BIR Ruling [DA-196-00]

March 30, 2000 BIR RULING [DA-196-00] 101 (B) (2); 055-90; DA-196-2000 Lutheran Church Missionary Synod 41 Denver St., Brgy. Pinagkaisahan Cubao, Quezon City Attention: Rev . Donald E . Treglown Missionary Counselor Gentlemen : This refers to your letter dated October 20, 1999 as indorsed by the Regional Director, Revenue Region No. 7 requesting for a ruling as to whether or not the financial supports received by the Lutheran Church-Missionary Synod (LCMS) foreign missionaries are subject to Philippine income tax. It is represented that LCMS is a non-stock, non-profit religious corporation duly organized and existing under the laws of the State of Missouri, U.S.A.; that the Securities and Exchange Commission (SEC) issued to LCMS (formerly: Evangelical Lutheran Synod of Missouri, Ohio and Other States) a Certificate of License to engage business in the Philippines on December 21, 1948; that it was formed for the purpose of spreading knowledge and teachings about the word of God; and that the missionaries are receiving financial support from abroad by way of grants and contributions which in turn are utilized in their evangelical missions. In reply, please be informed that since the financial support being received by your foreign missionaries are not compensation and/or salary but mere donations, said financial support are not, therefore subject to Philippine income tax. 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.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)