Tax Exemption Granted to FEU-Dr. Nicanor Reyes Medical Foundation, Inc.

December 29, 1988 BIR RULING NO. 605-88 24 248-88 605-88 Gentlemen : This refers to your letter dated March 18, 1988 requesting exemption from the 10% tax on your income as a private educational institution prescribed under Section 24 (a) of the Tax Code, as amended by Executive Order No. 37; the 20% tax on your interest and/or yield on deposit substitute instruments an interest on your savings and time deposits; the customs duties and the compensating tax on your equipment to be actually, directly and exclusively used for your 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-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 help 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 Far Eastern University Dr. Nicanor Reyes Medical Foundation, Inc. being a non-stock, non-profit educational institution duly recognized by the government is exempt from taxes, e.g., 10% tax on its income as an educational institution; and 35% tax on its revenues from hospital operations; 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 its 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