BIR Ruling No. 310-82

November 4, 1982 BIR RULING NO. 310-82 123 (b) (1) 000-00 310-82 Kilusan Kabuhayan at Kaunlaran Agustin 1 Bldg., Emerald Avenue Pasig, Metro Manila Attention: Mr . Jose Conrado Benitez Deputy Secretary General Gentlemen : This refers to your letter dated October 22, 1982 requesting, in effect, exemption from taxes and customs duties of the donations to be made by the American Veterans of World War II, Korea and Vietnam Association (Amvets) in favor of the Ministry of Human Settlement. It is represented that the American Veterans of World War II, Korea and Vietnam Association (Amvets) thru the Ministry, specifically through the Kilusan Kabuhayan at Kaunlaran (KKK) has proposed a replication in our country of one of its more successful projects in the United States; that the Amvets as a non-profit organization receives second hand clothes and other domestic items through donations; that these donations are in turn sold at minimal cost to the more needy populace of the United States; that the Amvets is ready to initiate this project in the Philippines and is ready to donate some of their goods to us; that an initial donation of approximately 12,000 pounds of used clothing is being readied for shipment to the Philippines; and that the Technology Resource Center Foundation, Inc. (TRCFI) has been franchised to receive the donation in behalf of the Ministry of Human Settlement. aisadc In reply thereto, I have the honor to inform you that since the donee, Ministry of Human Settlement is a government agency, which is not conducted for profit, the aforementioned donation is exempt from the payment of donor's tax, pursuant to Sec. 123(b)(l) of the Tax Code, as amended. In the interest of economic development, the same may be exempted from the compensating tax by the President, upon recommendation of the NEDA, pursuant to Section 204 of the same Code. However, said shipments will be subject to the corresponding advance sales tax, if the same are subsequently sold in our country. As regards your request for exemption from customs duties, you may direct your inquiry to the Bureau of Customs which has jurisdiction over the said matter. cd Very truly yours, RUBEN B. ANCHETA Acting Commissioner