BIR Ruling No. 318-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City ILPP

Bureau of Internal Revenue Ruling

R.A. 7356 R.A.8291 Section 173 and R.A. 10066 I96. NIRC 31E-2C1E Tel. Nos. 926-55-36 / 927-09-63 Person to Contact: Chief. Law Division

Date: 1:arch 6, 2018

Intramuros 1002 Manila NATIONAL COMMISSION FOR CULTURE AND THE ARTS 633 General Luna St.

Attention: HON. FELIPE M. DE LEON, JR Chairman Cientlemen:

of the Manila Metropolitan Theatre by the GOVERNMENT SERVICE'INSURANCE (NCCA) from the documentary stamp tax (DST) imposed under Section 196 of the National Internal Revenue Code of 1997. as amended. SYSTEM (GSIS) to the NATIONAL COMMISSION FOR CULTURE AND THE ARTS This refers to your letter dated June 25. 2015. requesting for the exemption of the sale

taxes which is not provided for by law. in reply. we regret to inform you that the Bureau cannot extend an exemption from

both. these do not refer to documentary stamp taxes. R.A. No. 7356 provides: National Commission for Culture and the Arts" and R.A. No. 10066 otherwise known as the "National Cultural Heritage Act of 2009" shows that while tax exemption provision exists in A perusal of Republic Act (R.A.) No. 7356 otherwise known as the "Law Creating the

and duty obligations. "Section 21. Tax Exemption. The Commission shall be exempt on all its income

produced locally for the use of the Filipino artist shall be tax or duty free. All Materials that are reasonably necessary and are not manufactured or

R.A. No. 10066 provides:

National Internal Revenue Code of 1997. as amended. Commission and its affiliated cultural agencies shall be exempt from the donor 's tax and the same shall be considered us allowable deduction from the gross income in the computation of the income tax of the donor. in accordance with the provisions of the "Section 35. Tax Exemption on Donations. All donations in any form to the

NA TIONAL COMMISSION FOR CULTURE AND THE ARTS (NCCA 3018

and its deductibility from the gross income of the donor. Section 35 of R.A. No. 10066 refers to donor's tax exemption of donations to the Commission From the foregoing. the NCCA is oniy exempt from "income and duty' obligations"

Section.39 of RA. No. 8921 otherwise known as -The Government Service Insurance System Act of 1997". Thus, it cannot be made to answer for the DST due. On the part of the GSIS. the same is exempt from all taxes in the transaction under

the DST due. thereto..who is not exempt shall be the one directly liable for the tax. Thus. NCCA must'bear whenever one party to the taxable document enjoys exemption from DST, the other party Foliowing Section 173 of the National Internal Revenue Code of 1997. as amended.

For your information.

Very truly yours,

Commissioner of Internal Revenue CAESAR R. DULAY 013977

K-I-ASB

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