Parent-Teacher Associations or Barrio Councils Undertaking the Construction and/or Repair of School Buildings, Exemption from Tax

April 15, 1973 BIR RULING NO. 012-73 Parent-teacher associations or barrio councils undertaking the construction and/or repair of school buildings, exemption from tax . Section 12 of Republic Act No. 5979, otherwise known as the Public Works Act of 1969 provides as follows: "SEC. 12. Prosecution by Civic Organizations, Barrio Councils and Parents-Teachers Association of Community Development Projects . Whenever the appropriation amounting to not more than twenty-five thousand pesos for any public works project which does not require complicated methods of construction nor highly specialized techniques is released or made available for expenditure, wholly or partly, such project may be undertaken by administration without the necessity of securing the previous authority from the Office of the President. "The work shall then be prosecuted by the Barrio Council, or the most concerned civic organization or the Parents-Teachers Association in the case of school building projects, or by direct administration of the District or City Engineer, whichever is the most advantageous to the government as may be determined by the District or City Engineer in the manner herein provided. "xxx xxx xxx "The provisions of existing laws to the contrary notwithstanding, the Civic Organization, Parents-Teachers Association or Barrio Council undertaking any work under this Section shall be exempt from any kind of proposal or performance bond, and from all taxes and imposts relating thereto." Under the above-quoted provision, Civic Organization, Parents-Teachers Association or Barrio Council concerned undertaking the construction and/or repair of a school building project by negotiated contract is not subject to the 3% contractor's tax imposed by Section 191 of the Tax Code, subject to the following conditions: 1. That the appropriation for the project amounts to not more than P25,000.00; and 2. That the project does not require complicated methods of construction nor highly specialized techniques.