BIR Ruling [DA-199-06]

March 29, 2006 BIR RULING [DA-199-06] 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 confirmation of your opinion that the religious missionaries, Mark James Presson and Maria Katarina Eriksson Presson, US and Swedish respectively, are exempt from the income tax and the filing of the corresponding income tax return. It is represented that the missionaries are members of the Star of Hope Sweden, Inc., a non-stock, non-profit religious corporation created and existing under the laws of Sweden; that they are assigned to do religious/charitable works in the Philippines through the Star of Hope Philippines, Inc., a non-stock, non-profit religious corporation created and existing under the laws of the Philippines; that the missionaries do not receive any compensation, allowances or any amounts from the Star of Hope Philippines, Inc. or from any local source for their missionary works in the Philippines; and that their only source of income comes solely from the individual foreign members of the Star of Hope Sweden, Inc. in Sweden in the form of donations, love gifts, financial assistance, support and helps for their sustenance. 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. SCIacA Very truly yours, (SGD.) PABLO M. BASTES, JR. OIC-Head Revenue Executive Assistant Legal Service