Proceeds from Fund Raising Campaign of PNRC are Not Subject to Income and Business Taxes

August 2, 1991 BIR RULING NO. 144-91 26 (g) 11-90 144-91 Gentlemen : This refers to your letter dated February 26, 1991 stating that the Philippine National Red Cross (PNRC) has been authorized under Presidential Proclamation No. 12, by President Corazon Aquino to undertake its 1991 Fund Campaign and Membership Drive. As one of its fund raising events, PNRC will sponsor the "Big Bang sa Alabang" carnival from November 23, 1991 to January 5, 1992 on a vacant lot in front of Ayala Alabang Village, Muntinlupa, Metro Manila; and that pursuant to Section 4-b of P.D. 1643 the PNRC shall be exempt from the payment of all duties, taxes, fees and other charges, and in its benefits and fund raising drives all provisions of law to the contrary notwithstanding." Based on the foregoing, you request a ruling confirming the tax exemption of the proceeds to be generated from the aforesaid carnival. In reply, please be informed that the proceeds to be derived by the Philippine National Red Cross (PNRC) from the "Big Bang Sa Alabang" carnival as part of its annual fund raising campaign authorized under Presidential Proclamation No. 12, are not subject to income and business taxes. Very truly yours, (SGD.) JOSE U. ONG Commissioner