BIR Ruling [DA-198-06]

March 29, 2006 BIR RULING [DA-198-06] 30 (E); DA-072-02 Sta. Romana & Sta. Romana Unit 10E, Tower 1, Eastwood Excelsior 121 Eastwood City E. Rodriguez Jr. Avenue Bagumbayan, Quezon City Attention: Atty. Antonio B. Sta. Romana Gentlemen : This refers to your letter dated February 27, 2006 requesting for exemption from the withholding/income tax of the congregation's local and foreign pastors, missionaries, evangelists and religious workers on the financial assistance and support they are receiving which comes merely from tithes, offerings and donations extended to the Faith Evangelical Churches of the Philippines, Inc. (FECPI) for sustenance. It is represented that the FECPI is a non-stock, non-profit religious corporation duly organized and existing under the laws of the Philippines with principal office address at 976 Aurora Boulevard, Project 4, Quezon City; that FECPI is incorporated on May 4, 1990 with the Securities and Exchange Commission (SEC); that the purpose for which FECPI was organized is to ". . . proclaim the gospel of the Lord Jesus Christ as found in the Holy Bible; the planting of churches through the organizing of believers into congregations; the establishment of home Bible study classes, of training centers for laymen and Bible Schools/seminars for the training of pastors; and other such Christian outreach and other activities relating thereto, consistent with the object of FECPI as may from time to time be determined by the Board of Trustees." In reply thereto, 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. DA072-02 dated April 19, 2002 ) 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. aEcHCD Very truly yours, (SGD.) PABLO M. BASTES, JR. OIC-Head Revenue Executive Assistant Legal Service