Ms. Gloria V. Ison

September 2, 1981 Ms. Gloria V. Ison 11/F China Banking Corporation Bldg. Paseo de Roxas cor. Villar St. Makati, Metro Manila Dear Ms. Ison: This refers to your letter dated July 22, 1981 requesting clarification on the query posed therein. It appears from your letter that the World Vision International Asia Region is a regional or area headquarters and a non-profit organization exempt from payment of income tax, with annual gross receipts of more than P100,000.00. You wish to be informed if said entity is required to submit annual financial statements duly audited by an independent certified public accountant pursuant to SEC "Rules Requiring Non-Stock Corporations to Keep Accounting Records and to Submit Annual Financial Statements" issued on November 20, 1980. Considering that subject entity is a duly registered regional or area headquarters of a multinational company, it is specifically governed by P.D. 218 and its implementing rules and regulations. Under Section 3 of the pertinent Rules and Regulations, which have the force and effect of law, only the following reports shall be submitted to SEC by every registered regional or area headquarters of a multinational company: "A. A general information sheet in the prescribed form, showing among others, the names, position titles, and salaries of all the officers and personnel of the regional or area headquarters in the Philippines, within thirty (30) days after issuance of the certificate of registration and license. cdlex Any vacancy or change in the composition of its personnel shall likewise be reported within ten (10) days after such vacancy or change occurs. B. A certificate of inward remittance from a local bank showing that it has remitted to the Philippines the amount of at least 30,000 US dollars or its equivalent in other foreign currency and converted the same to Philippine Currency, within thirty (30) days from receipt of the certificate of registration and license. A similar certificate should be submitted to the SEC within ten (10) days from receipt of every additional inward remittance of money for the maintenance of the regional or area headquarters in the Philippines. C. An annual report showing its operations in the Philippines, including proofs of inward remittances amounting to at least 50,000 US dollars or its equivalent in other foreign currencies converted into Philippine Pesos, and its expenditures in the Philippines during the past year. . . . ." In view of the foregoing, the World Vision International Asia Region should comply only with the reportorial requirements prescribed in the abovequoted rules and regulations. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Associate Commissioner