Shipments of Religious Materials are Exempt from the Payment of Compensating Tax

October 1, 1981 BIR RULING NO. 190-81 204-00 147-81 190-81 The Bethany Baptist Church P.O. Box 2329 M a n i l a Attention: Rev . Loral D . Woosley Pastor Gentlemen : This refers to your letter dated June 8, 1981, requesting that your shipments of the religious articles, i. e. Bibles, religious books, magazines, pamphlets, tracts and other religious printed materials which are donated to you by friendly churches from the United States be exempted from the payment of compensating tax under Section 204 of the Tax Code. It is represented that you are a non-profit, religious corporation duly registered with the Securities and Exchange Commission; that you are imparting free education to the Filipino people about God, and proclaiming the Gospel of Jesus Christ in the Philippines; that friendly churches from the United States are from time to time sending you Bibles, religious books, magazines, pamphlets, tracts and other religious printed materials for free distribution to and use of your other sister churches, church preachers, teachers, members, and Sunday School and Bible School children in the fulfillment of your religious and educational ends of making God-fearing and God-honoring Filipino families. In reply, I have the honor to inform you that it appearing that the Bethany Baptist Church is a religious organization, and considering that the aforesaid shipments are religious materials for free distribution, it is the opinion of this Office as it hereby holds that said shipments of religious materials are exempt from the payment of compensating tax in accordance with the constitutional provision on the free exercise and enjoyment of religious worship. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner