Philippine National Red Cross No Longer Exempt from Value Added Tax on Importations and Local Procurement of Materials and Services as well as from 20% Withholding Tax on Bank Deposits and Placements under P.D. 1643

February 27, 1996 BIR RULING NO. 026-96 24 000-00 026-96 Mr. Jorge M. Briones Chief of Staff, Office of the Secretary Department of Finance Manila S i r : This refers to your letter dated July 21, 1995 requesting a ruling as to whether the Philippine National Red Cross (PNRC) is exempt from paying value added tax (VAT) on its importations and local procurement of materials and services as well as from the 20% withholding tax on bank deposits and placements under Section 4 of P.D. 1643. prcd In reply thereto, please be informed that Executive Order No. 93 effective March 10, 1987 withdrew all tax and duty incentives granted to government and private entities. Such being the case, PNRC is subject to the 10% VAT on its importations of goods. It is likewise subject to the 10% VAT on its local procurement of materials and services for its exclusive use. Moreover, interest from Philippine currency bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements of the PNRC shall be subject to the 20% tax pursuant to Section 24 (e) of the Tax Code, as amended. cd Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue