BIR Ruling No. 381-2017

BUREAU OF INTERNAL REVENUE RI PUSLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 381-2017

CERTIFICATE OF TAX EXEMPTION issued to

ABS-CBN LINGKOD KAPAMILYA FOUNDATION, INC. Mother Ignacia St.., South Triangle, Quezon City SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose falls 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: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Donations.

-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 AUG 2 2 2012

gueamea

Commissioner of Internal Revenue CAESAR R. DULAY 008845 K-1-JAC

ABS-CBN Lingkod Kapamilya Foundution, Inc. Page 2 of 3 CTE No. Date issued 8-22-2017 381-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. ABS-CBN LINGKOD KAPAMILYA FOUNDATION, INC. is only herein, the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No.20-2013. Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated exempt from the payment of income tax on revenues and receipts enumerated on the

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

on all its income/receipts/revenues not expressly exempted and stated in the Certificate of activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. ABS-CBN LINGKOD KAPAMILYA FOUNDATION,INC. is subject to income tax Tax Exemption. Moreover,it is subject to the corresponding internal revenue taxes imposed under the NIRC on its income derived from any of its properties, real or personal, or any

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 NIRC. 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 Likewise, interest income from currency bank deposits and yield or any other monetary

2 VALUE ADDED TAX

If ABS-CBN LINGKOD KAPAMILYA FOUNDATION,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 VAT on the revenues derived therefrom.

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 NIRC.

3WITHHOLDING TAX

it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, as implemented by Revenue Regulations No. 2-98. as amended compensation income subject to the withholding tax under Section 79 (A), Chapter XIII. ABS-CBN LINGKOD KAPAMILYA FOUNDATION,INC.shall be constituted as withholding agent for the government if it acts as an employer and its employees receive Title II of the NIRC,as implemented by Revenue Regulations No.2-98.as amended, or if

ABS-CBN Lingkod Kapamilya Foundation, Inc. Page 3 of 3 CTE No. Date issued 8m222017 3812017

TAXPAYER'S DUTIES & RESPONSIBILITIES

showing that there has not been any change in its By-laws, Articles of Incorporation. ABS-CBN LINGKOD KAPAMILYA FOUNDATION, INC. is required to file on or Information Return. before the 15th 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 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

2) Under Section 235 of the NIRC, any provision of existing general and special law to the 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. contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt

3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC to which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76- 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 2003)

4) Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIRC