BIR Ruling [DA-072-02]

April 19, 2002 BIR RULING [DA-072-02] Capitol City Baptist Church 111 West Avenue, Quezon City Attention: Mr. Eugene O. Sebuala Office Administrator Gentlemen : This refers to your letter dated June 23, 2000 requesting for exemption from the withholding/income tax of the congregation's ministers, pastors, missionaries, evangelists and christian workers/staff on the financial assistance and support they are receiving which comes merely from tithes, offerings and donations extended to your congregation for sustenance. It is represented that Capitol City Baptist Church is a non-stock, non-profit religious organization duly registered with the Securities and Exchange Commission under SEC Registration No. 23674 dated August 21, 1963; that the objective of the corporation is for the maintenance of the preaching of the Gospel, the administration of the Ordinances of the New Testament, the spiritual improvement and edification of its members and evangelizing the world; and that it now desires to incorporate for the administration of its temporalities or the management of its properties or estates. In reply, please be informed that if the ministers, pastors, missionaries, evangelists and christian workers/staff will not derive any personal income except for the necessary support for their daily maintenance, said financial assistance and support are not subject to income tax prescribed under Section 24(a) of the Tax Code of 1997 considering that the said financial support is not compensation and/or salary but donations which were given to the congregation. Accordingly, they need not file income tax return. (BIR Ruling No. UN-377-95 dated October 17, 1995 citing BIR Ruling No. 082-94 dated April 4, 1994) 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service