Exemption from Internal Revenue Taxes

December 27, 1979 BIR RULING NO. 135-79 Exemption from internal revenue taxes This refers to your letter dated February 5, 1979 requesting that the receipts issued by that Federation be exempted from the requirements of registration and stamping by this Office. It appears from your representations that the Federation is a social welfare and charitable organization affiliated to the Division of Maternal and Child Health, Manila Health Department, City of Manila. To support its projects, the Federation sponsors fund drives and solicit donations for which the associations constituting the Federation issue the corresponding receipts. In reply, I have the honor to inform you that the income of the Federation as a social welfare and charitable organization is not subject to internal revenue taxes. However, the income derived from any of the properties of the Federation, or any activity conducted for profit regardless of the disposition thereof, shall be subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code. (Section 27 of the Tax Code of 1977, as amended). Considering that you would be issuing receipts covering both your non-taxable as well as your taxable income, this Office believes that all of said receipts should be duly registered and stamped by this Office prior to their use. (Sec. 19, Revenue Regulations No. V-1) aisa dc