BIR Ruling No. 557-2018

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 557-2018

CERTIFICATE OF TAX EXEMPTION

issued to

"MANTO NIN PAGKAMOOT"CHILDREN'S

# 445 Dimasalang St., Sta. Cruz. Naga City 4400 SEC Company Reg. No. FOUNDATION,INC. TIN:

primary purpose is one of those enumerated 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 has proven by actual operation that its

1.Grants and Pledges.

nothing follows.

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. subject to the provisions of applicable BIR rules and regulations and the tax exemptions,

earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR, or the terms and conditions herein set forth. This certification shall be vaiid for three (3) years from the date of issuance unless

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period. 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. APR 0 2 2018

1eeanNm

K-I-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 014883

"MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATIONINC Date issued_APR g 2 201B CTE No. 557-20

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

D) INCOME TAX.

Certificate of Tax Exemption. Moreover, to be entitled to the tax exemption enumerated herein, the association/corporation/organization must continue to meet the requirements set "MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC. is onty exempt from the payment of income tax only on revenues and receipts enumerated on the forth under Revenue Memorandum Order (RMO) No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX

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 revenue taxes imposed under the National Internal Revenue Code of 1997, as amended, on its Thus, its income derived from Livelihood Projects and Special Events shall be subject "MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC. is subject to income derived from any of its properties, reai or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. to income tax.

to Sec.'57(A) both of the National Internal Revenue Code of 1997, as amended. 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 depository bank under the expanded foreign currency deposit system shall be subject to fifteen percent(15%')final withholding income tax pursuant to Section27(D(1) in relation Likewise, interest income from currency bank deposits and yield or any other monetary 20%) final withholding tax: Provided. however, that interest income derived by it from a

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

(12%) VAT, in case the gross receipts from such sales exceed Three Million Pesos exceed Three Million Pesos (3,000,000.00) 1f "MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC. is engaged incidental thereto, its revenues derived therefrom shall be subject to the twelve percent (P3,000.000.00)2, or to the three percent (3%) percentage tax, if gross receipts do not in the sale of goods or services in the course of a business pursuit, including transactions

or properties or services and importation of goods shall nevertheless be subject to the twelve percent (12%) VAT pursuant to Sections 106 and 107 of the National Internal Notwithstanding the fact that it is a non-stock, non-profit corporation, its purchase of goods Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

constituted as withholding agent for the government if it acts as an employer and its implemented by Revenue Regulations No.2-98. as amended. or if it makes income "MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC. shall be employees receive compensation income subject to the withholding tax under Section 79 A,Chapter XIII,Title ll of the National Internal Revenue Code of 1997.as amended, as

Republic Act (RA) No. 10963 increased the VAT threshold from Pi.919.500.00 to P3.000.000.00 effective Republic Act (RA) No. 10963 increased the tax rate from 7.5% to 15% effective January 01, 2018 January 01.2018

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"MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC Date issuedAPRZUB CTE NO. 557-201.8

57 of the National Internal Revenue Code of 1997, as amended, as implemented by payments to individuals or corporations subject to the withholding tax pursuant to Section Revenue Regulations No. 2-98, as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

1)"MANTO NIN PAGKAMOOT" CHILDREN'S FOUNDATION, INC. is required to 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 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 file on or before the 15th day of the fourth month following the end of the accounting period certificate showing that there has not been any change in its By-laws, Articles of Annual Information Return.

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any 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 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, and its tax liabilities, if any.

3) Further, it is also required under Section 6 (C) in relation to Section 237 of the Nationa! Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or are not directly related to the activities for which the Association is registered.3 commercial invoices for each sale or transfer of merchandise or for services rendered which

4) Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.

A K-I-LMAT

3 Revenue Memorandum Circular (RMC) No. 76-2003

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