BIR Ruling [DA-128-97]

March 25, 1997 BIR RULING [DA-128-97] Dominican Sisters of the Anunciata 12 P. Bernardo St., Cubao Quezon City Attention: Sr . Montserrat Casellas, O . P . Local Superior Gentlemen : This refers to your letter dated March 14, 1997 requesting, in effect, for a ruling as to whether the financial support received by Dominican Sisters of the Anunciata foreign missionaries appointed here in the Philippines are exempt from Philippine income tax. LLpr It is represented that the Dominicas De La Anunciata Philippines, Inc., is a corporation sole duly organized and existing under the laws of the Philippines; that it is a non-stock, non-profit, tax exempt religious organization; that the Dominicas De Las Anunciata Philippines, Inc. recruits missionaries from different countries, such as the United Kingdom and Brazil, whom they send to foreign mission fields such as the Philippines; that at present, five (5) foreign missionary sisters are assigned in the Philippines, i.e., Sr. Sagrario Llorente, Sr. Ma. Natividad Martinez, Sr. Bernadette Reid, Sr. Ildete Magalhaes and Sr. Montserrat Casellas; that to insure that they do not become financial liability here, the congregation in Spain guarantees all their financial supports for as long as they are in the Philippines; and that the funds are normally coursed thru the congregation in Spain and then remitted to the Dominicas De La Anunciata Philippines, Inc., to the account of the foreign missionary concerned. In reply, please be informed that since the financial support being received by the foreign missionaries are not compensation and/or salary but donations which were given to them prior to their coming to the country; and that the funds are merely coursed through the congregation in Spain and then remitted to the Dominicas De La Anunciata Philippines, Inc. for the account of the foreign missionary, said financial supports are not, therefore subject to Philippines income tax. (BIR Ruling No. 54-90 dated April 6, 1990) prll 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, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)