I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
Here's a list of tax exemptions you will find interesting. They fall under the constitution and the NIRC (the tax code.)
1987 Constitution
1.) Churches, non-profit cemeteries, schools, convents, and all other real property devoted to religious, educational or charitable purposes are exempt from real estate tax.
2.) Non-stock, non profit educational institutions are exempt from tax on their income and assets if the income comes directly and exclusively from educational functions (like tuition fees,) and if the assets are used for the same purposes. They are also exempt from import duties if they buy educational equipment from abroad.
National Internal Revenue Code
1.) From income tax:
Labor, agricultural or horticultural organizations not principally organized for profit.
Company-owned cemeteries or cemeteries made for the use of members of exclusive organizations.
Non-stock organizations/corporations devoted to religious, scientific, athletic, cultural or charitable purposes.
Business leagues/chambers of commerce not organized for profit.
Civic leagues/organizations not organized for profit.
Non-stock, non-profit educational institutions.
Mutual savings banks without capital stocks represented by shares.
Cooperative banks without capital stock and operated for mutual purposes and without profit.
Development banks.
General professional partnerships.
2.) From estate tax:
Merger of usufruct in the owner of the naked title (a.k.a. when the property is under the complete control of one (1) person -such as if the usufruct also becomes the owner or vice-versa.)
Donations to charities and cultural or social welfare institutions -subject to certain limitations.
Transfer of property from an heir/legatee to another beneficiary in accordance to the deceased's instructions.
Delivery of the inheritance by the fiduciary her/legatee to a fideicommissary
3.) From donor's tax:
Gifts to educational, philanthropic, religious, charitable, cultural, welfare or research organization/institution, accredited NGO or trust.
Gifts to the national government or any of its political subdivisions and agencies not created for profit(so government banks are out of the question.)
Wedding gifts from parents to their children, regardless of whether the children are legitimate, illegitimate or adopted. But the exemption covers only the first Php10,000.
Remember this: the pattern in taxation is that if the government can't tax you in one way, it can tax you in another. If they can't tax you one way, they'll tax you in another. (Ex. A BMBE is exempt from income tax but its employees and owners are not.) So be wary of the tax laws.
1 comments:
Article 6 sec 28 paragraph 3 of Phil. Constitution provides that charitable institution churches, or parsonages or convents appurtenant thereto, non profit cemeteries and all lands, buildings, and improvements actually directly and exclusively correligious, charitable or educational purposes shall be exempt from taxation.
i'm confused, to what kind of tax this exemption apply? and is proof of actual use necessary for tax exemption purposes under the constitution?? >__< pls answer if you know..
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