We will create ONE PAGE advertisement especially made for your products and services you offered to your
customers or clients and we will propagate this page online like a wild fire that spreads
rapidly, just sit back and relax and we will do the rest for you. Google and other search
engines will see your page and searchable across the globe at least within 24hours.
View more Details
For just Php 5,000 / year then renewable
BIR clears tax treatment on non-profit firms
Shared/Posted: Jun 29, 2016 at 10:21am
MANILA, Philippines - There’s no stopping outgoing Internal Revenue commissioner Kim Henares.
More than a week before she steps down, Henares has institutionalized regulations on tax exemptions for non-stock and non-profit corporations.
Issued June 20, Revenue Memorandum Circular 64-2016 clarified that being registered as a non-profit organization with the Securities and Exchange Commission (SEC) does not guarantee an automatic income tax exemption.
The circular then laid down “characteristics” which would make an organization qualify for tax relief, covering educational institutions, religious and labor organizations, mutual savings associations, agricultural organizations, among others.
“There is nothing new there. That is already being practiced. What we are doing is merely to institutionalize the rules so that everyone knows it,” Henares said in a phone interview.
“It does not mean that you are registered as non-stock, you will be tax-exempt. The SEC registration is different from tax treatment,” Henares added.
Under the circular, non-stock, non-profit companies were reminded that only their income in their operations is tax-exempt, and that assets earned from other means are levied.
It said since granting tax exemption results into revenue losses, it will be up to the corporation to prove it is worthy of such relief.
“It (company) must thus demonstrate that its earnings or assets shall not inure to the benefit of any of its trustees, organizers, officers, members of any specific person,” the circular said.
Henares said the BIR would evaluate companies if they are worthy of exemption during their regular audits.
The outgoing BIR chief has been hit for her slew of regulations issued weeks before she steps down by June 30.
But Henares reiterated she is merely putting in black-and-white what is already being practiced “I am only putting everything on paper,” she said.
Kindly refer to the origin of this news.
NO PLACEMENT FEE NO SALARY DEDUCTION NO HIDDEN CHARGES
By: Engr. Manuel Jose "Boying" Rubia Echaves Change is inevitable and they say that Real Change is here For the...
MANILA, Philippines - The Philippines aims to be among the top foreign direct investment (FDI) magnets in Southeast...
GT Capital Holdings Inc. has now fully exited the lucrative power sector as it makes a bigger bet for its long-term...