Amending pertinent provisions of Revenue Memorandum Order No. 20-2013, prescribing the policies and guidelines in the issuance of Tax Exemption Rulings to qualified non-stock, non-profit corporations and associations under section 30 of the National Internal Revenue Code of 1997, as amended

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:

  • SECTION 10. Renewal of Tax Exemption Rulings. —Tax Exemption Rulings may be renewed upon filing of a subsequent Application for Tax Exemption/Revalidation, under same requirements and procedures provided herein. Otherwise, the exemption shall be deemed revoked upon the expiration of the Tax Exemption Ruling. The new Tax Exemption Ruling shall be valid for another period of three (3) years, unless sooner revoked or cancelled. (Underscoring provided)

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.