BIR Ruling No. 71-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certific- f Tax Exemption No.

SH-003-2020

CERTIFICATE OFTAXEXEMPTION

issued to

SLRDC School Bldg., Rizal, San Bartolome, San Leonardo, Nueva Ecija 3 102 SAN LORENZO RUIZ DIOCESAN ACADEMY,INC

TIN: SEC Company Reg. No.

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 This certifies that the above-named corporation is a non-stock, non-profit corporation

INCOME TAX only on the following revenues or receipts:

1. Tuition fees and Other school fees; and

2 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

Iocated within its premises, owned and operated by SAN LORENZO RUIZ DIOCESAN ACADEMY.INC., to be actually, directly and exclusively used for

educational purposes.

-nothing follows

subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an

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

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and

conditions herein set forth. It shall likewise be revoked if there are material changes in the

character, purpose or method of operation of the corporation which are inconsistent with the

basis for its income tax exemption.

This Certificate of Tax Exemption is being issued on the basis of the facts and

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.

Issued this day ofJAN i 6 202n

1aeaM

CAESAR R.DULAY

K-1-JAC Commissioner of Internal Revenue 032115

Page 2 of 3 San Lorenzo Ruiz Diocesan Academy, Inc. Date issued CTE No.SH-003-2020

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAXEXE T

under Section 30(H of the National Internal Revenue Cotof For Non-Stock,Non-Profit Educational I tu 7s Aonded

TAX EXEMPTION

l) INCOME TAX.SAN LORENZO RUIZ DIOCESAN ACADEMY.INC.is exempt from the 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: payment of income tax only on revenues and receipts enumerated on the Certificate of Tax

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

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

and 15% tax on interest income under the expanded foreign currency deposit (a)Certification from their depository banks as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax

system imposed by Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended;

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

(c)Board Resolution by the school administration on proposed projects (i.e. construction and/or improvement of school buildings and facilities, acquisition

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 15th day of the fourth month

following the end of its taxable year (Sec. 4, Finance Department Order No.

137-87)2

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H of the NIRC,SAN LORENZO RUIZDIOCESAN ACADEMY.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 SAN LORENZO RUIZ DIOCESAN ACADEMY

INC. are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX

SAN LORENZO RUIZ DIOCESAN ACADEMY.INC.is subject to income tax on all its

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption

O

San Lorenzo Rui Diocesan Academy, Inc. Page 3 of 3 Date issuedAi5 21 CTE No.SH0032020

Moreover, it is subject to the corresponding internal revenue taxes imposed under National Internal

Revenue Code of 1997,as amended,as amended,on its income derived from any of its properties,real

or personal, or any activity conducted for profit, which income should be returned for taxation, unless

said revenues are actually, directly and exclusively used for educational purposes.

2 VALUE ADDED TAX/PERCENTAGE TAX

If SAN LORENZO RUIZ DIOCESAN ACADEMY,INC.is engaged in the sale of goods or

services in the course of a business pursuit, including transactions incidental thereto, its revenues 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)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties

or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

3)WITHHOLDING TAX

SAN LORENZO RUIZ DIOCESAN ACADEMY,INC. shall be constituted, as withholding agent for the government if it acts as an employer and its employees receive compensation income subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the National Internal

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 Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as

implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES&RESPONSIBILITIES

1 SAN LORENZO RUIZ DIOCESAN ACADEMY INC. is required to file on or before the 15th

expenses incurred during the preceding period and a certificate showing that there has not been any day of the fourth month following the end of the accounting period a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and

change in its By-laws, Articles of Incorporation, manner of 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.

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of

existing general and special law to the contrary notwithstanding, the books of accounts and other

pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to 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.

3) 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).

4)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.