BIR Ruling [UN-033-96]

January 24, 1996 BIR RULING [UN-033-96] St. Benedict College San Beda Alabang Alabang Hills Village, Muntinlupa, Metro Manila Attention: Rev . Father Tarcisio Ma . H . Narciso, OSB Gentlemen : This refers to your letter dated January 23, 1996 requesting that the prizes of the Bingo Raffle of St. Benedict College, Alabang Hills Village, Alabang, Muntinlupa to be held on January 27, 1996 be exempt from the 20% final withholding tax. cd It is represented that the entire proceeds of the Bingo Raffle will go to the college scholarships program and the construction of the college building; and that the taxes for the major prize have been indirectly paid when you purchased them from Toyota Shaw. In reply thereto, please be informed that your request cannot be granted for lack of legal basis. Prizes (except prizes amounting to P3,000 or less which shall be subject to tax under paragraph (a) of Section 21 of the Tax Code, as amended and other winnings (except Philippine Charity Sweepstakes Winnings) shall be subject to the 20% final withholding tax pursuant to Section 21(c)(1) in relation to Section 50(a) both of the Tax Code, as amended. However, if the recipient of the prize is a corporation, the same shall be subject to the 35% corporate income tax pursuant to Section 24 of the Tax Code, as amended. (BIR Ruling No. 244-93 dated June 10, 1993) cdtech Very truly yours, ALICIA P. CLEMENO Asst. Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)