view thereof, pursuant to Presidential Decree No. 507, all gifts, bequests, donations and/or contributions to that Association 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 Association for administration purposes. Finally, that Association as a qualified recipient, in order to maintain its status as such, should file within three months from the end of its fiscal or calendar year period an annual information, which shall be attached the following: (a) A list of the donation 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; (b) A list of the activities and/or projects under taken 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, bequests and donations received during the year was used for administration 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.) cd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5