February 2, 2009

Mrs. JANE S. ZEHTAB-JADID Executive Secretary Dawnbreakers Foundation, Inc. 1070 A. Roxas-Bautista Streets Singalong Subdivision, Malate Metro Manila M a d am : This pertains to your letter dated January 22, 2009, requesting exemption from payment of real property tax on the radio equipment and other donated units used in the radio station Radyo Bahai owned by The Dawnbreakers, Inc. (DBFI), situated in Bulac, Talavera, said province. As represented, the Dawnbreakers Foundation, Inc. is an agency of the National Spiritual Assembly of the Bahais of the Philippines, created under Republic Act No. 9123, an ACT GRANTING THE DAWNBREAKERS, INC., A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN FOR NON-PROFIT AND NON-COMMERCIAL RADIO BROADCASTING STATION IN THE PHILIPPINES Per representation made, DBFI was registered with the Securities and Exchange Commission (SEC) on September 9, 1991 as a non-stock corporation with the following purposes: 1) to promote universal education at the individual, family and community levels of the Philippine Society, in its various aspects of material, human and spiritual education; and 2) to engage in tri-media approach in the promotion of universal education by initially establishing radio broadcasting network and eventually the whole trimedia network. In this connection, this is to inform that machinery which are actually, directly, and exclusively used for Religious, Charitable and Educational purposes are not among those real properties exempted from payment of real property tax as provided for under Section 234(b) of the Local Government Code of 1991 quoted hereunder:

SEC. 234. Exemptions from Real Property Tax. The following are exempted from payment of the real property tax: x x x. (b) All charitable institutions, churches, parsonages or convents appurtenant thereto including mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements which are actually, directly and exclusively used for religious, charitable or educational purposes; x x x. Attached for your information is a copy of Local Finance Circular No. 1-2000, amending Joint Local Treasury/Assessment Regulations No. 1-88, providing the proper appraisal and assessment of real properties, the pertinent portion of which reads as follows: x x x. 1. Machinery that is permanently attached to land and buildings is subject to real property tax, even though this is actually, directly and exclusively used for religious, charitable or educational purposes. 2. Machinery that is not permanently attached to real estate is: a. Subject to the real property tax if it is an essential and principal element of an industry, work or activity without which such industry, work or activity, cannot function; and b. Not subject to the real property if it is not an essential and principal element of an industry, work or activity. x x x. We hope that we have enlightened you on the matter. Very truly yours,

MA. PRESENTACION R. MONTESA Executive Director

CCS #: 013-09 RadyoBahai