BIR Ruling No. 558-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

13 Certificate of Tax Exemption No.

558-2017

CERTIFICATE OF TAX EXEMPTION

issued to

KULIAT FOUNDATION, INC. Old City Hall, Sto. Rosario St., Angeles City

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 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:

1. Grants, Donations and Fees.

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 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 dccmed 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 DEC 0 6 2017

reusomw CAESAR R. DULAY Commissioner of Internal Revenue 011466 K-I-spt

KULIAT FOUNDATION. ING. CTE NO 0AT Page 2 of 3 Date issued 12-E-20 17

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. KULIAT FOUNDATION INC. is oniy exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover. to be entitled to' the tax exemplions enumerated herein. the association/corporation/ organization must continue to meet the requirements set forth under

Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

KULIAT FOUNDATION,INC.is subjecttoincome tax ona 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 activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. under'the NIRC on its income derived from any of its properties. real or personal, or any

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

2) VALUE ADDED TAX/PERCENTAGE TAX

(P1.919.500.00). or to the 3% percentage tax. if gross reccipts do not exceed P1.919.500.00. course of a business pursuit, including transactions incidental thereto, its revenues derived exceed One Million' Nine Hundred Nineteen Thousand Five Hundred Pesos If KULIAT FOUNDATION INC. is engaged in the sale of goods or services in the therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales

Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or VA'T pursuant to Sections 106 and 107 of the NIRC. properties or services and importation of goods shall nevertheless be subject to the 12%

3) WITHHOLDING TAX

KULIAT FOUNDATION, 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 XHI, Title II of the NIRC, as implemented by Revenuc 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 implemented by Revenue Regulations No. 2-98. as amended.

KUIAT FOUNDATIONINC. Page 3 of 3 Datc issucd12-6-2017 CTF NO. 5582017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) KULIAT FOUNDATION INC. is required to file on or before the 15th day of the fourth attached to the aforementioned Annual Information Return. 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 month following the end of the accounting period a Profit and Loss Statement and Balance

2) Under Section 235 of the NIRC, any provision of existing general and special law to thc 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 NIRC to issue duly registered'receipts or sales or commercial invoices for each sale or transfer of 2003) merchandise or for services rendered which are not directly related to the activities for which thc Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-

4} ) Finally. it is subject to the payment of registration fee of PhP 500.00 as prescribed in

Section 236(B) of the Nationai Internal Revenue Code of 1997. as amended.