BIR Ruling No. 736-2019

REPY BLIC OF THE PHILIPPINES

DE PARTMENT OF FINANCE BUREAU: OF INTERNAL REVENUE

Quezon City

Certiticate of Tax Exem ption No.

Q730 -2019

CERTIFICATE OF TA X EXEMPTION

issued to

KAPAYAPAAIN VILLAGE CHRISTIAN CHURCH, INC Bik 42 Lot 12 & 14 Kapayapaan Village, Canlubang SEC Corr.pany Reg. No. . C..lIamba Laguna 402:8 TN:

and has proven by actual operation t:at i'ts prirnary purpose falls under Section 3c (E) of the Nationai Iternal Revenue Code (NI?C) of 159?, as ar.iended. It is exempt from INCOME TAX only on the following revenues :r receipts: Ths certifies that the above-r amed corporation is a ron-stock, non-profit corporation

1. Donatiens and Contribu iou3: anc Z.Tithes an i Offerings. -rothing follows-

subject to the provisicns cf applicaile BIR rules and regulatioas and the tax ekemp:ions. liabilities and respens.ibilities stated i.: the Terms and Cenditions iereto attached arid m:a le an integral part hereof. it is liabie, howe 'ver, to all other taxes not erumerated above.

earlier revoked by this Office for vioia. :ion of any prcvisions of applicable rules and regula.tions of BIR, or the terms and conditions h:rein set forth. Th.s certification shall be va.d for three (3) years from the date of issuance unless

Certificate shail be deemed a revoc:tion thereof upon the expiration of the three (3:-year period. provided under Re-enue Memoranc.im Order RMO) No. 20-2013. Failure to renew this Th.s Certific ate may be renew d upon filing of a s absequent application for revalidaticn

documents as represented and submiued. However, if upon investigation, the BIR ascertains that the facts are different, then this Certifieate shall be considereci null and void. This Cerificate of Tax Exetpiion is being issued-on the basis of the fact: ard

Issued this .. day of [EC 1 9 2015

HeLSy

CAESAR R. DULAY

K-1-JAC Commissioner of Internal Reveriue :031140

Kapayapaun Village Christian Church, Inc. Page 2 of 3 Date issued TEc i : 2 CTEN. 5 3 3t - 2 0 19

TERM:S AND CONDITIONS GF THE CERT: FICATE OF TAX EXEMPTION

TAX EXEMPTIOS

1) INCCIME TAX. KAPAYAPAA VILLAGE.CHRISTIAN CHURCH INC. iS Orly

exernpt from the payment of inc ome tax on revenaes and receipts enumerated on the Certificate of Te.x Exemption. Me reover, to be entitl ed to the tax exemptions enumerated herein, the association/corporatio.:/ organization must continue to meet the recuirements set forta under Revenue Memorar. dum Order No. 20-2013.

LIABILITY FOR INTERNAL RE!ENUE TAXES

1) INCOME TAX

KAPAYAPAAN VILLAGE CH RISTIAN CHURCH, INC., is subject to incorne tax on all its income/receipts/revenues nat expressly exempted and stated in the Certificate o: Tax Exemption. Moreover, it is subje.t to the corresponting intenal revenue taxes imposed under the National Internai Revent.e Code of 1997, as amended, on its income derived from any of :ts properties, real or persoi:al, or any activity eonducted for profit regardless cf the disposition thereof, which income shoald be returned for taxat'on.

Likewise, interest income from c..rrency bank deposits and yield or any other monetary benefits from deposit substitute in::trurents and from trust funds and similar arrangements. and royaities derived from source:. within the Philippines are subject to the twenty percent (20%) inal withholding tax: Prov:ded, however. that interest income derived by it from a depository bank under the expanaed foreign currency deposi: system shall be subject to fifteen oercent (: 5%)' final withhciding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) bcth. of the National Internal Revenue Code of 1997, as amended

2) VALUE ADDED TAX/PERCENTAGE TAX

If KAFAYAPAAK VILLAGE CHRISTIAN CHURCH IIC.is engaged in the st.le of goods or services in the course f a business pursuit, including transactions incidental thereto. its reverues derived there-rorri shall be subjeet to the 12% VAT. in case the gross receipts from such sales exceed Three Million Pesos (P3,00,000.00)2, or to the 3% percentage tax. if gross receipts dc. not exceed P3.000,000.00.

Notwitastanding that it is a non-:tock, nor.-prcfit corporation, its purchase of goo:ls or properties or services and import.tion of goods shali nevertheless be subject to the 12% VAT parsuant to Sections 106 and 107 of the Nation:l Internal Revenue Code of 1997, as. amended.

3) WITHHOLDING TAX

KAPAYAPAAN VILLAGE CHRISTIAN CHURCH INC. shall be constituted as withhoiding agent for the governrient if it acts as an employer and its employees re-eive compensation ircome subject to tne withholding tax under Section 79 (A), Chapter XIII. Titie HI of the National Internal R evenue Code of 1997, as arnerded, as implemented by Revente Regulations No. 2-98, as amended. or if it makes inceme payments to indiviluals or corporations subject tc the w .hholding tax pursuant to Section 5"' of the National Internai Revenue Code of 1997, as amended, as implemented Ey Revenue Regulations No. 2-98. as amended.

Page 3 of 3 Kapayapaan Village Christian Churc , Inc. Date issued_nFC_g.9..20 CTE No.4 7.3_6 - 2 0 19

iRepubli: Act No. 10963 i:1creassd the tax rat.: from 7.5% to 15% effeciive January 1, 2018. Republic Act No. 10563 i.icreased the VAT 1:reshold fron: P1,9:9,500.00 to P3,000,000.00 effective Jant.ary 1. 2013.

TAXPAYER'S DUTIES & RESPOI SIBILITIES

} K4PAYAPAAN_VILLAGE CHRISTIAN_CHURCH,INC. is required to file on or before the 15th day of the fourth msnth following the end of the accounting period a Profit

and Loss Statement and Balance heet with the Annual Information Return under oath. stating its gross income and experises 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 aetivities 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 Revente Code of 1997, as amended, any

provisicn of existing general and s-ecial law to the contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt organization or grantees of tax incentives shali be subject to examination by the BIR for purposes of ascertaining compliance with tie conditions uader which it has been grarted tax exernpticns 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

Internai Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial invoices for each sale c: transfer of merchandise or for services rendered which

Memorandum'Circular No. [RMC: No. 76-2003). are not directly related to the activities for which the Association is registered. (Revenue

4) Finally, it is subjec: to the payment of registration fee of PhP 500.00 as prescribed in

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