BIR Ruling [DA-508-98]

November 19, 1998 BIR RULING [DA-508-98] Office of the President of the Philippines Malacaang Manila Attention: Ms . Justa K . Tantoco Chief of Staff Office of the First Lady Gentlemen : This refers to your letter dated October 16, 1998 requesting exemption from value added tax on the donations of vaccines for anti-TB and tetanus shots by the World Emergency Relief from the United States to be utilized for the "SERBISYONG PANGGAMUTAN" project of First Lady Luisa Ejercito Estrada. cdt In reply, please be informed that the above request cannot be granted for lack of legal basis. Your importation of vaccines and tetanus shots from a foreign institution, 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. 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, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue