BIR Ruling [DA-446-98]

October 5, 1998 BIR RULING [DA-446-98] Latter-Day Saint Charities Temple Drive, Greenmeadows 1110 Quezon City Attention: Elder E . Daniel Bowen Area Welfare Director Gentlemen : This refers to your letter dated September 9, 1998 requesting exemption from customs duties and value added tax on your importation of medical equipments from abroad. cdti It is represented that you are a registered humanitarian organization in the Philippines administering humanitarian aid; that you intend to donate medical equipments to 11 hospitals in the Philippines; and that the donees urgently need these equipments. In reply, please be informed that the above request cannot be granted for lack of legal basis. Your importation of medical equipments from foreign institutions is subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the Tax Code of 1997. However, said importation, is exempt from the donor's tax if it is donated to a non-stock, non-profit corporation subject to the condition that not more than 30% of said gift shall be used by the donee foundation for administration purposes, in accordance with Section 101(A)(3) of the Tax Code of 1997 in relation to Section 104 of the same Code. (BIR Ruling No. 110-91 dated June 18, 1991) 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, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)