Publishing Section 27 of Executive Order No. 748 of the President dated 17 March 1982

November 18, 1982 REVENUE MEMORANDUM CIRCULAR NO. 27-82 SUBJECT : Publishing Section 27 of Executive Order No. 748 of the President dated 17 March 1982 TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all concerned, quoted hereunder is Section 27 of Executive Order No. 784 dated 17 March 1982: "Sec. 27. Repealing Clause . All laws, decrees, orders, proclamations, rules, regulations, or parts thereof, which are inconsistent with any of the provisions of the Executive Order are hereby repealed or modified accordingly, Provided, however, that Sections 24, 24-a and 26 of Republic Act No. 2067, as amended, are hereby re-affirmed in respect to the Authority, its line agencies and its attached entities." casia FEATURES : Executive Order No. 784 reorganized the National Science Development Board and its agencies into a National Science and Technology Authority. By virtue of Section 27 of Executive Order No. 784, the National Science and Technology Authority is reassuming the certification functions for tax purposes of the National Science and Development Board in accordance with Sections 24 and 24-a of RA No. 2067, as amended. The certification functions refer to: (a) certification by the NSDB that such foundations and funds are dedicated to scientific pursuits (Sec. 24 of RA 2067). (b) certification of the NSDB that such articles are imported solely for scientific and technological research and development and not for barter, sale or hire (Sec. 24-a of RA 2067). Section 24 of RA No. 2067, as amended, provides, among others that all funds contributed to the support and maintenance of such foundations and their projects as well as specific research and development projects undertaken by private individuals and educational institutions, shall be tax-exempt and deductible from the donor's income tax returns, upon certification by the Board that such foundations and funds are dedicated to scientific pursuits. This restores the authority of the National Science & Development Board (now the National Science and Technology Authority) to certify whether or not the donee-institution is indeed dedicated to scientific pursuits for tax deductibility purposes. In view hereof, the registration requirements and procedures under Section 5 of BIR-NEDA Regulations No. 1-81 as amended implementing Batas Pambansa Blg. 45 are amended accordingly. It should be noted, however, that deductibility of donations shall apply only to individuals with business incomes and that fixed-income earners are not allowed such deductions as a result of the introduction of the modified gross income tax under Batas Pambansa Blg. 135. Sec. 24-a of RA No. 2067, as amended and as implemented by NSDB Policy Instructions No. 12 provides that any provision of existing laws to the contrary notwithstanding, apparatus, instruments, utensils, equipment, and materials may be imported into the Philippines, whether or not foreign exchange has been allocated by the Central Bank for the payment of such importations, free from all taxes and duties, upon certification of the NSDB that such articles are imported solely for scientific and technological research and development and not for barter, sale or hire. In case such articles are subsequently conveyed or transferred to other parties for a pecuniary consideration, taxes and duties shall be collected thereon at double rate provided for under existing laws, payable by the transferor. The NSDB shall promulgate the rules and regulations to implement this provision. Under Executive Order No. 784, the certificate shall now be issued by the NSTA. It is desired that this Circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner