Exemption from Income and Business Taxes of Commission Constituted for Non-profit Purposes

May 8, 1984 BIR RULING NO. 091-84 324-0-000-00-091-84 S i r : This refers to your letter dated March 6, 1984 stating that the Sangguniang Bayan of Concepcion, Tarlac, has, in a Resolution No. 44, series of 1983, created a Commission of private citizens to undertake the erection of a monument to honor its leading citizen; and that the Commission constituted will solicit contributions for which it will issue receipts to acknowledge the same. You would like to seek advice from this Office whether the Commission need to file any kind of application for exemption. In reply, please be informed that based on your representation, the Commission having been constituted for non-profit purposes is exempt from income and business taxes. However, the Commission is advised to keep books of accounts to reflect its transactions which shall be contained in the financial statements to be attached to the annual information return which will be filed with this Office on or before April 15 of each year in accordance with Section 24 of Revenue Regulations No. 2. It is also advised to issue receipts for contributions received because if the contributions are claimed by the contributors as deduction for income tax purposes, said receipts will substantiate said claim. Finally, the Commission should register with the Government & Tax-Exempt Corporation Division of this Bureau, in order that the Commission can be considered a qualified donee institution in which case, the contribution to it can be deductible in full for income tax purposes, from gross income of the contributor, pursuant to Section 30(h) of the Tax Code, as amended by Batas Pambansa Blg. 45 and as implemented by BIR-NEDA Regulations No. 1-81. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner