Tax Liability in the Operation of a Printing Press

May 8, 1980 BIR RULING NO. 045-80 Philippine Medical Association P. O. Box 4039 M a n i l a Attention: Dr . Vicente J . A . Rosales National Secretary Gentlemen : This refers to your letters dated January 21 and February 15, 1980 requesting opinion on whether your exemption from income tax under Section 27(f) of the Tax Code of 1977, as amended, extends to the operation of your printing press which will accept printing orders not only from component medical societies but also from the general public. In reply, please be informed that the organizations enumerated in Section 27 of the Tax Code, as amended by Presidential Decree No. 1457, are exempt from income tax with respect to income received by them as such organizations. However, the income of whatever kind and character of these organizations from any of their properties, real or personal, or from their activities conducted for profit, regardless of the disposition made of such income, are subject to internal revenue taxes. Accordingly, the income which you would derive from the operation of a printing press, being income from an activity conducted for profit, be it intended for the support of humanitarian, professional and non-profit activities within the framework of your corporate purposes shall be subject to income tax. Moreover, you shall be subject to the annual fixed tax of P100 and to the 3% tax as printer on your gross receipts derived from the operation of the printing press, pursuant to Sections 192(1) and 205(15) of the Tax Code of 1977, as amended. Very truly yours, EFREN I. PLANA Acting Commissioner