BIR Ruling No. 314-2022

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

H30-333-23

CERTIFICATE OF TAX EXEMPTION

issued to

BIBLICAL SEMINARY OF THE PHILIPPINES.INC. 77-B Gen. T. De Leon St., Karuhatan, District 2, Valenzuela City 1441 TIN:

SEC Company Reg. No.

This certifies that the above-named corporation is a non-stock, non-profit corporation and has proven by actual operation that its primary purpose is one of those enumerated under Section 30(H) of the National Internal Revenue Code of 1997,as amended.It is exempt from INCOME TAX only on the following revenues or receipts:

1.Tuition fees and Other school fees; 2 5 Income derived from the operation of cafeterias/canteens, dormitories and bookstores Donations; and Iocated within its premises, owned and operated by BIBLICAL SEMINARY OF THE PHILIPPINES,INC., to be actually, directly and exclusively used for educational

purposes.

nothing follows.

liabilities and responsibilities stated in the Terms and Condaions hereto attached and made an subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

integral part hereof. It is liable, however, to all other taxes not enumerated above.

This certification shall be valid from the date of issuance until revoked by this Office

conditions herein set forth. It shall likewise be revoked if here are material changes in the for violation of any provisions of applicable rules and regulations of the BIR, or the terms and character, purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption

documents as represented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then this Certificate shall be considered null and void. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day of JUN Z8,2022

V

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY Ba b 052117 C

Biblical Seminary of the Philippines, Inc. Page 2 of 3 CTE No.S314- Date Issued_JUN 2 9 2Jz2

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock,Non-Profit Educatiorial Institution under Section 30(H of the National Internal Revenue Code of 1997.as Amended

TAX EXEMPTION 1 INCOME TAX.BIBLICAL SEMINARY OF THE PHILIPPINES,INC.,is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

ji. Its revenues are actually, directly and exclusively used for educational purposes. It is a non-stock, non-profit educational institution; and

statement together with the following: Revenue District Office concerned an annual information return and duly audited financial 27 (D)(1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the deposits and yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are exernpt from the 20% final tax and 15% tax on interest income under the expanded foreign currency deposit system imposed under Section BIBLICAL SEMINARY OF THE PHILIPPINES, INC.'s interest income from currency bank

and 15% tax on interest income under the expandec foreign currency deposit system imposed by Section 27 (D)(1) of the Natior al Internal Revenue Code of 1997, as amended; (a)Certification from their depository banks as to the amount of interest income earned from passive investment not subject to the 2.0% final withholding tax

(b)Certification of actual utilization of the said income; and

of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets, on or before the 1 5th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. (cBoard Resolution by the school administration on proposed projects (i.e.. construction and/or improvement of school buildings and facilities, acquisition 137-87 2)VALUE ADDED TAX (VAD ON EDUCATIONAL SERVICES. Pursuant to Section they are owned and operated by it as ancillary activities. BIBLICAL SEMINARY OF THE PHILIPPINES, INC.3 are exempt from taxation provided OF THE PHILIPPINES,INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of 109(1)(H) of the National Internal Revenue Code of 1997,as amended,BIBLICAL SEMINARY

LIABILITY FOR INTERNAL REVENUE TAXES 1)INCOME TAX.

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the income/receipts/revenues not expressly exempted and stated in the Certificate of Tax BIBLICAL SEMINARY OF THE PHILIPPINES,INC.is subject to income tax on all its

2 Department Order No. 149-95 dated November 24, 1995 amending Departmen: Order No. 137-87. Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Janu ary 1, 2018.

Biblical Seminary of the Philippines, Inc. Page 3 of 3 CTE No.St-3 1 h - 2 ?2 Date Issued JUN 2 g 2022

National Internal Revenue Code of 1997, as amended, on its income derived from any of its for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. properties, real or personal, or any activity conducted for profit, which income should be returned

2 VALUE ADDED TAX/PERCENTAGE TAX

derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00), or to the 3% percentage tax, if gross receipts do not exceed If BIBLICAL SEMINARY OF THE PHILIPPINES,INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues P3,000,000.00.

Sections 106,107 and 108 of the Naional Internal Revenue Code of 1997, as amended. Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties. services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3)WITHHOLDING TAX.

Revenue Code of 1997, as amended,as implemented by Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. BIBLICAL SEMINARY OF THE PHILIPPINES,INC.shall be constituted as withholding subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the National Internal agent for the government if it acts as an employer and its empioyees receive compensation income

TAXPAYER DUTIES & RESPONSIBILITIES 1) The honoraria/allowances given to members of the Board cf Trustees must be reasonable and subject to liquidation (DOF Opinion No. 005-2019).

2). Required to file on or before the 15th day of the fourth month following the end of the accounting oath, stating its gross income and expenses incurred during the preceding period and a certificate operation and activities as well as sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. period a Profit and Loss Statement and Balance Sheet with the Annual Information Return under showing that there has not been arry change in its By-laws, Articles of Incorporation, manner of

3)Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of examination by the BIR for purposes of ascertaining compliance with the conditions under which it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to existing general and special law to the contrary notwithstancing, the books of accounts and other

4) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial invoices for each sale or transfer of merchandise or for services rendered which are not directly related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003) 5)Finally, it is subject to the payment of registration fee of P500.00 as prescribed in Section 236 (B) of the National Internal Revenue Code of 1997, as amended.

Republic Act No.10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1,2018.