Exemption Granted to National Philharmonic Society

December 19, 1990 BIR RULING NO. 238-90 21 (c) (1) 238-90 Gentlemen : This refers to your letter dated September 12, 1990 requesting a ruling that the proceeds of the raffle draw you intend to hold sometime in February, 1991 be exempted from tax. aisadc In reply, I have the honor to inform you that since the National Philharmonic Society is a cultural organization, the proceeds which will be derived by it in connection with its raffle-fund raising shall be exempt from income tax pursuant to Section 26 (e) of the Tax Code. It is also exempt from VAT because its fund raising activity consisting of the selling of raffle tickets is not a business activity contemplated under Section 99 of the Tax Code. However, prizes in excess of P3,000.00 shall be taxable to the individual winner, citizen or resident alien, and subject to the final withholding tax at the rate of 20% pursuant to Section 21 (c)(2) of the Tax Code in relation to Section 50 (a) of the same Code. Your Society should remit to the BIR the withheld taxes. The names and addresses of the raffle winners, including those winning less than P3,000.00 should also be submitted to this Office. cdta Very truly yours, (SGD.) VICTOR A. DEOFERIO, JR. Deputy Commissioner