BIR Ruling [DA-480-03]

December 10, 2003 BIR RULING [DA-480-03] R.A. 7356 (Sec. 21); 090-94 Pambansang Komisyon Para sa Kultura at mga Sining 633 General Luna Street Intramuros, Manila Attention: Ms. Maria Fina C. Yonzon Executive Director Gentlemen : This refers to your letter dated September 16, 2002 requesting for tax exemption on all your income and duty obligations under R.A. No. 7356. It is represented that the National Commission for Culture and the Arts (NCCA) is a national government agency under the Office of the President created by R.A. No. 7356 in April 1992; that it is mandated by law to administer the National Endowment Fund for Culture and the Arts or NEFCA which consists of a seed capital of One Hundred Million Pesos from PAGCOR and the 10% of the travel tax given to the Philippine Tourism Authority; and that NEFCA is invested in Treasury Bills. In reply, please be informed that pursuant to Section 21 of Republic Act No. 7356 otherwise known as the "LAW CREATING THE NATIONAL COMMISSION FOR CULTURE AND THE ARTS", the National Commission for Culture and the Arts shall be exempt on all its income and duty obligations. Moreover, all materials that are reasonably necessary and are not manufactured or produced locally for the use of the Filipino artist shall be tax or duty free. Thus, the Commission is exempt from the payment of the 32% corporate income tax as well as the 20% final tax on its interest income derived from Philippine currency bank deposits and yield or any other monetary benefit from deposits substitutes and from trust fund and similar arrangements. (BIR Ruling No. 090-94 dated April 11, 1994) IcAaEH Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group