Association for Competence and Excellence in Studies Philippine School of Business Administration

February 9, 2009 BIR RULING-[DA-(I-002) 073-09] 30 (C); BIR Ruling No. 522-88 Association for Competence and Excellence in Studies Philippine School of Business Administration No. 826 R. Papa Street, Sampaloc, Manila Attention: Ms. Chimmy Gapac ACES Vice President for External Affairs Gentlemen : This refers to your letter dated December 10, 2008 requesting for a legal opinion on the tax implications of the event organized by Association For Competence And Excellence In Studies (hereinafter "ACES") . It is represented that ACES is a non-stock, non-profit duly recognized student organization of the Philippine School of Business Administration-Manila; that ACES is currently organizing an event entitled "Mr. And Ms. PSBA '09"; that the event will transpire on February 13, 2009; that for such event, the association will issue 600 tickets priced at PhP80.00 per ticket; and that the proceeds from the said event will be used to finance the association's project for this semester "Tulong sa Kabataan", an outreach program which aims to help the less fortunate as well as to defray all expenses necessary to cover the event including mobile rental, stage decoration, prizes and other miscellaneous expenses that may arise. In reply, please be informed that the proceeds to be derived by ACES in connection with the event entitled "Mr. And Ms. PSBA '09" it is holding on February 13, 2009, which proceeds shall be applied for charitable work and other magnanimous projects, are not subject to income and business taxes. (BIR Ruling No. 29 (h)-440-88-552-88). It is also exempt from value added tax (VAT) because the selling of tickets for the event is not a business activity contemplated by the phrase "in the course of trade or business" under Section 105 of the 1997 Tax Code, as amended. CDcHSa 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service