BIR Ruling No. 437-2017

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE: BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

3-07

CERTFICATE OF TAX EXEMPTION

issued to ST. LOUIS SCHOOL OF DON BOSCO, INC National Highway. Calindagan. Dumaguete City, Negros Oriental 6200

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 INCOMH TAX only on the following revenues or receipts:

I Tuition fees and Other school fees: and 2 Income derived from the operation of canteen and bookstores iocated

within its premises, owned and operated by ST. LOUIS SCHOOL OF DON BOSCO, INC. to be actually, directly and exclusively used-for educational purposes.

nothing follow

liabilities and responsibilities stated in the Terms and Conditions hereto atlached 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 othcr 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 tetms and

character. purpose or method of operation of the corporation which are inconsistent with the conditions herein set forth. It shall likewise be revoked if thcre are material changes in the

basis for its income tax exemption.

This Certificate of Tax Excmption is being issued on the basis of the Yacts and documents as represented and submitted. However, if upon investigation. the BIR ascertains that the facts are different. then this C'ertificate shall be considered null and void. Issued this. day of Lt I'? *

CAESAr R. DULAY

K-}I spf Commissioner of Internal Revenue

W

Pagc 2 of 3 St. Louis Schoot of Don Bosco. Inc. CTE NO. Datc issued +7-X

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

For Non-Stock. Non-Profit Educational Institution under Section 30(H) of the National Internal Revenue Code of 1997. as Amended

TAX EXEMPTION

D) INCOME TAX.

ST. LOUIS SCHOOL.OF DON BOSCO INC. is exempt from the payment of income tax onty on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the schoo! must continuc to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

H1. Its revenues arc actually, directly and exclusively used for educational purposes. It is a non-stock. non-profit educational institution: and

ST.LOUIS SCHOOL OF DON BOSCO, INC.'s interest income from currency bank deposits and yield from deposit substitute instrumcnts used actually. directly and exclusively in pursuance of its purpose as an educational institution, are exempt from the 20% finai tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section 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 Revenue District Office concerned an annual information return and duly audited financial statement together with the following:

(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 and 7 1/2% tax on interest income under the expanded foreign currency deposit 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 i 5th day of the fourth month fotlowing the end of its taxable year (Sec. 4. Finance Department Order No. 137-87}'

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES

Pursuant to Section 109(1)(H) of thc NIRC ST.LOUIS SCHOOL OF DON BOSCO INC.3s gross receipts from operations as a non-stock, non-profit educational institution is exempt from V AT.

1 Department Order No. 149-95 dated November 24. 1995 amending Department Order No. 137-87

Page 3 of 3 St. Louis Schoot of Don Bosco, me CIE No. 1atc issued 9-6-2017 437-2017

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

ST. LOUIS SCHOOL OF DON BOSCO, 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 revenuc taxes imposed under NIRC. as amended. on its income derived from any of its properties. real or personal, or any activity conducted for protit. which income should be returned for taxation, unless said revenues are actually. directly and exclusively used for educational purposes.

2) VALUE ADDED TAX

If ST.LOUIS SCHOOL OF DON BOSCO, INC. is engaged in the sale of gOods or services in the course of a business pursuit. including transactions incidental thereto. in general. it shall be liable for VA'! on the revenues derived therefrom.

Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or propertics or services and importation of goods shali nevertheless be subject to the +2% VAT pursuant to Sections 106 and 107 of the NIRC.

3) WITHHOLDING TAX

government if it acts as an employer and its employees receive compensation incomc subject to the ST. LOUIS SCHOOL OF DON BOSCO,INC. shall be constituted as withholding agent for the

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

TAXPAYER DUTIES & RESPONSJBILITIES

1) ST.LOUIS SCHOOL OF DON BOSCO, INC, is required to file on or before the l5th day of thc aforementioned Annuat Information Rcturn. change in its By-laws. Articies of Incorporation. manner of operation and activities as well as Sources and disposition of income. Copy of this Certificate of Tax Fxemption shall be attached to the fourth month following the end of the accounting period a Profit and Loss Statement and Balance Sheet with thc Aunual Information Return under oath. stating its gross income and expenscs incurred during the preceding period and a certiticate showing that there has not becn any

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

3) Further, it is also required under Scction 6(C) in retation to Section 237 of the National Internal 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). Revenue Code of 1997. as amended, to issue duly registered receipts or sales or commercial

4)Finally. it is subject to the payment of registration fee of PhP 500.00 as prescribed in Scction 236(B) of the National Internal Revenue Code of 1997. as amended.