BIR Ruling No. 386-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Ouezon City

Certificate of Tax Exemption No.

386-2017

CERTIFICATE OF TAX EXEMPTION

issued to

SOCIAL BRETHREN CHURCH,PHILIPPINES.INC

#7.Octagon St.Dela Paz. Pasig City SEC Company Reg. No. TIN

This certifies that the above-named corporation has proven by actual operation that its 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:

I. 2 3 Contributions; and Donations. Offerings:

nothing follow.

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 for three (3) years from the date of issuance unless 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 Certificate may be renewed upon filing of a subsequent application for revalidation provided under Revenue Memorandum Order (RMO) No. 20-20i3. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period

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

that the facts are different, then this Certificate shall be considered null and void.

Issued this day of_AUG 3 0 2017

Commissioner of Internal Revenue CAESAR R. DULAY

K-1-LMAT WhC

CELIA C.KINGO Deputy Commissioner Resource Management Group

Officer-In-Charge

SOCIAL BRETHREN CHURCH, PHILIPPINES,INC. CTE No. Date issued 386--2017 -302017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

1) INCOME TAX.

SOCIAL BRETHREN CHURCH, PHILIPPINES, INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption provided, that no part of its net income or asset shall belong to, or inure to the benefit of any member, organizer, officer or any specific person.

LIABILITY FOR INTERNALREVENUE TAXES

D INCOME TAX

SOCIAL BRETHREN CHURCH,PHILIPPINES,INC.is subject to 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 income derived from any of its properties,real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation.

benefits from deposit substitute instruments and from trust funds and similar arrangements Likewise. interest income from currency bank deposits and yield or any other monetary depository bank under the expanded foreign currency deposit system shall be subject to 27D)1) in relation to Sec. 57A) both of the National Internal Revenue Code of 1997, as 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 seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section

amended.

2) VALUE ADDED TAX

If SOCIAL BRETHREN CHURCH,PHILIPPINES,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 value added tax 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% value added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

SOCIAL BRETHREN CHURCH, PHILIPPINES, 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, Revenue Regulations No.2-98.as amended, or if it makes income payments to individuals Title II of the National Internal Revenue Code of 1997,as amended, as implemented by

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

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) SOCIAL BRETHREN CHURCH,PHILIPPINES,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

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SOCIAL BRETHREN CHURCH PHILIPPINES,INC Date issued 8302017 CTE NO. 386m2017

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 Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003).

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.

K-I-LMAT

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