BIR Ruling No. 021-61

January 23, 1961 BIR RULING NO. 021-61 In answer to your letter . . ., I have the honor to inform you that, pursuant to Section 27(g) of the National Internal Revenue Code, a civic league or organization not organized for profit but operated exclusively for the promotion of social welfare is exempt from the income tax in respect to income received by it as such. LLjur However, in order to establish its exemption and thus be relieved of the duty of filing income tax returns and paying the tax, it is necessary that said league or organization file an affidavit with this Office showing the following: (1) The character of the league or organization; (2) The purposes for which it was organized; (3) Its actual activities; (4) The sources of its income and disposition thereof, whether or not any of the income is credited to surplus or inures or may inure to the benefit of any private shareholder or individual; and (5) In general, all facts relating to the operation of the organization which affect its right to exemption. To the affidavit should be attached a copy of its articles of incorporation, by-laws, and latest financial statement showing the assets, liabilities, receipts, and disbursements of the organization. (Sec. 24, Income Tax Regulations) Upon receipt of the affidavit and other papers, the organization will be informed whether or not it is exempt. In the affirmative case, it need not thereafter make a return of income or any further showing with respect to its status under the law, unless it changes the character of its organization or operations or the purposes for which it was originally formed.(Ibid.). cdasia