BIR Ruling No. 159-15

May 6, 2015 BIR RULING NO. 159-15 Section 30 (E) of the Tax Code of 1997; BIR Ruling No. 140-14 Samaritan's Purse (Philippines), Inc. Ktrust Commodities Area 4, Maharlika Highway Brgy. 95-A Caibaan, Tacloban City Attention: Jacob Alexander Mckain Finance Manager Gentlemen : This refers to your letter dated September 17, 2014, duly indorsed by Revenue Region No. 14-Tacloban City requesting for the issuance of a certificate of tax exemption enjoyed by non-stock corporation or association organized and operated exclusively for charitable purposes under Section 30 (E) of the Tax Code of 1997, as amended. It is represented that Samaritan's Purse, a foreign corporation organized and existing under the laws of North Carolina, U.S.A., was duly licensed to establish its branch office in the Philippines; that it is registered with the Securities and Exchange Commission (SEC) under License No. FN201401911 under the name Samaritan's Purse (Philippines), Inc. (TIN 008-702-808-000); and that the purpose for which it intends to pursue in the transaction of its business in the Philippines, is to provide spiritual and physical aid to victims of war, natural disasters, poverty and famine in the Philippines. In reply, please be informed that pursuant to the last paragraph of Section 5 (a) of Revenue Memorandum Order (RMO) No. 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 Samaritan's Purse (Philippines), Inc. 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. (BIR Ruling No. 140-2014 dated May 23, 2014) Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue