BIR Ruling No. 380-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No 380=2017

CERTIFICATE OFTAXEXEMPTION

issued to

CHANNELOFHOPE FOUNDATIONINC 4677 Gilia Street, Sun Valley Subdivision. Barangay Sun Valley, Paranaque City 1700 SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose falls 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 is a non-stock, non-profit corporation

1. Donations. nothing follow:

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, 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.

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period.

This Certificate of Tax Exemption is being issued on the basis of the facts and 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.

Issued this day of-AUG 22 2017

0any

Channel of Hope Foundation, Inc. K-1VDPM14 Commissioner of Internal Revenue CAESAR R. DULAY 008846

CHANNEL OF HOPE FOUNDATION,INC Page 2 of 3 Date issued8-22--2017 CTE No. 3802017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1 INCOME TAX.CHANNEL OF HOPE FOUNDATION,INC.is only exempt Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the association/corporation/ organization must continue to meet the requirements set forth from the payment of income tax on revenues and receipts enumerated on the Certificate of under Revenue Memorandum Order No.20-2013.

LIABILITY FOR INTERNALREVENUE TAXES

1 INCOME TAX

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. income/receipts/revenues not expressly exempted and stated in the Certificate of Tax under the NIRC on its income derived from any of its properties, real or personal, or any CHANNEL OF HOPE FOUNDATION.INC.is subject to income tax on all its

seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 5'7(A) both of the NIRC. 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 percen depository bank under the expanded foreign currency deposit system shall be subject to 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

If CHANNEL OF HOPE FOUNDATION, 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 VAT 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% VAT pursuant to Sections 106 and 107 of the NIRC.

3) WITHHOLDING TAX

compensation income subject to the withholding tax under Section 79 (A), Chapter XIII Title II of the NIRC, as impleinented 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 NIRC, as implemcnted by Revenue Regulations No. 2-98, as withholding agent for the government if it acts as an employer and its employees receive CHANNEL OF HOPE FOUNDATION, INC. shall be constituted as

amended.

TAXPAYER'S DUTIES & RESPONSIBHLITIES

1) CHANNEL OF HOPE FOUNDATION,INC. is required to file on or before the 15th day of the fouith month following the end of the accounting period a Profit and Loss

Page 3 of 3 CHANNEL OF HOPE FOUNDATION, INC. Date issued 822m201? CTE No. 80-20 17

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 NIRC, 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

tax exemptions or tax incentives, and its tax liabilities, if any. purposes of ascertaining compliance with the conditions under which it has been granted

3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC 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 NIRC.