St. Stephen's High School Faculty & Staff Welfare Fund Foundation, Inc.

May 25, 2009 BIR RULING [NSNP-(S30C-013) 349-09] Section 30; BIR Ruling No. S30-080-2007 St. Stephen's High School Faculty & Staff Welfare Fund Foundation, Inc. 1267 G. Masangkay St. Sta. Cruz, Manila Attention: Mr. Cristino Lim President Gentlemen : This refers to your letter dated April 14, 2009 requesting for tax exemption. Documentary evidence submitted disclosed that St. Stephen's High School Faculty & Staff Welfare Fund Foundation, Inc., with Taxpayer Identification No. 004-574-042-000 is a non-stock, non-profit beneficiary foundation registered with the Securities and Exchange Commission (SEC) under SEC Registration No. ANO95-04689 dated December 21, 1995. Its purposes are as follows: "To augment the income of faculty and staff of St. Stephen's High School (hereinafter referred to as the SCHOOL); by assisting the faculty and staff of the SCHOOL for their medical needs, hospitalization assistance, accident/death compensation, calamity assistance, etc.; To assist the faculty and staff of the SCHOOL who will pursue professional advancement, or who has contributed to the upgrading of the standards of the SCHOOL; To seek ways and means to encourage and take care of the needs of faculty and staff of the SCHOOL; . . ." In reply, please be informed that under Section 30 (C) of the Tax Code of 1997, as amended, a non-stock corporation or association organized and operated exclusively for the benefit of the members is exempt from income taxation. HTScEI Accordingly, as a non-stock, non-profit beneficiary organization, St. Stephen's High School Faculty & Staff Welfare Fund Foundation, Inc., therefore, is exempt from tax on all revenues derived in pursuance of its purpose as a beneficiary organization and used actually, directly and exclusively for the aforesaid purpose. However, it is subject to internal revenue taxes on income from other activities the conduct of which is not related to the exercise or performance of its purposes or functions. Moreover it is subject to the corresponding taxes imposed under the Tax Code of 1997, as amended, on its income derived from any of its properties, real or personal, regardless of the disposition thereof, which income should be returned for taxation. Likewise, interest income from its currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements received by the organization, and royalties derived from sources within the Philippines are subject to the 20% final withholding tax: provided, however, that interest income derived by it from a depository bank under the expanded foreign currency deposit system shall be subject to 7-1/2% final withholding tax pursuant to Section 28 (A) (7) (a), in relation to Section 57 (A), both of the Tax Code of 1997, as amended. Moreover, as a tax-exempt organization, St. Stephen's High School Faculty & Staff Welfare Fund Foundation, Inc. should file an annual information return on or before the 15th day of the 4th month following the end of its taxable year. Under Section 235 of the Tax Code of 1997, as amended, any provision of existing general and special law to the contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt organizations or grantees of tax incentives shall be subject to examination by the BIR for purposes of ascertaining compliance with the conditions under which they have been granted tax exemptions or tax incentives, and their tax liabilities, if any. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service