Exemption from the Filing of Income Tax Return and Paying the Income Tax

December 13, 1960 BIR RULING NO. 534-60 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589, Manila Gentlemen : Reference is made to your letter dated September 29, 1959, requesting for and in behalf of your client, the Art Association of the Philippines, Inc., exemption from the filing of income tax return and paying the income tax. In support of said request, and pursuant to section 24 of the Income Tax Regulations, you submitted an affidavit of Mr. Galo B. Ocampo, President of the corporation, by-laws and latest financial statements of the corporation. In answer thereto, I have the honor to inform you that, based on the facts appearing in the documents submitted by you and it having been found upon investigation that the Art Association of the Philippines, Inc. is a non-stock, non-profit organization whose income derived from donations, membership fees and dues, and patron and sales fees does not inure to the benefit of any member or private individual, this Office is of the opinion and so holds that your client is exempt from the filing of income tax return, as well as paying the tax, pursuant to the exempting provisions of section 27(f) of the Tax Code, in relation to section 24 of the Income Tax Regulations, provided that the organization does not engage in a regular business of a kind ordinarily carried on for profit. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue