Due to corporate social responsibility (CSR) and many other reasons, most companies would create non-stock, non-profit corporations and associations. These non-stock and non-profit companies are exempt from income tax per Section 30 of the Tax Code.
Recent BIR regulations require application for tax exemption and revalidation for all non-stock and non-profit corporations and associations to qualify for such tax exemptions. The application for tax exemption and revalidation includes those which have been issued tax exemption rulings/certificates prior to June 30, 2013.
The following are the general documentary requirements:
- Original copy of the application letter for issuance of Tax Exemption Ruling;
- Certified true copy of the latest Articles of Incorporation and By-Laws issued by the Securities and Exchange Commission;
- Original copy of Certification under Oath by an executive officer of the corporation or association as to the amendments in the Articles of Incorporation/By-Laws, manner of activities, and sources and disposition of income;
- Certified true copy of the Certificate of Registration with the BIR;
- Original copy of the Certification under Oath by the Treasurer of the corporation or association as to the amount of income, compensation paid by corporation to trustees, officers and other executives.
- Original copy of the Certification issued by the RDO where the corporation or association is registered that it is not subject to pending investigation, audit or tax assessment, claim of refund, tax credit, collection proceedings, or judicial appeal, or status thereof if any;
- Certified true copies of the Income Tax Returns or Annual Information Returns and Financial Statements of the corporation or association for the last three (3) years; and
- Original copy of a statement under Oath by an executive officer of the corporation or association as to its modus operandi which shall include the full description of its activities, narrative description of anticipated receipts and contemplated expenditures and detailed description of all revenues which it seeks to be exempted from income tax.
For assistance on the application for Tax Exemption Ruling or any tax matters, kindly contact Triple I Consulting.