BIR Ruling No. 457-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Section 30(G) of the Tax Code of 1997

Campus Avenue, cor. Park Avenue McKinley Town Center BGC, Taguig City 3F Commerce and Industry Plaza 1030 PCCI HUMAN RESOURCES DEVELOPMENT FOUNDATION, INC. BIR Ruling No. 466-2014 02.57 - 2.0.19 AUG 2 8 2019

Attention: ALBERTO P. FENIX JR. President Gentlemen:

INC. for the issuance of a Certificate of Tax Exemption enjoyed by non-stock, non-profit organizations under Section 30(G) of the Tax Code of 1997, as amended. indorsed on August 22, 2018 by the Regional Director, Revenue Region No. 8, Makati City. applying on behalf of PCCI HUMAN RESOURCES DEVELOPMENT FOUNDATIONj Tiis refers to your letter, with attachments, dated November , -915, which was

nion-profit association duly organized and existing under the laws of the Republic of the Philippines; that it is registered with the Securities and Exchange Commission (SEC) under FOUNDATION, INC., with BIR Taxpayer's Identification (TIN) No. Company Registration No. was incorporated are: Certificate of Registration No. Itis representedthat PCCI HUMAN RESOURCES :: and that the purposes for which the association "dated April 12, 2016, is a'non-stock, DEVELOPMENT and

3 A To receive grants, donations, bequest in furtherance of its programs for Human Resource Development and Human Resource Management. To engage in and conduct programs, events, projects or activities promoting To establish and operate a training institution in technical, vocational, educational and health courses and other specialized courses in human resource development; human resources development and/or human resources development: To promote and encourage business Chambers and Associations, and business enterprises to be actively involved in Human Resources Development; and

it is in"fact covered by the exemption so claimed.32 (BIR Ruling No. 466-2014 dated November 19, 2014 does not, by this reason alone, completely exempt an institution from tax.1 Thus, "statutes language in law too plain to be mistaken. Otherwise stated, taxation is the rule, exemption is the exception. The burden of proof rests upon the party claiming the exemption to prove that granting tax exemptions are construed strictissimi juris against the taxpayer and liberally in favor of the taxing authority. A claim of tax exemption must be clearly shown and based on In reply, please bear in mind that, "being a non-stock and/or non-profit corporation

enumerates the non-stock and/or non-profit corporations/associations/organizations that are Section 30 of the National Internal Revenue Code (NIRC) of 1997, as amended,

2 Quezon City and The City Treasurer of Quezon City vs. ABS-CBN Broadcasting Corporation [G.R. No. 166408, 6 i CIR vs. St. Luke's Medical Center, Inc. [G.R. No. 195909 & G.R. No. 195960, 26 September 2012]] October 2008].

PCCI Human Resources Development Foundation, Inc. Page 2 of 2 AUG 2 8 2019 0457-2015

exempt from income tax in respect to income received by them as such. Section 30 (G) of the NIRC of 1997. as amended, provides:

organizations shall not be taxed under this Title in respect to income received by them as such: "Sec. 30. Exempt from Tax on Corporations. -- The following XXX XXX XXX

exclusively for the promotion of social welfare; (G) Civic league or organization not organized for profit but operated

"Social welfare purposes", to wit: DEVELOPMENT FOUNDATION, INC must satisfy the meaning of the term "promotion of social welfare " in relation to the purposes laid down in its Article of Incorporation, in order for it to fall within the ambit of the law. Revenue Regulations (RR) No. 13-98 defines National Internal Revenue Code of 1997, as amended, PCCI HUMAN RESOURCES For the purpose of availing the tax exemption granted by Section 30 (G) of the

"Social welfare purposes" - shall refer to and include

hansenites and similar cases; anc workers. adults, released prisoners, drug addicts, alcoholics, mentally retarded natural disasters, including assistance to cultural minorities; children of children reasons of poverty, youth, physical and mental disability, illness, old age, and children and youth, such as providing services for drop-outs, pre-school conditions of distressed citizens particularly those who are handicapped by (tit) (iv} (i ( iow-income working mothers, and physically handicapped providing for services to squatter families and to. displaced providing for the rehabilitation of the youth and disabled pursuing a program for the protection and development of undertaking and/or assisting in the amelioration of the living

specialized courses in human resource development, are not among the above enumerations, and cannot be considered similar to said purposes. activities for the promotion of human resources development, the establishment and operation of training institution in technical, vocational, educational and health courses and other Clearly, the Corporation's engagement and conduct of programs, events, projects or

INC Shall be treated as an ordinary corporation subject to thirty percent (30%) income tax Internal Revenue Code of 1997, as amended. of legal basis. Hence, PCCI HUMAN RESOURCES DEVELOPMENT FOUNDATION rate pursuant to Section 27 (A) and other internal revenue taxes imposed by the National RESOURCES DEVELOPMENT FOUNDATION, INC as a non-stock, non-profit corporation under Section 30 of the Tax Code of 1997, as amended, is hereby denied for lack In view of the foregoing, your request for the exemption of PCCI HUMAN

Please be guided accordingly

KI E Commissioner of Internal Revenue 1ae8cm&v CAESAR R. DULAY Very truly yours. 028086