Bureau of Local Government Finance Opinion

March 25, 2013 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Rimando Eliecer S. Raa, Jr. President/Chairman of the Board Cradle of Learners (Inclusive School for Individualized Education), Inc. 19 Mayaman Street, UP Village Quezon City Sir : This refers to your letter dated February 13, 2013 requesting exemption of Cradle of Learners (Inclusive School for Individualized Education), Inc. (CLI) from government taxes. aTDcAH It is represented that CLI is a non-stock, non-profit institution which was founded on January, 2006. CLI is located at 19 Mayaman St., UP Village, Quezon City. Its commitment is to educate the young especially children with special needs. CLI offers Pre-School, Elementary and one (1) multi-level in High School. Most of the students enrolled are those with special needs. The purposes of Cradle of Learners as stated in the Articles of Incorporation are as follows: a. To establish and operate an educational institution or learning center which shall provide courses of study in Elementary education subject to the laws of the Philippines. b. To receive tuition and miscellaneous fees, accept donations, endowments, grants, legacies and instruments/devices conformably with existing applicable statutes. In this connection, please be informed that this Bureau has made an inquiry with the Department of Justice (DOJ) for the proper interpretation of Section 193 of the Local Government Code of 1991 particularly the phrase " non-stock non-profit hospitals and educational institution ". Such inquiry was prompted by the different interpretations of the provision, specifically on whether the phrase "non-stock non-profit" refers only to "hospitals" in which case educational institutions will outright be exempt from local taxes regardless of the status of their creation. Another view submitted for opinion is whether a "non-stock, non-profit" entity has to be a hospital and at the same time an educational institution to be able to avail of such incentives provided under the pertinent provisions of the Local Government Code (LGC) of 1991 and the 1987 Constitutions. Rest assured, however, that as soon as the needed opinion of the DOJ is received, your concern will be acted accordingly. aSCHIT Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director