CREBA Social Housing Foundation, Inc.

November 18, 2009 BIR RULING [NSNP-(S30G-082) 721-09] Section 30 (G);NSNP(S30h-058)289-2008 CREBA Social Housing Foundation, Inc. 3rd Floor CREBA Center, Don Alejandro Roces Avenue Cor. South "A" St.,Quezon City, Philippines Attention: Ms. Techie P. Bautista President Gentlemen : This refers to your letter dated September 11, 2009 requesting exemption from taxes as a non-stock, non-profit organization pursuant to Section 30 of the Tax Code of 1997, as amended. HICEca Documentary evidence submitted disclosed that the CREBA Social Housing Foundation, Inc. with TIN 039-004-498-371 is a non-stock, non-profit corporation registered with the Securities and Exchange Commission under SEC Registration No. AN092-000670 dated June 30, 1993; and that the purposes for which the corporation was organized, among others are as follows, viz. : 1. To create, establish and provide an institution which will initiate, promote, sponsor, assist, pursue, support and conduct programs, projects and/or studies geared towards research, development and improvement in the various fields of social housing and real estate development, management and other related sciences and/or programs involving any or all of, but not limited to, the following: a. To grant scholarships and professorial chairs in the various fields, phases and aspects of social housing and real estate development; b. To conduct or underwrite research and development programs in the pursuit of knowledge and technological advancement in the various fields of social housing and real estate development; c. To provide assistance to qualified individuals or entities to qualified individuals who propose to do or are doing research word in social housing and real estate development, management practices and procedures, including the giving or extension of grants, donations in cash, property, or services. Based on the foregoing, this Office is of the opinion and so holds that the CREBA Social Housing Foundation, Inc. falls within the purview of a non-stock, non-profit organization as contemplated under Section 30 (G) of the Tax Code of 1997. Accordingly, it is exempt from the payment of income tax on income received by it as such organization, and therefore, need not file an income tax return. TIcAaH However, it is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1997 on its income derived from any of its properties, real or personal, or any 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 substitute instruments and from trust funds and similar arrangements, and royalties derived from sources within the Philippines are subject to the 20% final withholding tax; provided, however, that interest income derived from 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 27 (D) (1) in relation to Section 57 (A),both of the Tax Code of 1997. Moreover, it is required to file on or before April 15 of each year a profit and loss statement and balance sheet with the annual information return under oath, stating its gross income and expenses incurred during the year and 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 resources and disposition of income. It should be understood that the said exempt non-stock, non-profit organization shall be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation income subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the Tax Code of 1997, as implemented by Revenue Regulations No. 2-98, or if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the Tax Code of 1997, also as implemented by Revenue Regulations No. 2-98. It is of course understood that its books of accounts and other pertinent records shall be subject to periodic examination by revenue enforcement officers of this Bureau for the purposes of ascertaining whether it has been complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liabilities, if any, pursuant to Section 235 of the Tax Code of 1997. 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. DcTSHa Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service