Exemption from Tax on the Proceeds of the Concert of a Non-stock, Non-profit Organization

September 17, 1991 BIR RULING NO. 193-91 29 (h) 44-91 193-91 M a d a m : This refers to your letter dated July 31, 1991 requesting in behalf of the Association of TOWNS Awardees, Inc. exemption from tax on the proceeds of its up-coming concert in October 1991. It is represented that the Association of TOWNS Awardees, Inc. is a non-stock, non-profit corporation with purposes among others, to uphold the ideals and noble objectives which gave birth to the search for "The Outstanding Women in the Nation's Service" (TOWNS), a project initiated by Lions District 301-A; to undertake programs, projects and activities aimed at enhancing the status of Filipino women and recognizing their contributions to nation-building; to preserve the integrity and high standards in the selection of TOWNS awardees; and, to establish linkages with national and international women's groups; that it is made up of women who have received The Outstanding Women In The Nation's Service (TOWNS) award; that it is embarking on the production of a concert featuring Celeste Legaspi (a TOWNS member) and the APO Hiking Society this coming October 3 and 4, 1991 at the Plenary Session Hall of the Philippine International Convention Center; that the proceeds from the program will be used to fund its community skills training program to help uplift underprivileged women in society to teach them specific vocational and entrepreneurial skills with particular concentration on moral values formation. In reply, please be informed that the proceeds to be derived by the Association of TOWNS Awardees, Inc. in connection with the holding of the concert are not subject to income and business taxes. Such income, however, should be declared in the annual information return to be filed by the tax-exempt organization which is the Association of TOWNS Awardees, Inc. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge