Whether the Proceeds Generated Out of a Movie Benefit Show be Exempt from Income Tax

May 25, 1992 BIR RULING NO. 157-92 29 (h) 079-90 157-92 The In-Christ Thrust For University Students Foundation, Inc. Parish Office, Delaney Hall U.P. Diliman, Quezon City Attention: Mr . Paul Philip T . Sugay Logistics Head Gentlemen : This refers to your letter dated April 8, 1992 stating that the University of the Philippines In-Christ Thrust For University Students (UP-ICTUS) Foundation, Inc. is a non-profit and non-stock corporation duly registered with the Securities and Exchange Commission; that one of the group's major undertakings is granting scholarships to deserving select number of students of underprivileged status; that in order to maintain these scholarship grants, the group conducts fund raising projects; that the group sponsored a movie "Little Man Tate" as its major fund raising project for the school year which was shown at the Greenhills Theater last January 28, 1992; and that all the proceeds received from this movie will be used for the education of the foundation's scholars. Based on the foregoing, you request for a ruling that the proceeds generated out of the above-mentioned movie benefit show be exempt from income tax. In reply, please be informed that the proceeds derived by the UP-ICTUS, Foundation, Inc. in connection with the holding of the abovesaid movie benefit show "Little Man Tate" which will be used for the benefit of its scholars, are not subject to income tax. Such income, however, should be declared in the annual information return to be filed by your organization on or before April 15, 1993. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue