BIR Ruling [DA-323-03]

September 30, 2003 BIR RULING [DA-323-03] Section 101 (A) (2) DA-107-03 Commission on Filipino Overseas Department of Foreign Affairs Citigold Center, 1345 President Quirino Ave., Cor South Super Highway, Manila Philippines Attention: Mr. Jose Z. Molano Executive Director Gentlemen : This refers to your letter dated February 18, 2003 which was endorsed to this Office by the Chief, International Tax Affairs Division, on March 23, 2003 requesting in effect for a ruling that the donation by overseas Filipino donors of various medical supplies and equipment to various beneficiaries is exempt from whatever taxes due. In reply, please be informed that the donation by non-resident Filipino donors is exempt from donor's tax in view of Section 101(A)(2) of the Tax Code of 1997, which provides that gifts made 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 said Government shall be exempt from tax. (BIR Ruling No. 021-96 dated February 21, 1996) SHcDAI The importation, however, of the said medical supplies, equipment, shall be subject to the Value Added Tax pursuant to Section 107(A) of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group