Tax Exemption on the Importation of Donated Instruments/Equipment, Paper and Other Religious Educational Materials

August 10, 1992 BIR RULING NO. 217-92 103 (u) 185-92 217-92 Head, Media For Evangelization And Development, Inc. 4427 Int. Old Sta. Mesa Manila S i r : This refers to your letter dated June 19, 1992 requesting exemption from the value-added tax on the importation of various instruments/equipment, paper and other religious educational materials donated to the Foundation. llcd Documents submitted to this Office show that you are a non-stock and non-profit corporation sole Foundation engaged in the publication, printing and distribution of religious and educational printed materials to various religious and educational institutions; that the Foundation is registered as a donee institution in accordance with the provisions of BIR-NEDA Regulations No. 1-81 effective April 30, 1981 per Certificate of Registration No. 0524 issued by this Office on January 28, 1986; that it is also accredited by the Office of Nonformal Education of the Ministry of Education and Culture as an educational institution in the service of non-formal education; that upon the favorable recommendation of the Secretary General, UNESCO National Commission of the Philippines, you were granted by the Department of Finance in its letter dated February 28, 1992, exemption from the payment of customs duties and taxes pursuant to the provisions of Annex C(i) of the UNESCO Florence Agreement and Section 103(u) of the Tax Code, as amended by Executive Order No. 273. In connection therewith, please be informed that pursuant to Section 103(u) of the Tax Code as amended by Executive Order No. 273 and implemented by Section 9 (b) (16) of Revenue Regulations No. 5-87 dated September 1, 1987, transactions which are exempt under International Agreements to which the Philippines is a signatory, are exempt from the value-added tax. Such being the case, the aforesaid instruments/equipment, paper and other religious educational materials in the name of the Head, Media For Evangelization And Development, Inc. remains exempt from the 10% value-added tax. In other words, the exemption granted to your foundation by virtue of the UNESCO Florence Agreement is not revoked by the Value-Added Tax Law. This serves as a certification authorizing you to secure the release from customs custody your various instruments/equipment, paper and other religious educational materials without payment of the 10% value-added tax (BIR Ruling No. 041-88; 401-88). cdll Very truly yours, JOSE U. ONG Commissioner of Internal Revenue