RMC No. 04-2013: Requires tax-exempt hospitals to secure revalidated tax exemption rulings/certificates

Summary

RMC No. 04-2013 requires hospitals with BIR tax-exempt rulings to apply for revalidation of their tax-exempt status, and invalidates certain earlier rulings.

Key points

1. Who must apply. All hospitals and non-stock, non-profit organizations operating hospitals that were issued tax-exempt rulings by the BIR.
2. Where to file. The request goes to the Revenue District Office (RDO) where the organization is registered.
3. Documents required. A letter application naming the specific paragraph of Section 30 of the NIRC relied on, the latest SEC-certified Articles of Incorporation and By-Laws, the BIR Certificate of Registration, and a Tax Clearance from the RDO. Also required are income tax returns or Annual Information Returns with financial statements for the last three years, and a statement of modus operandi showing sources of revenues.
4. Further documents. The BIR may ask for other documents as circumstances warrant during its review.
5. Earlier rulings no longer valid. All rulings issued before November 1, 2012 granting tax exemption under Section 30 of the NIRC to proprietary non-profit hospitals or non-stock, non-profit entities operating hospitals are no longer valid.

Who is affected

• Tax-exempt hospitals
• Non-stock, non-profit organizations operating hospitals

Deadlines and effectivity

• Rulings issued before November 1, 2012 no longer valid

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.