Shobe_CEO » BIR Ruling No. 101-80 (July 23, 1980)

BIR Ruling No. 101-80 (July 23, 1980)

June 5th, 2009

Ms. Deryl Braithwaite

Cultural Attache

British Embassy

M a n i l a

S i r :

This refers to your letter dated May 22, 1980 requesting tax exemption on the sum of P100,000 which the British Community will donate to the Cultural Center of the Philippines (CCP) as a result of the presentation by one of your major British Companies, the Sadler’s Wells Royal Ballet, in Manila in September, 1980.

In reply, please be informed that since the aforesaid donation is being made to a cultural organization, the same is exempt from the donor’s gift tax, pursuant to Section 123(a)(3) of the Tax Code of 1977, as amended.

Moreover, since CCP is a non-municipal public corporation (Sec. 3, P.D. No. 15, as amended by P.D. No. 1444), it is a government agency. Accordingly, donations of members of the British Community to the CCP shall be deductible in full from the gross income of said members for income tax purposes, if said donations are given exclusively to finance, to provide for, or to be used in undertaking priority activities in culture according to a national priority plan to be determined by the NEDA. In case any such donation to CCP is not in accordance with the said annual priority plan, the same shall be subject to the 6% limitation prescribed in Section 30(h)(1) of the Tax Code. (Section 30(h)(2)(A) of the Tax Code of 1977, as amended by Batas Pambansa Blg. 45). aisadc

Very truly yours,

RUBEN B. ANCHETA

Acting Commissioner

Entry Filed under: Taxation