Tax Liability of a Private Educational Institution

May 14, 1959 BIR RULING NO. 261-59 The Executive Secretary Capitol City College 226 Espaa Extension, Quezon City S i r : With reference to your letter dated February 10, 1959, I have the honor to inform you that a private educational institution is liable for the payment of income tax on its total net income at the rate of ten per centum, pursuant to Section 24 of the National Internal Revenue Code, as amended. It is also liable for the payment of the basic and additional residence taxes. (Section 2, Commonwealth Act No. 465, as amended, otherwise known as the Residence Tax Law). However, as an educational institution, it is not subject to any internal revenue business tax, unless it is engaged in other business activities which are not educational in nature. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue