Tax Exemption Granted to La Sallian Educational Innovators Foundation, Inc.

August 23, 1988 BIR RULING NO. 408-88 24 176-88 408-88 000-00 Gentlemen : This refers to your letter dated May 31, 1988 requesting exemption from the 10% tax on its income as a private educational institution prescribed under Section 24(a) of a Tax Code, as amended by the Executive Order No. 37; the 20% tax on its interest and/or yield on deposits; and the compensating tax on its importation of books and other educational materials and equipment to be actually, directed and exclusively used for its educational purposes. cdtech In reply thereto, I have the honor to inform you that paragraph 3, Section 4, Article XIV of the 1987 Constitution provides, viz: "(3) All revenues and assets of non-stocks, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties . . ." The aforementioned Constitution was ratified in 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 La Sallian Educational Innovators Foundation, Inc. being a non-stock, non-profit institution is exempt from taxes e.g., 10% tax on its income as educational institution; 20% withholding tax on its interest income and/or yield on deposit substitute instruments and interest on its savings and time deposits; customs duties and value-added tax on the importation of books and other educational materials and equipment to be actually, directly and exclusively used for educational purposes. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner