BIR Ruling No. 297-14

July 24, 2014 BIR RULING NO. 297-14 Section 34 (H), Section 101, RA 8424 Humanitarian Affairs 333/196 MOO.9, Ngongprue Banglamung, Chonburi 20150, Thailand Attention: Ruth Valorie Catabijan Global Partnership Specialist for Events Janice Leong Regional Director Gentlemen : This refers to your letter dated May 6, 2013 requesting for assistance on the tax incentives for corporate sponsors and donors of the 4th University Scholars Leadership Symposium, otherwise known as the "Manila Symposium 2013" which is organized by Humanitarian Affairs. It is represented that Humanitarian Affairs is a London-based non-profit, non-government organization that empowers young people to become global citizens with compassion for the world's poor. Its Asia Secretariat in Thailand administers the annual University Scholars Leadership Symposium. The organization is a member of the World Association of Non-governmental organizations and the World Alliance for the Citizens participation. As a social enterprise, it is incorporated under the Company Act of 1985 of the United Kingdom and is registered with the registrar of Companies in England and Wales under Registration No. 6582565. We regret to inform you that there is no provision in the National Internal Revenue Code of 1997, as amended (Tax Code) that grants any tax incentive to your corporate sponsors and donors of an event. It has been held time and again that laws granting exemption from tax are construed strictissimi juris against the taxpayer and liberally in favor of the taxing power, and he would seek to be thus privileged must justify it by words too plain to be mistaken and too categorical to be misinterpreted (Sea-Land Service, Inc. vs. Court of Appeals, et al., G.R. No. 122605, 30 April 2011) . Otherwise stated, any exemption from the payment of a tax must be clearly stated in the language of the law; it cannot be merely implied therefrom. (Davao Gulf Lumber Corp. vs. Commissioner of Internal Revenue, et al., G.R. No. 117359, 23 July 1998) Under the Tax Code, the incentives of exemption from donor's tax and the deductibility of charitable contributions are available only to persons donating to the government, certain foreign institutions or international organizations, and accredited nongovernment organizations, trust or philanthropic organization and/or research organizations registered in the Philippines. Humanitarian Affairs, being a non-resident foreign corporation and there being no provision in the Tax Code which exempts them nor is there a tax treaty invoked, we are of the opinion that no tax incentive is available to the corporate sponsors and donors of the Humanitarian Affairs-sponsored event. prcd However, it should be clarified that donations to the Humanitarian Affairs-sponsored event coursed through the event-partners ( i.e. , the United Nations, the Department of Tourism, the Commission on Higher Education, World Vision, Habitat for Humanity, and Save the Children) for the purpose of sponsoring the "Manila Symposium 2013", so long as these event-partners are qualified by the BIR as non-stock, non-profit organizations, Section 101 on the grant of exemption from donor's tax may apply. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue