BIR Ruling [DA-026-01]

March 5, 2001 BIR RULING [DA-026-01] 24 (A); 32 (B) (3); 104 DA-198-2000 Ms . Mary Sutherland Brookes Point, Palawan M a d a m : This refers to your letter dated January 15, 2001 requesting for a ruling on whether or not you are liable to pay income tax even without receiving any salary in the Philippines. It is represented that you are a resident alien who came to the Philippines in 1936 as a faith missionary and have been a permanent resident of Brookes Point in Palawan since then; that there have been periods that you were out of the country just to attend to your children abroad but your home was in fact in Brookes Point in Palawan; that you receive gifts and free-will offerings from U.S., U.K and Canada and also those coming from individuals and churches; and that you are now 84 years old and someone mentioned to you that you should not have to pay income taxes. In reply, please be informed that being a faith missionary who does not receive any fixed salary but only gifts and free-will offerings from abroad and from individuals and churches, you are exempt from the payment of income tax. Pursuant Sec. 32(B)(3) of the Tax Code of 1997, the value of property received or acquired by gift, bequest, devise, or descent shall not be considered as pertinent item of gross income, provided, however, that income from such property, as well as gift, bequest, devise, or descent of income from any property, in cases of transfers of divided interest shall be included in gross income. (BIR Ruling No. DA-198-2000 dated March 30, 2000) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. HDTcEI Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group