BIR Ruling No. 60-2018

trt+q${ R . IBI-IC OF THE PHILIPPINES "l ws .) DEPARTMENT OF FINANCE tsLTRTAU O F' INTERN,A.I, I(EVEN{.]E !,4.LHa lnl QLiezon City o4ffiS,z G, *d\lllr?-rrPaPvl$-,ii.i&" * S.;io" 30 anrended; G) ltf lRC 20-20"11139;9R7N" ,IC RM"OF1Nli""o" No.051-14 BIR Rulin No. zi66-201.1 dlIiI{EAI{ tsIBN-E BAF 1'[ST CHLTR.{]F[ (GAItDEN{A VALI-ilY) INC. i33 l7 Magdir,vang Sulri.. N4olino IIi Bacoor". Car,'ite Attention: frfede{ h'[. !]arrera President C-ientle nien: Bltsl-*!TBhiAs Il'eTleISrs'ItoC)H'oUruIT' lCetFte{r:(Gda,tAe.dR. ."DdaEtNedIAAVprAilL1L7 E,2Y01) 7I,NaCp.pflyoirngtaxorreb;teehmaplftioonf BER.EAN cerlificate being,er-ijri1,ed by rion-stock, non-profit coqroration or association under Section 30 (E) of the Natiorral Internal Revenue Codc (NIRC) of 1997, as amended, which was foru,arded to this Olfice b1- Revenue lLegion No. 9.A. CaBah4iRo, Sto. Tomas, Batangas, clated June 13, 2A17. It is r..pr.r.,,t*,i thiLt UEREAN IlIl]{,8 ts,,\FTIST' CF{Uft.CF{ {GAI{DENIA VALLEY) lNC. r,vith BIR 'I'axpaver's ldentillcirtion No. (TlN) and Certificate of RegistrtLtion No. dated February 5,2003 and upctated or.r April 2E.2017, is a non-stock. non-prof-rt assocratlon duly organized a.riC existing under the lau,s olthe Repr:blig'o!'the Phiiippines; that jt is registered with tlie Secrrrities and Exchange t-ornrnission (SEC) un,ler Courpany RegistrationNo. anC that the purpose' for ',vhich the association lvas incorporated is for tlre adilinistration ot its affairs. proper"ties and tern pora lit ies In lepll'" plea::e be inliirmed that Section 30 of theNational inter"nal Revenue Code of 1997. as amendeci. (-1)Lurlerates the non-stock and/or non-profit coryiorations/associations/ olganizations that are e:reilpt fiorn incoure tax in respect to income rec.;ived by them as sucl-i. Section 30 (E) of the jilational Intemal Revenue Cocle of 7997, as arnen,-ied, provides, viz: l - ",\cc" 3() E.xentpt .fi^ont Tux otl C)orporations. The .t'bllowing ot'guni:rtiitrtt,s s'hall not be tctxer{ under this Tille in respecf to incorne receiyet{ i,', thetn as ^yuclt: ,YXX X,T"T _t-t-t ( E) I'on.st ot:k. ctn'Dot't.tlion ot' d,\^soL'iuliott ot'gu.ruzed ttrtti oDct'(tlcd ast'lu.sit'ely lot' re.liciotts. c/tn'itt.,blc. .st'ir,rttilit', ut/tletic'. ot' cttlltu'ul Dtl't)ose,\, or litr llrc t'cliultililtttitttt ttit,clertrrls, trt) ltttrt of-ils tteI inc'otn.e ()t'ti;':;(l ,\nrcr rtlerl Articles ol l ncorpor-ir1.iorr. adopted on Deccnrber 1 9. 20 1 6.

Obrl^..,1(-; -ti- n --1-,,-M:f ^;r,rii _i-, io" Page 2 BER:AN BiBLE llAP llsl r--lluRCh (GARDENI/.\'VALLEY) INC ;lrrtll h,.:lon! t(r ()t' irttrt'c. lo lht itutclit of'tttty;,,,g'pht"i" ()1'{(tn !.ar, trf lit:ttr or (tt1}: spcL:ilic pu'sott,' ,td_.7 I II. "Norr-stock" irr-.,itrls "tto 1)ttrl of its inconte i,g cli.strilslltable as divicJt'rtds lo its mantbcr.s, It.Lt.\lee.t, or g/ficeys" attd tliat any profit "obloined 6,t 6t't incidert tet il,s operalian's shall, ylte'ttat,cy iprtroriptanr'g, ahn'eizet'.ttsl"e2tl.lo"tt'ttllrocn'.[-uptr'tohfeitt"'Ltt]tttceeansofth-thaet ptffpot;e or purposes.fitr wltic'lt the tteces,\ut'\,(),' "t1o tteI iitcotttc or ussel crtrporritirr,, Itt the in.s'titttlion's'1rr,, tr:,rio, trtttl ctLl it:s'actli'ifibs corttltrlecl not for pro.fit'3 Iteyelue N{erncirandum Circirlar (IIMC) No. 51-2014 has clarifieci that in order fbl au cptrr,l' t6 qualily as a norl-stock nnd/or non-profit co.rporation/associatior/olganization exeirtpt fior-ri rncome tax undei' Section 30 clf thc National {nlernal Re.,,enue Cor-tre, as ameude-d' its npeortsoinnu. r'eIhteo the beneht of any .of its trustees, organizers. o{licers, ealrilgs or assets shali follorving are considcred "inuremenl,s" 01'such nature: any spcci.lic inerl.blrs or " L 7-|rc ltt4,inenl of' contltensuliort, sttlrtric-t, or honorru'iutn to ils I t' tt.r I t".' 5 t )t' ( ) t' lLt i Ii:(t'.\. .\'. f.\'. (,G.\'[tD{inljNt{hAbVl:druLb{,r[li;Vtt)"c]l{jr\Cio.c,ujttnre,vuaslsdicsciifosXe}ctJrAtUhai.Al 'tlhNe ts{lil-E tsAr'['{ST CEiURCH tsoard of Tliistees are entitied to holorariunr and aiion,l,;rLS. Fourth paragratph of the Treasurer's Affidavil/Celtificaiion states tlrut: : "T'h,.' j.cnorurhnn uncl .cLlloyvtmces ure none'fhelc'ss givett only ttpotl ttt't,!/t'rbilil-t' tlf /imtls. v'lticl't is clepenclen[ on lhe vJlunlar]' c'ltu'itub/e '-lrtncttioits, tilhes und o.fJ-erings rtf ntembers'" The giving of lt,-riiorariunis and liliowances to thc membei's of the' iloard of frustees is coirsiclereti I clisiribulioir of the equity (including the iret income) oi'EEREA.N tsIBLE IlApTlsT CHIJRCF1 (GAR.DEI{{A VAI-LtrY) INA. This is a form o[ private inuiement it,ttirli the non-profit larrv.prohiOits in the organization anci operation of a non-stock. ,-:or.poration. Tltis'act violates the requirement that uo prart of the net income or assets of the colporatiou shall inurc to the benefii r:f any illdividq4-or'_specific person. Thus, tsEREAN BIIit-tr IlApTtsT cF{{_rRCf{ (GAI{-I}E,NXA VALL,EY) XNC. camot be: qr"ralificd as a non- stc,cL" nt-,ir-profit coriloration u,.rd.r Section 30 (E) of the National Interol;ti Revenue Code of l,t)97. ls aLncrtdeJ. Piease beal iu niscl t[rat, ""being rr rtort-s'loclr ttnc]/or non-pt'qfit corp's1't,11urt dttes nol, by thi,s' rcusort ulttne, contpletel.t,e.x'enryi mt institution.fi'om luj""t. Thus, "st'ttlutes' glanling..tttx t,xciltJ)tion,t rtt'e constrtietl strictissiirti juris uguinst lhe ltrxpol'er and lib,erally in.favor o.f the tuxirig trtrlhot.i/1,. A t:luittt ol-lu:r exentplityt nirsl be cleurllt slutv,tt nttd ltnsecl on langtruge in i)t, plcrin tit be mi.stttlrit. Otheru,iie stutecl, tuxntion i,s the rule, exentption is the exceplion. l'u[hye' btritlert tf prool t ests' ultttrt lhe purty' cluiming the exemptiort to pt'ove thctt il i's in .fttcl c.gt,eretl bt- the'exenr1t/io,t,stt'cltritnetf's.1nm Ruling lVo.4ti5-2014 dntedf'doventber 19,2014) in r,'ier,r, of tlie ibregoing. the reciuest of BtrREAN EIELE FI.$.FT{ST' CHURCFI (GAt{.D}tNtA VALL,flY1 tNC.1o be exenrpted fiorn income tax on it:; income as a Sectiotl l0(11) corporation is ht:,.eb1, denied as it tailed to prove that it is a n'.rn-profit corporation. I Scclion 87. Corpolation Cr rlc ' St. LLrke's N4edicai (-cnter. lnc." (j.i{. Nos. 195909 and 195960 datcd26 Septeniber'2t)12 I L'll{ rs. Ul. t uke's Nleclical (lcnter. lnc. IG.R. No. l9-5909 & G.R. No. 195960.26 September 2'il2]. 166408. 6 gclslrcr ' t.'ltl rs. (lity arid lhe Citl' Ir;asurel of Quezon Ciity vs. AIlil-CBN Broadcasting C--orporation lG.R. No. tluezon r008 I

lNC. Pag'e 3 BEBEAN BTBLE BAPTTST CHURCn (GARDENIA vALLEY) risjjs*;019 *e4*?01$ . Therefore, BER.E,AI{ ISXBLE tsAPTlST CF{UR.CH (GAR.DEhIIA I/ALLEY) INC. shall be treated as an ordinary corpol'ation subject io thirty pelcent (30%) income tax rate pursuant to Sectioir 27 (A) and other internal revenue taxes imposed by the National Internal Revenue Code of 1997 " as amended. Please be guided accordingly. Vely truly yours, IiX**/s--*Y CAESAR R. Dt-iI,AY Cornmissioner of f,rlerna\TTT. U hi-I i,p.r COPY FURNISHED: The Revenue District Officer Revenue District Office No. 548 - West Cavite