29 July 2013
The Commissioner of Internal Revenue (“CIR”) has issued Revenue Memorandum Order No. 20-2013 dated 22 July 2012 (“RMO”) prescribing policies and guidelines on the issuance of tax exemption rulings to qualified non-stock, non-profit corporations and associations under Section 30 of the Tax Code.
Under Section 30 of the Tax Code, certain corporations/associations that have been organized for non-profit purposes or for the exclusive benefit of its members are exempt from paying income tax on the income received by them as such. Connected thereto, the Bureau of Internal Revenue (“BIR”), after due evaluation of the documents submitted by these corporations/associations, confirms their tax-exempt status under Section 30 through rulings or certificates of tax exemption. To further enhance the monitoring of these corporations, the BIR through the RMO has prescribed policies and guidelines regarding the issuance/revalidation of tax exemption rulings.
The salient features of the RMO are as follows: