BIR Ruling No. 269-2016

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Section 30 of the Tax Code of 1997. as

amended BIR Ruling No.126-14 BIR Ruling No.357-13

6m22-2016 #2692016

SIAY FRIENDS OF JESUS FELLOWSHIP,INC. Purok 1,Logpond, Siay Zamboanga Sibugay

Attention: PASTOR HENRY C. NAVARRETTE SR.

President Gentlemen:

Region No. 15-Zamboanga City requesting for the issuance of a certificate of tax This refers to your letter dated January 8, 2014. duly indorsed by Revenue

exemption enjoyed by non-stock corporation or association organized and operated exclusively for religious purposes under Section 30(E) of the Tax Code of 1997, as amended.

It is represented that Siay Friends of Jesus Fellowship, Inc. with Taxpayer's Identification No. is a corporation duly organized under the laws of

purpose for which it was incorporated is to administer its affairs, properties and estate. the Philippines; that it is registered with the Securities and Exchange Commission (SEC) under Registration No. dated December 2, 2013; and that the

non-profit corporation under Section of the Tax Code of 1997, as amended, is hereby denied for lack of factual basis. In reply, please be informed that your request for tax exemption as a non-stock

is really a corporation organized and operated as contemplated under Section 30 of of Jesus Fellowship, Inc. is a non-stock, non-profit corporation, it has to prove that it Notwithstanding that the Articles of Incorporation states that the Siay Friends

the Tax Code of 1997, as amended.

reason alone, completely exempt an institution from tax. (Commissioner of Internal Revenue vs. St. Luke's Medical Center, Inc., G.R. No. 195909 & G.R. No. 195960. 26 September 2012) Being registered as a non-stock and non-profit corporation does not. by this

ABS-CBN Broadcasting Corporation (G.R. No. 166408 dated October 6, 2008): Supreme Court in the case of Quezon City and The City Treasurer of Quezon City vs. Note that tax exemptions are never presumed and thus, as ruled by the

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Siay Friends of Jesus Fellowship. Inc Page 2 of 2 # 269-2016 6-222016

exemption ought to be expressed in clear and unambiguous terms. the burden is on the claimant to establish clearly his right to is the rule and exemption the exception, the intention to make an burden must justify his claim that the legislature intended to exempt favored in law, nor are they presumed. They must be expressed in the clearest and most unambiguous language and not'left to mere exemption and cannot be made out of inference or implications but must be laid beyond reasonable doubt" In other words, since taxation him by unmistakable terms. For exemptions from taxation are not implications. It has been held that "exemptions are never presumed, "He who claims an exemption from his share of common

revenue taxes imposed by the Tax Code of 1997, as amended. corporation subject to regular corporate income tax and the applicable internal Hence, Siay Friends of Jesus Fellowship. Inc. shall be treated as an ordinary

in the course of trade or business, sells, barters, exchanges, leases goods or properties. renders services, and any person who imports goods shall be subject to the value- added tax (VAT) imposed in Sections 106 to 108 of the same Code. Morcover, Section 105 of the Tax Code of 1997 provides that any person who.

non-stock, non-profit private organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members or their guests), or government entity. pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a The phrase "in the course of trade or business" means the regular conduct or

thereto, in general, it shall be liable for VAT. goods or services in the course of a business pursuit, including transactions incidental Accordingly. if Siay Friends of Jesus Fellowship, Inc. is engaged in the sale of

Please be guided accordingly

Very truly yours.

Commissioner of Internal Revenue KIM S. JACINTO-HENARES H 042222 K-1-JRC cc: Regional Director Revenue Region 15-Zamboanga City JUN 2 0 2016