Bureau of Local Government Finance Opinion

April 25, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred, thru the OIC-Regional Director for Local Government Finance, Department of Finance, Region VII, 3rd Floor, BF Building, N. Escario Street, Kamputhaw, Cebu City, to the OIC-City Assessor of Mandaue City, the within letter dated March 26, 2011 of Hon. Gwendolyn Pang , Secretary General, Philippine National Red Cross (PNRC) , claiming exemption from the payment of real property tax on all PNRC's properties located at Jagobiao, Mandaue City. PNRC is claiming exemption from realty tax by virtue of R.A. No. 10072 otherwise known as the "Philippine Red Cross Act of 2009" signed by the then President of the Republic of the Philippines, Her Excellency Gloria Macapagal-Arroyo. 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 or 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 "Philippine Red Cross Act of 2009" 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. As such, all previous rulings, opinions or decisions of this Bureau inconsistent with this ruling are hereby reversed and/or modified accordingly. cCaEDA Please be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director