Center for Philippine Futuristics

June 30, 2009 BIR RULING [NSNP-(S30E-077) 406-09] Sec. 30; S-30-012-07 Center for Philippine Futuristics Cityland Herrera Tower 98 V. A. Rufino Street, Makati City Attention: Mr. Gil A. Santos President Gentlemen : This refers to your letter dated November 28, 2008, wherein you requested that a Tax Exemption Certificate be issued in your favor pursuant to Section 30 (E) of the National Internal Revenue Code of 1997 (NIRC). CDTHSI Documents submitted to this Office disclosed that Center for Philippine Futuristics, with Taxpayer's Identification No. 006-604-531, is a non-stock, non-profit domestic corporation registered with the Securities and Exchange Commission under SEC Registration No. CN 200700653 dated January 17, 2007; and that among the purposes for which Center for Philippine Futuristics was incorporated are the following: 1. To generate, organize and coordinate the various activities in the field of futuristics; 2. To contribute to general public awareness of the future and the importance of its study without advancing nor advocating particular ideologies or involvement in political activities; and 3. To act as databank and clearing house for various futuristics-related inputs. In reply, please be informed that this Office cannot yet issue the requested ruling/certificate of tax exemption. It has to prove by actual operation for at least three (3) years that it is really an organization/association exempt from income tax under Section 30 of the Tax Code of 1997, as amended. It shall file the necessary annual information return instead of an income tax return on or before the 15th day of the fourth month following the start of its operation as an exempt organization as required under Section 24 of Revenue Regulations No. 2 ( Collector vs. Sinco, G.R. L-9276 dated 23 October 1956). Based on such information return, we shall conduct the necessary investigation on its activities undertaken during the period. The determination letter of exemption shall thereafter be issued depending upon the result of our investigation. However, Center for Philippine Futuristics shall be subject to the corresponding internal revenue taxes imposed under the Tax Code of 1997, as amended, on income derived from any of its properties, real or personal, or activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. Likewise, interest income from currency bank deposits and yield or any other monetary benefit from deposit instruments and from trust funds and similar arrangements, and royalties derived from sources within the Philippines are subject to 20% final withholding tax; provided, however, that the interest income you derive from a depository bank under the expanded foreign currency deposit system shall be subject to a final withholding tax of 7 1/2% pursuant to Section 27 (D) (1) in relation to Section 57 (A) of the Tax Code of 1997, as amended. Moreover, you are required to file on or before the 15th day of the fourth month following the end of your accounting period Profit and Loss Statement and Balance Sheet with Annual Information Return under oath, stating your gross income and expenses incurred during the preceding period and a certificate showing that there has not been any change in your By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. EScHDA It should be understood that Center for Philippine Futuristics shall be constituted as a withholding agent for the government if it acts as an employer and any of its employees receives compensation income subject to withholding tax, or if it makes payments to individuals or corporations subject to the withholding tax provided for in Section 57 of the Tax Code of 1997, as amended. Finally, its books of accounts and other pertinent records shall be subject to periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it has complied with the conditions under which it may be granted tax exemption or tax incentives or it has paid its tax liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended. This ruling is being issued on the basis of the foregoing facts as presented. 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