Institucion Teresiana de Educacion Y Cultura Inc.

February 6, 2008 BIR RULING [DA-078-08] 101 (A) (3); UN-206-95 Institucion Teresiana de Educacion Y Cultura Inc. 1569 Dapitan St., Sampaloc, Manila Attention: Ms. Fabiola A. Bustamante Controller Gentlemen : This refers to your letter dated February 5, 2008 requesting for a ruling to confirm the exemption of your benefactors from the payment of donor's tax and that they be allowed to claim full-deductibility of their donations from their taxable business income. It appears that Institucion Teresiana de Educacion Y Cultura Inc. (Institucion) is a non-stock, non-profit educational institution duly organized under Philippine laws. It is the entity which established, operate and maintain the Saint Pedro Poveda College. It was granted an updated tax exemption/confirmation of exemption from the payment of taxes under Sec. 4, Art. XIV of the 1987 Constitution, as per ENPS-010-2007 dated March 19, 2007. In preparation for the upcoming Golden Anniversary Celebration of Saint Pedro Poveda College on 2010, one of Institucion's project is to solicit donations from alumnae, parents, friends and benefactors to finish and equip the gymnasium/auditorium of the said school which is presently being constructed. In reply, please be informed that inasmuch as the donee is an educational institution, the aforementioned donations are exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than 30% of said gifts shall be used by the donee for administration purposes. IDSaAH This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service