Payment of Compensating Tax by a Religious Organization on the Donation from Abroad of Fish Protein Concentrate

December 23, 1981 BIR RULING NO. 276-81 204-00 000-00 276-81 Norwegian Missionary Alliance 158 Mother Ignacia Avenue Quezon City Attention: Mr . Trygve Bjorkas Director Gentlemen : This refers to your letter dated December 9, 1981 requesting information as to the tax consequence of the donation to you of Fish Protein Concentrate from abroad for humanitarian assistance to the depressed families in Metro Manila. cdtech It is represented that you are a non-stock and non-profit religious foreign corporation organized and existing under the laws of Norway but operating and providing in the Philippines evangelical, scholarships, medical, emergency and relief services; that you are authorized by the Securities and Exchange Commission to do business in the Philippines under and by virtue of Section 68 of the Corporation Law (Act No. 1459); that you receive support in the form of donations from groups of Norwegians connected to the Mission for your work in the Philippines; and that you received a donation from abroad of Fish Protein Concentrate intended for free distribution to indigent families, and to the local health centers of the Ministry of Health and feeding centers of the Ministry of Social Services. In reply, I have the honor to inform you that Section 204 of the Tax Code, as amended by P.D. No. 1457 enumerates the articles which are not subject to compensating tax and those imported and/or received from abroad by non-profit religious organizations are not included in said enumeration. Accordingly, even assuming that you are a religious organization, the above shipment of Fish Protein Concentrate is subject to compensating tax. You are therefore, urge to pay the 10% compensating tax on said fish protein concentrate based on the total landed cost thereof, prescribed in Section 204, in relation to Section 199, both of the Tax Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner