Publishing Republic Act No. 3538 Exempting the Ford Foundation and Its Grants from the Payment of Gift, Franchise, Specific, Percentage, Real Property, and All Other Taxes, Duties and Fees and To Exempt Foreign Personnel Engaged in the Ford Foundation Program from the Payment of Income Tax

September 26, 1963 REVENUE MEMORANDUM CIRCULAR NO. 28-63 SUBJECT : Publishing Republic Act No. 3538 Exempting the Ford Foundation and Its Grants from the Payment of Gift, Franchise, Specific, Percentage, Real Property, and All Other Taxes, Duties and Fees and To Exempt Foreign Personnel Engaged in the Ford Foundation Program from the Payment of Income Tax TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder Republic Act No. 3538: prcd "Republic Act No. 3538 "AN ACT TO EXEMPT THE FORD FOUNDATION AND ITS GRANTS FROM THE PAYMENT OF GIFT, FRANCHISE SPECIFIC, PERCENTAGE, REAL PROPERTY, AND ALL OTHER TAXES, DUTIES AND FEES AND TO EXEMPT FOREIGN PERSONNEL ENGAGED IN THE FORD FOUNDATION PROGRAM FROM THE PAYMENT OF INCOME TAX. "Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: "SECTION 1. The provisions of existing laws or ordinances to the contrary notwithstanding, the Ford Foundation shall be exempt from the payment of gift, franchise, specific, percentage, real property and all other taxes, duties and fees provided under existing laws or ordinances. This exemption shall extend to goods imported under the Ford Foundation grants for scientific, educational and training purposes to government organizations and private institutions recognized by the government and to goods brought in or imported for the personal use of foreign personnel whose services are paid by the Ford Foundation, or from funds granted by the Ford Foundation. Provided, however , That this exemption is without prejudice to the collection of customs duties and taxes on goods or articles brought or importer into the Philippines for the use of such foreign personnel should such goods or articles subsequently be sold, transferred or exchanged in the Philippines to persons or entities not entitled to exemption from said customs duties and taxes pursuant to existing laws and regulations governing the matter. "SEC. 2. Non-Filipino citizens serving on the staff of the Ford Foundation grants shall be exempted from the payment of income tax on salaries and stipends in dollars received solely and by reason of service rendered under the Ford Foundation program. "SEC. 3. This Act shall take effect upon its approval. "Approved, June 20, 1963." LLpr Features of the Act I. Exemption from tax . The Ford Foundation shall be exempt from the payment of gift, franchise, specific, percentage, real property, and all other taxes, duties and fees provided under existing laws or ordinances. Likewise, goods imported under the said Foundation grants for scientific, educational and training purposes to government organizations and private institutions recognized by the Government are exempt from the payment of the aforesaid taxes. II. Liability to tax in case of unauthorized use or disposition . All personal effects brought into the Philippines for the personal use of foreign personnel whose services are paid by the Foundation or from funds granted by the Ford Foundation are exempt from the payment of internal revenue taxes. However, where the said articles are sold, transferred, or exchanged to other persons, the corresponding tax shall be collected, the same to be the liability of the transferee, except when the same are donated to the government or to the Foundation. Salaries and stipends in dollars received solely and by reason of service rendered under the Ford Foundation program by non-Filipino citizens shall be exempt from income tax. Effectivity Republic Act No. 3538 took effect on June 20, 1963. Publicity Internal revenue officers and others charged with the enforcement of internal revenue laws are hereby requested to give this circular as wide a publicity as possible. prll (SGD.) RAMON T. OBEN Acting Commissioner of Internal Revenue