Tax Exemption Granted to Gintong Alay Educational and Fund Campaign

January 12, 1981 BIR RULING NO. 008-81 53-f 000-00 008-81 Gintong Alay Educational & Fund Campaign JMDC Bldg., 142 Amorsolo St. Legaspi Village, Metro Manila Attention: Mr . Michael M . Keon Executive Director Gentlemen : In reply to your letter dated December 18, 1980, please be informed that pursuant to Presidential Proclamation No. 2031 dated November 11, 1980, for greater effectivity of the campaign, the Gintong Alay Educational and Fund Campaign shall be exempted from the payment of all forms of taxes in the purchase of products and goods to be used as prizes in its national grand, raffle called THE GINTONG ALAY GOLDEN DRAW, and that winners in said draw will likewise be exempted from payment of corresponding taxes. Under this provision, the Fund Campaign may purchase tax-free the products and goods to be used in the grant raffle. This means that the supplier-manufacturer of said products and goods may sell them to the Fund Campaign without adding to the purchase price the sales tax due thereon. Likewise, the winners in the raffle are exempt from income tax. Consequently, their prizes are exempt from the withholding tax prescribed by Section 1(f) of Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79. Very truly yours, RUBEN B. ANCHETA Acting Commissioner