Exemption of Harris Memorial College Development Center for Women, Inc. from Income Tax and the 20% Withholding Tax on Its Interest Income

October 16, 1987 BIR RULING NO. 316-87 24 000-00 316-87 Gentlemen : This refers to your letter dated February 26, 1987 requesting exemption of your client, the Harris Memorial College Development Center for Women, Inc. from income tax and the 20% withholding tax on the interest income of its Scholarship and Endowment Fund and Pension Fund. In reply thereto, I have the honor to inform you that par. 3, Sec. 4, Art. XIV of the 1987 Constitution provides, viz: "(3) All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties. . . ." The aforementioned constitution was ratified at a plebiscite held for the purpose on February 2, 1987. Accordingly, the tax exemption privilege of non-stock, non-profit educational institutions took effect as of said date. Such being the case, the Harris Memorial College Development Center for Women, Inc. being a non-stock, non-profit, philanthropic and educational institution is exempt from taxes and duties on all its revenues and assets used actually, directly and exclusively for educational purposes as of February 2, 1987. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner