Lenient tax-exemption rules for nonstock, nonprofit educational institutions
Recall that in 2013, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) 020-13, prescribing the policies and guidelines in the processing of tax-exemption applications and revalidation of tax-exemption rulings/certifications for corporations and associations listed under Section 30 of the National Internal Revenue Code (NIRC). Essentially, corporations listed in Section 30 of the NIRC are exempt from income tax. But pursuant to the RMO, these corporations need to secure tax-exemption rulings/certifications from the BIR confirming the tax exemption and to have said exemption revalidated as often as every three years.