BIR Ruling [DA-495-03]

December 10, 2003 BIR RULING [DA-495-03] Sec. 107 VAT Ruling 072-91 World Family of Good People Foundation, Inc. 2nd Floor Bonifacio Market, Monumento, EDSA Caloocan City Attention: Dr. Jocelyn C. Park President Gentlemen : This refers to your letter dated November 26, 2002 stating that the World Family of Good People Foundation Inc. is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission on January 18, 2002 under SEC Registration No. A200200853 and likewise duly registered with the Department of Social Welfare and Development; that the primary purpose of the corporation is to help provide medical services for poor patients inflicted with tuberculosis; that most of the patients belong to the lower income bracket or who are actually indigents who definitely could not afford to shoulder the expenses of the complete medical treatment; that the foundation has been doing its share in eradicating the dreadful and communicable illness in the country by providing free medicines for the whole duration of the treatment which is six (6) months for TB patients; that with the end view of maximizing its effort to this campaign, the foundation thru the assistance of its mother foundation named Good People World Family based in Korea, plans to send anti-TB drugs to World Family of Good People Foundation, Inc. in the Philippines who will be in charge of the distribution of the said medicine to different government hospitals and health centers in Metro Manila; and that TB patients will receive complete medical treatment for six (6) months and without, any cost. Based on the foregoing, you now request for exemption from payment of value-added tax on Anti-TB drugs donated by Good People World Family based in Korea. In reply, please be informed that as a non-stock, non-profit organization, the World Family of Good People Foundation Inc. is exempt only from income tax on income received by it as a social welfare organization under Section 30(G) of the Tax Code of 1997 and is not exempt from other taxes. As such, the-donation received from abroad by said Foundation is subject to 10% VAT pursuant to Section 107 of the Tax Code of 1997. (VAT Ruling No. 072-91 dated July 17, 1991) CTEDSI Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group