BIR Ruling No. 498-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. SH30-0498-2026

CERTIFICATE OF TAX EXEMPTION

issued to

SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,INC. San Marcelino, Zambales 2207

TIN: SEC Company Reg. No.

has proven by actual operation that its primary purpose is one of those enumerated under Section 30(H) 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 and

2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores 1. Tuition, Registration and Miscellaneous Fees; and OF SAN MARCELINO, INC., to be actually, directly and exclusively used for educational purposes. located within its premises, owned and operated by SAINT WILLIAM'S SCHOOI

nothing follows

and responsibilities stated in the Terms and Conditions hereto attached and made an integral part subject to the provisions of applicable BIR rules and regulations and the tax exemptions, liabilities hereof. It is liable, however, to all other taxes not enumerated above.

conditions herein set forth. It shall likewise be revoked if there are material changes in the character, violation of any provisions of applicable 'rules and regulations of the BIR, or the terms and purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption. This certification shall be valid from the date of issuance until revoked by this Office for

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 documents

Issued this day of_SEP 0 8 2020

ie&amw

CAESAR R.DULAY

K-1/spf180902 Commissioner of Internal Revenue 036432

Page 2 of 3 Saint William's School of San Marcelino, Inc. CTE No. Date issued S30-0498-2020 SEP 0 8 2020

TERMS AND CONDITIONS

OF THE CERTIFICATE OF TAX EXEMPTION

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

TAX EXEMPTION 1) INCOME TAX. SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,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 to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to Wit:

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

SAINT WILLIAM'S SCHOOL OF SAN MARCELINO. INC.'s interest 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 15%' tax under the expanded foreign currency deposit system imposed under

compliance with the conditions that as a tax-exempt institution it shall on an annual basis Section 27(D)(1) of the National Internal Revenue Code of 1997, as amended, subject to submit to the Revenue District Office concerned an annual information return and duly audited

financial statement together with the following:

a Certification from their depository bank as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and

15% 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-

8

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the National Internal Revenue Code of 1997, as amended, SAINT WILLIAM'S

SCHOOL OF SAN MARCELINO,INC.'s gross receipts from operations as a non-stock,

non-profit educational institution are exempt from VAT. Moreover, revenues derived from

assets used in the operation of cafeterias/canteens, dormitories and bookstores located within

the premises of SAINT WILLIAM'S SCHOOL OF SAN MARCELINO, INC. are exempt

from taxation provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,INC.is subject to income tax on

all its income/receipts/revenues not expressly exempted and stated in the Certificate of

Q

1 Republic Act No. 10963 increased the tax rate.from 7.5% to 15% effective Jan. 1, 2018

2 Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

Saint William's School of San Marcelino,Inc. Page 3 of 3 CTE No. Date issued CH30-0498-2020 SEP 0 8 2020

under National Internal Revenue Code of 1997, as amended, on its income derived from any returned for taxation, unless.said revenues are actually, directly and exclusively used for educational purposes. Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed of its properties, real or personal, or any activity conducted for profit, which income should be

2) VALUE ADDED TAX/PERCENTAGE TAX such sales exceed Three Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. If SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from

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 and107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,INC. shall be constituted as 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 National Internal amended. 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, Title II of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue

1) SAINT WILLIAM'S SCHOOL OF SAN MARCELINO,INC. is required to file on or TAXPAYER DUTIES & RESPONSIBILITIES and activities as well as sources and disposition of income. Copy of this Certificate of Tax there has not been any change in its By-laws, Articles of Incorporation, manner of operation Exemption shall be attached to the aforementioned Annual Information Return. 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 its gross income and expenses incurred during the preceding period and a certificate showing that

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 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. other pertinent records of tax-exempt organization or grantees of tax incentives shall be subject

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 Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial Circular No. [RMC] No. 76-2003). 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.

2018 3 Republic Act No.10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan.