BIR Ruling No. 277-2018

REPUBLICO THE FHILIPPINES

DEPARTMENT OFFINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

277-2018

CERTIFICATE OF TAX EXEMPTION

issued to

BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED M.H.Del Pilar Street,Tanay,1980 Rizal 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

I. Tuition Fees, Registration Fees, Miscellaneous Student's Assessments: 2. Donations; and 3. Income derived from operation of cafeterias/canteens, dormitories and bookstores

SCHOOL OF TANAY INCORPORATED,to be actually, directly and exclusively used for educational purposes. located within its premises, owned and operated by BLESSED HOPE CHRISTIAN

othing 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 from the date of issuance until revoked by this Office for violation of any provisions of applicable rules and regulations of the BIR, or the terms and

basis for its income tax exemption. character, purpose or method of operation of the corporation which are inconsistent with the conditions herein set forth. It shall likewise be revoked if there are material changes in the

documents as represented and submitted. However. if upon investigation. the BIR aseertains 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 FEB 2 7 2018

ta8oni CAESAR R.DULA

K-I-MCUS Commissioner of Internal R 0"1^3`5"89

Blessed Hope Christian School of Tanay Ine CTE No. 277-2010 Page 2 of3 Date issued 2-27-.2018

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

D) INCOME TAX.BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED 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:

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

and exclusively in pursuance of its purpose as an educational institution. are exempt from the 20% final tax and 15%' tax on interest income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 1997. as amended. BLESSED HOPE CHRISTIAN SCHOOLOF TANAY INCORPORATED's interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly

audited financial statement together with the following: annual basis submit to the Revenue District Office concerned an annual information return and duly subject to compliance with the conditions that as a tax-exempt educational institution it shall on an

(a) Certification from their depository banks as to the amount of interest income earned from passive investment not subject to the 20% final Internal Revenue Code of 1997. as amended: withholding tax and 15% tax on interest income under the expanded foreign currency deposit system imposed by Section 27 (D) (1) of the National

Certifieation 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 l09(H) of the NIRC. BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED's

gross receipts from operations as a non-stock. non-profit educational institution is exempt from VAT

LIABILITY FOR INTERNAL REVENUE TAXES

DINCOME TAX

BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED is subject to income tax on all its income/receipts/ revenues not expressty exempted and stated in the Certificate of Tax Exemption. Moreover. it is subject to the corresponding internal revenue taxcs imposed under the NIRC on its income derived from any of its properties. real or personal. or any

Blessed Hope Christian School of Tanay Ine. Page 3 of 3 CTE NO. Date issued 2-27-2018 277.2018

activity conducted for profit. which income should be returned for taxation. unless said revenues are actually. directly and exclusively used for educationat purposes. 2) VALUE ADDED TAX /PERCENTAGE TAX.

(P1.919.500.00). or to the 3% percentage tax, if gross receipts do not exceed P1.919.500.00.3 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 such sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos If BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED is engaged in the

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 l06 and 107 of the NIRC.

3)WITHHOLDING TAX.

as withholding agent for the government if it acts as an employer and its employees receive the NIRC. as implemented by Revenue Regulations No.2-98. as amended. or if it makes ineome compensation income subject to the withholding tax under Section 79 (A). Chapter Xill. Title II of 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 BLESSEDHOPE CHRISTIAN SCHOOLOFTANAY INCORPORATED shal be constituted

TAXPAYER DUTIES & RESPONSIBILITIES

1) BLESSED HOPE CHRISTIAN SCHOOL OF TANAY INCORPORATED is required to file on or before the 1 5th 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 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. gross income and expenses incurred during the preceding period and a certificate showing that there

2) Under Section 235 of the NIRC. any provision of existing general and special (aw to the contrary notwithstanding. the books of accounts and other pertinent records of tax-exempt organization or compliance with the conditions under which it has been granted tax exemptions or tax incentives. grantees of tax incentives shall be subject to examination by the BIR for purposes of ascertaining 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 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 PhP500.00 as prescribed in Section 236(B)

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

3 VAT threshold is now P3.000.000 effective January 1. 2018 under Sec. 34. RA No. 10963 also known as the TRAIN