Real Property Tax Exemption of the Philippine National Red Cross (PNRC) Pursuant to Republic Act No. 10072 Otherwise Known as the "Philippine Red Cross Act of 2009"

August 1, 2011 BLGF MEMORANDUM CIRCULAR NO. 017-11 TO : All Regional Directors for Local Government Finance; Provincial, City and Municipal Assessors and Treasurers; and Others Concerned SUBJECT : Real Property Tax Exemption of the Philippine National Red Cross (PNRC) Pursuant to Repu blic Act No. 10072 Otherwise Known as the "Philippine R ed Cross Act of 2009" For the information and guidance of all concerned and in response to the letter dated May 2, 2011 of Hon. JUAN MIGUEL F. ZUBIRI, one of the principal authors of R.A. No. 10072 and incumbent governor of PNRC, in the light of numerous reports received by his office that some Local Government Units (LGUs) have been assessing the real properties of PNRC despite the exemption granted under R.A. No. 10072, this Circular is being issued for all concerned. Quoted below are the pertinent portions of the opinion/ruling rendered by this Bureau embodied under its 1st Indorsement dated April 25, 2011, in view of Republic Act No. 10072 otherwise known as the "Philippine Red Cross Act of 2009." "Section 5 of the said Act provides: 'xxx xxx xxx '(c) Be exempt from payment of all direct and indirect taxes , all provisions of law to the contrary notwithstanding, including value-added tax (VAT), fees and other charges of all kinds on all income from its operations, including the use, lease of sale of its real property , and provision of services. The Philippine Red Cross shall also be exempt from direct and indirect taxes, including VAT, duties, fees and other charges on importations and purchases for its exclusive use. (Emphasis supplied) 'xxx xxx xxx 'Finally, the Philippine Red Cross shall be exempt from the payment of real property taxes on all real properties owned by it; and 'xxx xxx xxx.' 'In this connection, and pursuant to the clear and unequivocal provision of the "Phili ppine Red Cross Act of 20 09" granted by Congress to PNRC, this Bureau believes that the real properties of said organization, wherever situated, regardless of its use, shall be exempt from the payment of real property tax." Likewise, all previous rulings, opinions or decisions of this Bureau inconsistent with this Circular are hereby reversed and/or modified accordingly. The Provincial Assessors and Treasurers are hereby instructed to disseminate the contents of this Circular, including the attachments, to the Municipal Assessors and Treasurers within their respective jurisdiction. DHTCaI Please be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director ATTACHMENT BLGF Opinion April 25, 2011