Global Gender Advocacy for Dev't. of Sustainable Community Health Education Livelihood

May 17, 2010 BIR RULING [NSNP-(S30G-004) 024-10] Sec. 30; S-30-102-2008 Global Gender Advocacy for Dev't. of Sustainable Community Health Education Livelihood Services (GGADSCHELS) INC. Attention: Dorie C. Sagales, RM/ICM President Gentlemen : This refers to your letter dated February 04, 2010 requesting for exemption from the payment of income tax, filing of the corresponding income tax return under Section 30 of the Tax Code of 1997, as amended. AacCIT Documents submitted to this Office disclosed that GGADSCHELS, Inc. is a non-stock, non-profit corporation under Section 30 of the Tax Code of 1997, as amended; that it is duly registered with the Securities and Exchange Commission under SEC Registration No. CN200911034 dated January 27, 2009 with Taxpayer Identification Number (TIN) 007-333-861; and that the purposes for which the corporation was formed are the following: 1. To encourage men and women full participation and develop global partnership for community development. 2. Promote gender and development by way of seminars, trainings, conventions and conferences. 3. Assist and participate in skills trainings, seminars for health, wellness and healing, livelihood and environmental programs and services. 4. To train concern individuals to be skillful in the practices of self-reliance through participation in trainings, seminars, conferences and conventions. 5. To raise funds, receive endowments, grants and donations or trust funds in the right execution of its lawful assistance programs. 6. To nurture the community to enable them to become productive individuals to maintain and sustain livelihood, health and wellness programs to increase family income. 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 (G) 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 April 15 of each year following the start of its operation as an exempt organization as required under Section 24 of Revenue Regulations No. 2. Based on such information return, the BIR Revenue District Office which has jurisdiction over GGADSCHELS, Inc. shall conduct the necessary investigation on its activities undertaken during the period. The letter of exemption shall thereafter be issued depending upon the result of our investigation. DaHcAS However, please be reminded that pursuant to Section 30 of the NIRC as amended, GGADSCHELS, Inc. shall be subject to the corresponding internal revenue taxes on the income of whatever kind and character from any of its properties real or personal, or from any of its activities conducted for profit regardless of the disposition made of such income. Likewise, in accordance with NIRC Section 27 (D) (1) in relation to Section 57 (A), as amended, GGADSCHELS, Inc., shall be subject to a final tax at the rate of twenty percent (20%) imposed upon the amount of interest on currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements received by domestic corporation, and royalties, derived from sources within the Philippines: Provided, however, that interest income it derived from a depository bank under the expanded foreign currency deposit system shall be subject to a final income tax rate of seven and one-half percent (7 1/2%) of such interest income. Moreover, GGADSCHELS, Inc. is required to file on or before the 15th day of the fourth month following the close of its accounting period a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating the gross income and expenses incurred during a given taxable year with a certificate showing that there has not been any change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. It should be understood that GGADSCHELS, Inc. 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 Chapter XIII and Section 57 of the Tax Code of 1997, as amended. (BIR Ruling DA-S-30-102-2008 dated June 11, 2008) Finally, GGADSCHELS, Inc.'s 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 the conditions under which it may be granted tax exemption or tax incentives and/or 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. IcaEDC Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal and Inspection Group