Tax Exemption Granted to Marist College, Inc.

July 28, 1988 BIR RULING NO. 359-88 24 93-88 359-88 Gentlemen : This refers to your letter dated May 27, 1988 requesting a certificate of tax exemption in your favor pursuant to Section 4(3), Article XIV of the 1987 Constitution. It is represented that you are a non-stock, non-profit educational institution, operated exclusively for educational purposes, no part of the income of which inures to the benefit of any private stockholder or individual; and that your income from operations are actually, directly and exclusively used for educational purposes. In reply, I have the honor to inform you that paragraph 3, Section 4; Article XIV of the 1987 Constitution provides, viz: "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. Non stock, non-profit educational institutions are exempt from tax on all revenues derived in pursuance of its purposes as an educational institution and used actually, directly and exclusively for educational purposes. The exemption therein contemplated refers to internal revenue taxes and customs duties, in appropriate cases, imposed by the national government on all revenues and assets of non-stock, non-profit educational institutions used actually, directly and exclusively for educational purposes . They shall, however, be subject to internal revenue taxes on income from trade, business or other activity the conduct of which is not related to the exercise or performance by such educational institution of its educational purpose or function. (Sec. 2, Finance Department Order No. 137-87) Such being the case, the Marist College, Inc. being a non-stock, non-profit 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.) BIENVENIDO A. TAN, JR. Commissioner