Tax Exemption Granted to AISLI

August 20, 1990 BIR RULING NO. 159-90 26 (f) 99 29-80 183-81 159-90 Gentlemen : This refers to your letter dated March 2, 1990 stating that in a letter dated June 3, 1987, the BIR ruled that the Association of International Shipping Lines, Inc. (AISLI), a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission falls within the purview of a corporation organized and operated as a business league under then Section 27 (f) of the Tax Code, as amended; that as such, it is exempt from the payment of income tax in respect of income received by it as such organization and therefore, need not file an income tax return concerning such income; that pursuant to its Articles of Incorporation and By-Laws, AISLI performs and/or will perform exclusively to its members such business league industry related services as cargo measuring, container monitoring, computerization of all date relating to the maritime industry, gathering and dissemination of all statistical data relating or useful to the maritime industry, study and research, radio communication with and among the members, secretarial services and such other services for the benefit of and made available exclusively to the members which may be authorized under the Articles of Incorporation and By-Laws of AISLI; that the expenses of maintaining the Association including the maintenance and acquisition of all facilities needed to render said services are shouldered by the members specially those benefited by said services, in the form of reimbursements, contributions, membership and secretariat dues; and that the funds, dues, assessments and receipts of AISLI are used solely and primarily for the benefit of AISLI and do not inure to the financial or pecuniary benefit of any member, elective officer, director or private individual. In connection therewith, you now request confirmation of your opinion to the effect that the reimbursement, assessments and receipts of AISLI for performing the aforementioned services exclusively to its members are exempt from the payment of income tax, value-added tax and other percentage taxes imposed under the National Internal Revenue Code. In reply thereto, please be informed that in accordance with the letter of this Office dated June 3, 1987, AISLI is exempt from the payment of income tax and the filing of the corresponding income tax return as a business league under then Section 27 (f) [now Section 26 (f)] of the Tax Code, as amended. However, its income of whatever kind and character from any of its properties, real or personal, or from any of its activities conducted for profit, regardless of the disposition of such income shall be subject to income tax. Moreover, the aforementioned services being performed by AISLI are not among those subject to the other percentage taxes imposed under Title V also of the Tax Code, as amended. cd Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner