BIR Ruling No. 328-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OFINTERNAL REVENUE

Quezon City.

Certificate of Tax Exemption 328-2017

certiFicAtE OF tAX eXeMPtion

issued to

ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE

PHILIPPINES.INC 180 National Highway,Rizal District,Tagudin,2714 Ilocos Sur

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 INCOME TAX only on the following revenues or receipts

1. Tuition Fees; 2 3. Grants and/or subsidies from concerned government and private entities; and Other income from correlated activities and incident to its primary

educational function.

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.

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 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 basis for its income tax exemption.

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 ofUN 3020

MEemw

K-1/spf Commissioner of Internal Revenue CAESAR R.DULAY 007451

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TERMS AN D 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.ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE PHILIPPINES, INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44- 2016, to wit:

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

ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE PHILIPPINES

information return and duly audited financial statement together with the following: used actually.directly and exclusively in pursuance of its purpose as an educational institution,are exempt from the 20% final tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section 27(D(1of 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 INC.'s interest income from currency bank deposits and yield from deposit substitute instruments

of 1997, as amended; (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

(bCertification of actual utilization of the said income: and

(c)Board Resolution by the school administration on proposed projects (i.e.. of equipment, books and the like) to be funded out of the money deposited in following the end of its taxable year (Sec. 4, Finance Department Order No. construction and/or improvement of school buildings and facilities, acquisition banks or placed in money markets,on or before the 15th day of the fourth month 137-87)

2 VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section THE PHILIPPINES, INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT. 109(1)(H) of the NIRC, ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF

LIABILITY FORINTERNALREVENUETAXES

1) INCOME TAX

stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE PHILIPPINES INC. is subject to income tax on all its income/receipts/ revenues not expressly exempted and

Denartment Order No. 149-95 dated Novemher 24 1995 amendina Denartment Order No 137-87

41

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revenue taxes imposed under NIRC, as amended, on its income derived from any of its 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

If ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE PHILIPPINES. transactions incidental thereto, in general, it shall be liable for VAT on the revenues derived INC. is engaged in the sale of goods or services in the course of a business pursuit, including

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.

3) WITHHOLDING TAX

employees receive compensation income subject to the withholding tax under Section 79 (A). Chapter XIII, Title II of the NIRC,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 INC. shall be constituted as withholding agent for the government if it acts as an employer and its ASEAN INSTITUTE FOR RESAERCH AND TECHNOLOGY OF THE PHILIPPINES

pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) ASEAN INSTITUTE FOR RESEARCH AND TECHNOLOGY OF THE PHILIPPINES a certificate showing that there has not been any change in its By-laws, Articles of Incorporation. Return under oath, stating its gross income and expenses incurred during the preceding period and 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 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 it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. examination by the BIR for purposes of ascertaining compliance with the conditions under which

3) Further, it is also required under Section 6(C in relation to Section 237 of the National Internal No. [RMC] No. 76-2003). 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 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 Section 236(B) of the National Internal Revenue Code of 1997, as amended.