BIR Ruling No. 140-14

May 23, 2014 BIR RULING NO. 140-14 000-000 Poblador Bautista & Reyes Law Offices 5th Floor SEDCCO 1 Building 120 Rada cor Legaspi Sts. Legaspi Village, Makati City Attention: Alexander J. Poblador Legal Counsel Gentlemen : This refers to your letter dated 13 October 2010 for the issuance of a certificate of tax exemption enjoyed by a non-stock, non-profit organization pursuant to Section 30 of the Tax Code of 1997, as amended. It is represented that PLAN INTERNATIONAL is a non-stock, non-profit corporation organized under the laws of the State of New York, United States of America. On 27 February 2009, the Securities and Exchange Commission (SEC) issued PLAN INTERNATIONAL a License to Transact Business in the Philippines, authorizing it to establish its branch office in the Philippines "to provide social and development services, and financial and material assistance to children and their needy families and communities." In support of your request, PLAN INTERNATIONAL have submitted the following documents: a. SEC Philippines certified true copy of PLAN INTERNATIONAL's License to Transact Business in the Philippines with the following attachments: i. Application of a non-stock foreign corporation to establish a branch/representative office in the Philippines or SEC Form No. F-108; HIaAED ii. Affidavit of Resident Agent; iii. Consularized Extract from the Minutes of Meeting of the Executive Committee of PLAN INTERNATIONAL authorizing renewal of registration in the Philippines; iv. Consularized Registration of the International Board of Directors of PLAN INTERNATIONAL appointing a resident agent for its operations in the Philippines; v. Consularized Restated Certificate of Incorporation with Amended Articles of Incorporation; and b. Photocopy of PLAN INTERNATIONAL's BIR Certificate of Registration. In reply, please be informed that pursuant to the last paragraph of Section 5 (a) of Revenue Memorandum Order 20-2013 which states that, viz. : "A branch office of a foreign non-stock, non-profit corporation cannot qualify as a tax-exempt corporation under Section 30 of the NIRC, as amended." In view of the foregoing, your request for the exemption of PLAN INTERNATIONAL as a non-stock, non-profit corporation under Section 30 of the Tax Code of 1997, as amended, is hereby denied for lack of legal basis. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue