Tax Exemption Granted to the Philippine Red Cross

February 18, 1959 BIR RULING NO. 078-59 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila. The Philippine National Red Cross is a public corporation created "to assist the Republic of the Philippines in discharging the obligations set forth in the General Red Cross Convention and to perform such other duties as are incumbent upon the National Red Cross Society. It is a charitable organization operated as an agency of the Republic of the Philippines. prll The Secretary of Justice, in his opinion No. 42 dated July 5, 1949, held that inasmuch as the Philippine National Red Cross is an agency of the Government which is engaged, not in business or industry for profit, but in humanitarian and relief activities, it is exempt from the payment of the compensating tax on supplies and equipment which it received from time to time as donations from welfare organizations abroad and on supplies and equipment which it imports for its exclusive use. In view of the foregoing, the raw materials to be imported by the Philippine Red Cross for processing into donor sets and blood-bottle containers are exempt from internal revenue tax. cdta (SGD.) JOSE ARAAS Commissioner of Internal Revenue