BIR Ruling No. 79-2020

REPUBLICOFTHE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

SH30-011-2020

CERTIFICATE OFTAXEXEMPTION

issued to

SERGIA G.ESGUERRA MEMORIAL FOUNDATION,INC. Brgy. 830, Zone 90, District V, Manila 1011 Foot of Nagtahan Bridge, Pandacan. SEC Company Reg. No. TIN:

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 INCOME TAX only on the following revenues or receipts. This certifies that the above-named entity is a non-stock, non-profit corporation and has

3 4 I Y Income derived from the operation of cafeterias/canteens. Scholarship grants; Donations; and Tuition fees and other miscellaneous school fees;

operated by SERGIA G. ESGUERRA MEMORIAL FOUNDATION, INC. to be actually, directly and exclusively used for educational dormitories and bookstore located within its premises, owned and purposes.

nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

basis for its income tax exemption. 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 This certification shall be valid from the date of issuance until revoked by this Office

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However,if upon investigation, the BIR ascertains This Certificate 'of Tax Exemption is being issued on the basis of the facts and

Issued his day ofAN2 4 202

AaesoMwsy

CAESAR R.DULAY

KI-JESS K1-FR-18-0642 Commissioner of Internal Revenue 032343

SERGIA G.ESGUERRA MEMORIALFOUNDATION,INC Page 3 of 3 Date Issued: CTE No. SH30011-2020 JAN 24

National Internal Revenue Code of 1997, as amended, on its income derived from any of its Exemption.Moreover. it is subject to the corresponding internal revenue taxes imposed under the 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(VAT)/PERCENTAGE TAX

If SERGIA G.ESGUERRA MEMORIAL FOUNDATION,INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues

Three Million Pesos (P3,000,000.003) or to the 3% percentage tax, if gross receipts do not exceed P3.000.000.00. derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed

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

SERGIA G. ESGUERRA MEMORIAL FOUNDATION, 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 Revenue Code of 1997, as amended, as implemented by Revenue Regulations

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

TAXPAYER DUTIES & RESPONSIBILITIES

) SERGIA G.ESGUERRA MEMORIAL FOUNDATION. INC. is required to file on or 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 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 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 corporation is registered. (Revenue Memorandum Circular

No. [RMC] No. 76-2003).

4Finally,it is subject to the payment of registration fee of PhP500.00 as prescribed in Section236B

of the National Internal Revenue Code of 1997,as amended. O

3Republic Act No.1093 increased the VAT threshold fromP1,919,50.00 tc3.000,000.00effectiveJanuary 1,2018