BIR Ruling [DA-234-03]

July 23, 2003 BIR RULING [DA-234-03] 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 April 22, 2003 requesting for tax exemption on the importation of the donated medicines, medical supplies and medical equipment 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 Universal Aide Society of Canada will donate to the said hospital medicines, medical supplies and medical equipment; and that this donation will allow the doctors and medical staff of the QMMC to serve its patients better. CDISAc 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 medicines, medical supplies and medical equipment made by Universal Aide Society 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) 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 Deputy Commissioner Legal and Inspection Group