The constitutionality of revenue memorandum order no. 20-2013, as amended, as it applies to non-stock, non-profit educational institutions

Date of Publication


Document Type


Degree Name

Juris Doctor


College of Law




Best thesis, 2015/2nd batch

Thesis Adviser

Mijares, Martin Ignacio, Atty.

Defense Panel Chair

Cruz, Jocelyn, Atty.

Defense Panel Member

Torreja, Richard, Atty.


On July 22, 2013, the Office of the Commissioner of Internal Revenue issued Revenue Memorandum Order No. 20-2013. It prescribes policies and guidelines in the processing of tax exemption applications and for the revalidation of tax exemption rulings or certificates of non-stock, non-profit corporations and associations, including educational institutions, listed under Section 30 of the National Internal Revenue Code of 1997 as amended. It claims that it is the BIR that accords tax-exempt status to these corporations and associations by way of confirmatory BIR rulings or certificates of tax exemption which are issued after due evaluation of documents submitted by said corporations. However, as regards non-stock, non-profit educational institutions (NSNPs), the Constitution explicitly provides that all revenues and assets of NSNPs used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties. To avail of this tax exemption, the Supreme Court ruled that only two requirements must be complied with – (1) that the educational institution must fall under the classification non-stock, non-profit educational institution and (2) the income it seeks to be exempted from taxation is used actually, directly, and exclusively for educational purposes. By imposing additional requirements in order for NSNPs to benefit from the tax incentive given by the Constitution, RMO No. 20-2013, as amended, has neither the force nor the effect of law. It is not authorized by the legislature or the Constitution, and is beyond the scope of the authority given by law.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

83 leaves ; 28 cm. + 1 computer optical disc

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