BIR Ruling

October 20, 1975 Quiason, De Guzman, Makalintal & Veneracion Attorneys-at-Law Second Floor, Chronicle Building Meralco Avenue Pasig, Rizal 3130 Attention: Atty . Camilo D . Quiason For the Firm Gentlemen : This refers to your application for qualification on behalf of your client, the Eugenio Lopez Foundation, Inc., as a donee or legatee entitled to the benefits of Presidential Decree No. 507. cdta It appears that the Eugenio Lopez Foundation, Inc., Pasay City, is a non-stock, non-profit Foundation duly registered with the Securities and Exchange Commission; that the Foundation was organized and is being operated for scientific advancement and that its funds are dedicated to scientific pursuits within the meaning of Section 24 of Republic Act No. 2067, as amended under Certification No. 72-F-038 dated June 30, 1972; and that the Foundation is considered a cultural organization as defined in Section 3(b) 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 bequests, 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 the Foundation for administration purposes. Finally, the Foundation as a qualified recipient, in order to maintain its status as such, should file within three months from the end of its fiscal year period an annual information, to which shall be attached the following: (a) A list of the donations, bequests received during the year, which should show the name and address of the donors or testators, the amount or market value of such donations or bequests and the disposition thereof. This list should be certified to by the president or treasurer of the organizations; (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, 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). Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3