BIR Ruling No. 266-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 266-2018

CERTIFICATE OF TAX EXEMPTION

issued to

IMMACULATE CONCEPTION ACADEMY Purok 1, Bone South, Aritao, Nueva Vizcaya 3704 OF BONE SOUTH ARITAO. INC. SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose is one of those enumerated under INCOME TAX only on the following revenues or receipts: Section 30(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from This certifies that the above-named corporation is a non-stock, non-profit corporation

2. Income derived from operation of cafeterias/canteens and bookstores located 1. Tuition fees and Other school fees; and

exclusively used for educational purpose. ACADEMY OF BONE SOUTH, ARITAO, INC., to be actually, directly and within its premises, owned and operated by IMMACULATE CONCEPTION

-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.

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 This certification shall be valid from the date of issuance until revoked by this Office

basis for its income tax exemption. character, purpose or method of operation of the corporation which are inconsistent with the

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 FEB 2 6 2013

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K-1 Commissioner of Internal Revenue CAESAR R.DULAY 013665

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TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution

TAX EXEMPTION

1)INCOME TAX. IMMACULATE CONCEPTIONACADEMYOFBONESOUTH to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44- ARITAO, 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 2016, to wit:

ji. Its revenues are actually, directly and exclusively used for educational purposes. 1 It is a non-stock, non-profit educational institution; and

system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 1997, as return and duly audited financial statement together with the following: amended, subject to compliance with the conditions that as a tax-exempt educational institution it income from currency bank deposits and yield from deposit substitute instruments 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 shall on an annual basis submit to the Revenue District Office concerned an annual information IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH.ARITAO.INC.'s interest

(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 of 1997, as amended:

(b)Certification of actual utilization of the said income; and

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

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(1)(H) of the NIRC,IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH

is exempt from VAT. ARITAO, INC.'s gross receipts from operations as a non-stock, non-profit educational institution

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH,ARITAO,INC.is Subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the

T

Immaculate Conception Academy of Bone South, Aritao, Inc. Page 3 of 3 CTE No.2662018 Date issued 2--26-2018

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. Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived from any of its properties, real or personal

2) VALUE ADDED TAX/PERCENTAGE TAX

(P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed P1,919,500.00. incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales is One Milfion Nine Hundred Nineteen Thousand Five Hundred Pesos If IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH. ARITAO. INC. is engaged in the. sale of goods or services in the course of a business pursuit, including transactions

or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the NIRC.

3.WITHHOLDING TAX

' 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. income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as amended. IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH,ARITAO,INC. shall be Title II of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes

TAXPAYER DUTIES & RESPONSIBILITIES

1) IMMACULATE CONCEPTION ACADEMY OF BONE SOUTH,ARITAO,INC. is required 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 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. Exemption shall be attached to the aforementioned Annual Information Return. and activities as well as sources and disposition of income. Copy of this Certificate of Tax

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 related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003). 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

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.