No. 1.

Whether proprietary hospitals are exempted from Real Property Tax

No. proprietary hospitals are not exempted from Real Property Tax.

The controlling doctrine on exemption from taxation of Real Property of institutions is not the institution
itself; those exempted from real estate taxes are lands, buildings and improvements actually, directly
and exclusively used for religious, charitable or educational purposes. If real property is used for one or
more commercial purposes, it is not exclusively used for the exempted purposes, hence subject to
taxation. (St. Louis Young Men’s Christian Association v. Gehner) By reason thereof, proprietary hospitals
are not exempted from RPT.

Interest on bank deposits earned by a Government Educational Institution is subject to tax; while the
same interest if earned by a Non-Stock, Non-Profit Education Institution is exempt, provided that it is
used ADE for educational purposes.

Agree. The interest on bank deposits earned by a Government Education Institution is subject to tax
since the said income is unrelated to school operations. (IRR of DEC Order No. 137-87 dated December
16, 1987); While the same interest earned by the non-stock and non-profit educational institution is
exempted since the Constitution provides that revenues and assets actually, directly and exclusively
used for educational purposes shall be exempted from taxes and duties. [Article XIV, Section 4(3)]

Pwede bang magclaim ng Net Capital Loss Carry Over in pure compensation income earner

No. Net Capital Loss Carry Over cannot be availed of by a pure compensation income earner.

The law provides that if any taxpayer, other than a corporation, sustains in any taxable year a net capital
loss . . . (NIRC, Sec. 39 [D]). Nota bene, Net capital loss defined as the excess of the losses from sales or
exchanges of capital assets over the gains from such sales or exchanges. It is patently clear that
compensation does not arise from sales or exchanges of capital assets over gains from such sales or
exchanges and thus not considered as net capital gain/loss. Hence, Net Capital Loss Carry Over cannot
be availed of by a pure compensation income earner.