BIR Ruling [DA-371-00]

October 15, 2000 BIR RULING [DA-371-00] 101 (B) (1) Governor Rene L. Relampagos Office of the Governor Province of Bohol Tagbilaran City S i r : This refers to your letter dated October 11, 2000 requesting for tax exemption on the importation of the donated used medical supplies and medical equipment in favor of a government hospital. SETaHC It is represented that the Catigbi-an District Hospital is a government hospital in the province of Bohol; that the World Medical Relief, Incorporated, a non-profit organization based in Michigan, U.S.A., will donate to the said hospital used medical supplies and medical equipment; and that this donation would really be a big help to it considering that the said hospital serves a number of municipalities in Bohol threatened by insurgency problems. 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 to profit, or to any political subdivision of the Government" shall be exempt from donor's tax. Accordingly, the subject donation consisting of used medical supplies and medical equipment made by World Medical Relief, Incorporated, a non-profit organization based in Michigan, U.S.A., to Catigbi-an District Hospital, a government hospital in the province of Bohol, 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. 057-98 dated November 18, 1998) 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. aCTcDS Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group