Publishing the Memorandum Agreement between the Bureau of Internal Revenue and the Department of Science and Technology (DOST) on the Certification and Accreditation Requirements for Private Science Foundations to Avail of the Tax Exemption Privileges Under Existing Laws, Rules and Regulations

December 8, 1988 REVENUE MEMORANDUM CIRCULAR NO. 58-88 SUBJECT : Publishing the Memorandum Agreement between the Bureau of Internal Revenue and the Department of Science and Technology (DOST) on the Certification and Accreditation Requirements for Private Science Foundations to Avail of the Tax Exemption Privileges Under Existing Laws, Rules and Regulations TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, hereunder is the full text of the letter of the Commissioner of Internal Revenue to the Secretary of the Department of Science and Technology as well as the Memorandum dated August 30, 1988. "August 31, 1988 The Honorable Secretary Antonio V. Arizabal Department of Science and Technology (DOST) Gen. Santos Avenue, Bicutan, Taguig Metro Manila Dear Secretary Arizabal, With reference to your letter dated July 21, 1988, please find enclosed a copy of the memorandum dated August 30, 1988 which I have approved regarding the certification and accreditation requirements to be followed, in order that private science foundations may continue to avail of the tax exemption privileges under existing laws, rules and regulations. If you are agreeable to the stated arrangements, kindly indicate your conforme by signing your name on the space provided below and return a copy to this Office. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner Conforme: As an Interim Arrangement (SGD) ANTONIO V. ARIZABAL Secretary Department of Science and Technology" "August 30, 1988 MEMORANDUM FOR: The Commissioner Subject : Certification and Accreditation of Private Science Foundations I respectfully recommend the following arrangements for the certification and accreditation of private science foundations in order for them to continue availing of the tax exemption privileges under existing laws, rules and regulations: 1. DOST shall process all applications for certification and certify to the BIR that the applicant is a certified science/technology and/or research foundation. It shall also certify that donations made to certified foundations or received from another certified foundations are to be used actually, directly and exclusively for scientific and technological activities; 2. DOST shall in the course of its evaluation of application of existing foundations inspect the facilities and review the projects of said certified foundations and recommend the suspension and/or revocation of the certification for violation of the terms and conditions specified under NSTA Regulations; cd 3. BIR shall issue the accreditation to private science/technology and research foundations as a donee institution which comply with all the requirements therefor, pursuant to existing BIR-NEDA Regulations; it shall approve the tax exemption of all funds contributed to the support and maintenance of certified and accredited foundations which are to be actually, directly and exclusively used for scientific and technological pursuit; 4. BIR shall examine and audit the books of accounts of certified foundations pursuant to Section 236 of the Tax Code as amended, their investment portfolio, the utilization of donated funds/properties, and determine the amount of tax payable, if any is found due; and recommend suspension and/or cancellation of the accreditation for failure to comply with the laws and BIR-NEDA Regulations No. 1-81 as amended by Revenue Regulations Nos. 1-82 and 10-82. cdt Respectfully Submitted: (SGD) ALICIA L. TOMACRUZ Asst. Chief, Int'l. Tax Affairs Division APPROVED: (SGD) BIENVENIDO A. TAN, JR. Commissioner Conforme: As an Interim Arrangement (SGD) ANTONIO V. ARIZABAL Secretary Department of Science and Technology" All Internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide publicity as possible. BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue