Health Partners Condo Clinics Corporation

September 18, 2009 BIR RULING [NSNP-(S30E-121) 597-09] Sec. 30; S-30-012-07 Health Partners Condo Clinics Corporation Benigno Aquino Avenue Brgy., San Rafael Mandurriao Iloilo City Attention: Mr. Manuel I. Posecion, M.D. President Gentlemen : This refers to your letter dated May 9, 2007 requesting for exemption from the payment of income tax and filing of the corresponding income tax return under Section 30 of the Tax Code of 1997, as amended. Documents submitted to this Office disclosed that Health Partners Condo Clinics Corporation (TIN 006-462-407) is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission under SEC Registration No. CN200630027 dated October 30, 2006; and that the purposes for which Health Partners Condo Clinics Corporation was organized are the following: 1. To manage, operate and control, supervise and oversee the said condominium project in accordance with the Master Deed with Declaration of Restrictions, this Articles of incorporation and other documents and instruments of the organization as may be adopted and approved by the Board of Directors. 2. To manage, operate and control, supervise and oversee the said condominium project in accordance with the Master Deed with Declaration of Restrictions, this Articles of Incorporation and other documents and instruments of the organization as may be adopted and approved by the Board of Directors. In reply, please be informed that this Office cannot yet issue the requested ruling/certificate of tax exemption. You have to prove by actual operation for at least three (3) years that you are really an organization/association exempt from income tax under Section 30 of the Tax Code of 1997, as amended. You can 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 your 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 your activities undertaken during the period. The letter of exemption shall thereafter be issued depending upon the result of our investigation. cASEDC However, Health Partners Condo Clinics Corporation 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. It should be understood that Health Partners Condo Clinics Corporation 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, your 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 you have been complying with the conditions under which you may be granted tax exemption or tax incentives and 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