BIR Ruling [DA-026-98]

January 29, 1998 BIR RULING [DA-026-98] Mindanao Pageantry, Inc. Davao, Philippines Attention: Mr. Anthony V. Tiempo President Gentlemen : This refers to your letter dated November 11, 1996 requesting exemption from tax of the proceeds derived from the launching of the Search for 1996 Ginoong Mindanao sponsored by you on December 22, 1996 at the Almendras Gym, Davao. It is represented that Mindanao Pageantry, Incorporated is a non-stock and non-profit entity organized to campaign for the eradication of drug addiction, undertake amateur sports training to foster self-discipline, teamwork and excellence for the development of a healthy citizenry and establish friendship through quest and sport competition; and that in order to support Davao Mental Hospital, the organizers of the pageant will give the whole proceeds of the pageant to the said Hospital after the deduction of the expenses. In reply, please be informed that the proceeds you derived in connection with the holding of the above pageant are not subject to income and business taxes. Such income, however, should be declared in the annual information return to be filed by you on or before April 15, 1997 (BIR Ruling No. 245-92 dated September 2, 1992). Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)