BIR Ruling No. 264-2018

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE e Quezon City

Certificate of Tax Exemption No.

264-2018

CERTIFICATEOF TAXEXEMPTION

issued to

SUPERIOR OF THE MISSIONARY SISTERS OF ST.

#166 Maginhawa St., Sikatuna Village Diliman, Quezon City 1101 ANTHONY M. CLARET, INC. SEC Company Reg. No. TIN

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

1. 2 Donations; and Subsidies.

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.

of BIR, or the terms and conditions herein set forth. earlier revoked by this Office for violation of any provisions of applicable rules and regulations This certification shall be valid for three (3) years from the date of issuance unless

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period. provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

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_FFB 2 3.2018

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K-I-LMA7 Commissioner of Internal Revenue CAESAR R.DULAY 013567

SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M. CLARET. INC. Date issued 2--23-2018 CTE No. 264-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

1) INCOME TAX.

SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M. CLARET

enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax INC. is only exempt from the payment of income tax only on revenues and receipts

exemption enumerated herein, the association/corporation/organization must continue to meet the requirements set forth under Revenue Memorandum Order (RMO) No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

D INCOME TAX

SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M. CLARET INC. is subject to income tax on all its income/ receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1997, as amended, on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation.

Likewise, interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements. and royalties derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a depository bank under the expanded foreign currency deposit system shall be subject to seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internal Revenue Code of 1997, as amended.

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

If SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M. CLARET, 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 twelve percent (12%) VAT, in case the gross receipts from such sales exceed One

three percent (3%) percentage tax, if gross receipts do not exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00). Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the

Notwithstanding the fact that it is a non-stock, non-profit corporation, its purchase of goods or properties or services and importation of goods shall nevertheless 'be subiect to the twelve percent (12%) VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M. CLARET.

and its employees receive compensation income subject to the withholding tax under INC. shall be constituted as withholding agent for the government if it acts as an employer

Section 79 (A). Chapter XIII. Title II of the National Internal Revenue Code of 1997. as amended, as implemented by Revenue Regulations No. 2-98, as amended. or if it makes Section 57 of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended. income payments to individuais or corporations subject to the withholding tax pursuant to

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SUPERIOR OF THE MISSIONARY SISTERS OF ST. ANTHONY M.CL.ARET, INC. CTE NO. Date issued 2-23--2018 2642018

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) SUPERIOR OF THE MISSIONARY SISTERS OF ST.ANTHONY M. CLARET

INC. is required to file on or before the l5th 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 expenses incurred during the preceding period and a certificate showing that there has not been any 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

incentives shall be subject to examination by the BIR for purposes of ascertaining accounts and other pertinent records of tax-exempt organization or grantees of tax 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 PhP500.00 as prescribed in Section

236(B) of the National Internal Revenue Code of 1997. as amended.

&K-I-LMAT

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