Application for Registration as Donee Institution Without Accreditation Certificate

December 9, 1999 BIR RULING NO. 196-99 RR 13-98-000-00-196-99 Confederation of Government Employees Organization, Inc. (COGEO) Level 7, GSIS Bldg., Roxas Boulevard, Pasay City Attention: Mr . Florino O . Ibanez Secretary General Gentlemen : This refers to your letters dated July 20 and September 21, 1999 requesting for the approval of your application for registration as a donee institution even without the requisite certificate of accreditation from the Philippine Council for NGO Certification (PCNC). It is represented that in 1988, you filed with the then Government Tax Exempt Corporation Division, an application for registration as a donee institution under the provisions of then Batas Pambansa Blg. 45 as implemented by Revenue Regulations No. 1-81 as amended by Revenue Regulations No. 1-82; that you were required to cause the amendment of your Articles of Incorporation and to submit duly audited Financial Statements for 1985 and 1986; and that your amended Articles of Incorporation which was approved by the Securities and Exchange Commission on March 31, 1999 and copies of Financial Statements for 1997 and 1998 were submitted to this Office only on July 20, 1999. In reply, please be informed that Section 2 (b), (e) and (f) of Revenue Regulations No. 13.-98 provides as follows: "Sec. 2. Accreditation of non-stock, non-profit corporations/NGO's by the Accrediting Entity "(a) . . . "(b) Newly organized and existing non-stock, non-profit corporations; and NGO's shall apply with the Accrediting Entity for accreditation and submit to a process examination and evaluation . . . "(c) . . . "(d) . . . "(e) Existing non-stock, non-profit corporations/NGO's which have qualified as donee institution under BIR-NEDA Regulations 1-81, as amended, shall have three (3) years beginning the effectivity of these rules and regulations within which to secure a Certificate of Accreditation from the Accrediting Entity. Failure by the said non-stock, non-profit corporations/NGO's to secure accreditation within the three year period shall be a ground for the cancellation by the BIR of their Certificates of Registration as a qualified-donee institutions: Provided, however , that donations and contributions to the said non-stock, non-profit corporations/NGO's during the three-year period shall still be allowed as deductible expense on the part of the donors subject to the provisions of Sec. 4 of these Regulations: Provided, further, That after the three year period, only donations and contributions to non-stock, non-profit corporations/NGO's which have been accredited under these Regulations, shall be allowed as deductible expense on the part of the donors. LibLex "(f) The Accrediting Entity shall issue a Certificate of Accreditation to a non-stock, non-profit corporation/NGO upon determination that it meets the criteria for accreditation; Provided that the Certificate of Accreditation shall be valid for a maximum period of five (5) years for existing non-stock, non-profit corporations/NGO's and three (3) years for newly-organized non-stock, non-profit corporations NGO's. xxx xxx xxx Such being the case, newly organized and existing non-stock, non-profit corporations and NGO's shall apply for accreditation and submit to a process of examination and evaluation from the Philippine Council for NGO Certification (PCNC) as a pre-requisite for their registration with the BIR as qualified-donee institutions under Section 34(H)(1) and (2)(c) of the Tax Code of 1997. Thus, your request for registration as a donee institution under Section 34(H)(1) and (2)(c) of the Tax Code of 1997 even without the requisite certification from the PCNC is hereby denied for lack of legal basis. cdlex Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue