BIR Ruling [DA-233-03]

July 23, 2003 BIR RULING [DA-233-03] 101 (B) (1) 371-2000 Hon. Ma. Theresa "Maite" T. Defensor Assistant Majority Floor Leader 3rd District, Quezon City House of Representatives Quezon City M a d a m : This refers to your letter dated June 27, 2003 requesting for tax exemption on the importation of the donated medical equipments in favor of a government hospital. It is represented that the Quirino Memorial Medical Center (QMMC) is a government hospital in the third district of Quezon City; that the Opportunities for the Disabled Foundation of Canada will donate to the said hospital medical equipments (40 pieces hospital beds with mattresses and 30 pieces bed tables); and that this donation will allow the doctors and medical staff of the QMMC to serve its patients better. In reply, please be informed that under Section 101(B)(1) of the Tax Code of 1997, "gifts made by a non-resident to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the Government" shall be exempt from donor's tax. Accordingly, the subject donation consisting of medical equipments made by the Opportunities for the Disabled Foundation of Canada to QMMC, a government hospital in the third district of Quezon City, is exempt from donor's tax. However; the subject importation shall be subject to the 10% VAT pursuant to Section 107(A) of the Tax Code of 1997. ( BIR Ruling No. DA-371-2000 dated October 25, 2000 ) AcHEaS 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, (SGD.) JOSE MARIO C. BUAG Duty Commissioner Legal and Inspection Group