BIR Ruling [DA-221-01]

October 25, 2001 BIR RULING [DA-221-01] UN-386-95 The Evangelical Alliance Mission 46-A Scout Borromeo St. Quezon City Attention: Dr. Michael L. McDowell Field Chairman Gentlemen : This refers to your letter dated May 29, 1998 and indorsed to this Office by Assistant Regional Director Virginia P. Tomas on September 21, 1999 requesting in behalf of its following foreign missionaries for exemption from the payment of income tax: 1. Keith Rascher 2. Michael McDowell 3. David Weaver 4. David North 5. Jeffery Miller 6. Grace Peterson 7. Jason Loftis 8. Candace Preston 9. Derill Martin It is represented that The Evangelical Alliance Mission (TEAM) Philippines is a non-stock, non-profit religious corporation existing under the laws of the State of Illinois, United States of America since November 12, 1897; that it is duly licensed to carry out missionary work in the Philippines under Securities and Exchange Commission (SEC) Registration No. 1211 issued on July 4, 1988; that on March 14, 1989, it was granted a certificate of tax exemption as a corporate entity under then Section 26 of the Tax Code, as amended (now Section 30 of the Tax Code of 1997); that on July 24, 1995, it was granted an accreditation as a religious missionary organization for immigration purposes by the Bureau of Immigration; that its missionaries and their respective families do not receive any form of income from any source within the Philippines as this is prohibited by TEAM (Philippines); that their financial support is arranged before they arrive in the Philippines in the country of their origin from donations from Christian churches and the funds are remitted directly to TEAM (Philippines) through the Bangko Sentral ng Pilipinas; and that on July 5, 1996, it applied for exemption from the payment of income tax for its individual foreign missionaries affiliated with it. In reply, please be informed that since the financial support being received by the foreign missionaries are not compensation and/or salary but donations given them prior to their coming to the country, and that the funds are remitted directly to TEAM (Philippines) through the Bangko Sentral ng Pilipinas for the account of the foreign missionaries, said financial support are not, therefore, subject to Philippine income tax. (BIR Ruling No. UN-386-95 dated November 6, 1995) 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 as null and void. Very truly yours, Commissioner of Internal Revenue (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group