Income and Business Taxes Exemption on the Proceeds Derived from the Exhibition Games of the Harlem Ambassadors

July 19, 1988 BIR RULING NO. 338-88 30-h 305-87 338-88 Gentlemen : In reply to your letter dated June 23, 1988, please be informed that the proceeds to be derived by you from the two exhibition games of the Harlem Ambassadors (formerly Harlem Globetrotters) at the Araneta Coliseum on August 7 and 8, 1988 as part of your fund raising activities in connection with your preparation for the Olympic Games in Seoul this September and the Southeast Asia Games next year are not subject to income and business taxes. Moreover, gifts, bequests, donations and/or contributions to you during the period of your national fund campaign from June 1, 1988 to May 30, 1989 shall be exempt from the donor's and estate taxes and shall be deductible in full in computing the taxable net income of the donor provided that not more than thirty per centum of said gifts and bequests shall be used by you for administration purposes pursuant to Proclamation No. 263 in relation to Presidential Decree No. 507. However, the fees of the players who are non-resident aliens not engaged in trade or business in the Philippines (their stay in the Philippines is for 180 days or less), shall be subject to a tax of 30% on the total amount thereof, pursuant to Section 22(b) of the Tax Code, as amended. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner