29 October 2013
The Commissioner of Internal Revenue has issued Revenue Memorandum Order (RMO) No. 28-2013 dated 29 October 2013 (“Amendment”) to amend Section 10 of Revenue Memorandum Order No. 20-2013, which pertains to renewal of tax exemption rulings.
RMO No. 20-2013 lays down policies and guidelines in the issuance of Tax Exemption Rulings to qualified non-stock, non-profit corporations and associations (“exempt entities”). In this RMO, the Commissioner of Internal Revenue provided that tax exemption rulings granted to exempt entities, prior to 30 June 2012 shall be valid until 30 December 2013 and those issuances issued after 30 June 2012 shall continue to be valid for 3 years from date of issuance unless sooner revoked or cancelled. Prior to amendment, Section 10 reads as follows:
Under the Amendment, the second sentence of Section 10 has been deleted and revised to read as follows:
Failure to renew the Tax Exemption Ruling shall be deemed revocation thereof upon the expiration of the three (3)-year period.