BIR Ruling No. 525-2017

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

Certificate of Tax Exemption No. 55-017

CERTIFICATE OF TAX EXEMPTION

issued to HOLY CHILD PARISH SCHOOL OF ISABEL, INC A. Bonifacio St., Brgy. Sto Nino. Isabel. Leyte SEC Company Reg. No. TIN

and 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

2 Income derived from the operation of "cafeterias/canteens and bookstores Tuition Fees & Other School Related Fecs; and Iocated within its premises, owned, and operated by Holy Child Parish School of Isabel, Ine. to be actually, directly and exclusively used for educationat purposes.

nothing 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.

for viofation of any provisions of applicablc rules and regulations of the BIR. or the terms and conditions herein set forth. It shall tikewise be revoked if there are material changes in thc character, 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

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 NOV 1 7.2017

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Commissioner of Internal Revenue CAESAR R. DULAY 01123 5

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HOLY CHILD PARISH SCHOOL OF ISABEL, INC. (CTE NO. 0

Date issued ..

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1)INCOME TAX

tax oniy 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 HOLY CHILD PARISH SCHOOL OF ISABEL, INC. is exempt from the payment of income Menorandum Order (RMO) No 44-2016. to wit:

b) Its revenues are actually. directiy and exclusively used for educational } It is a non-stock, non-profit educational institution; and

purposes.

deposits and yield from deposit substitule instruments used actually, directly and exclusively in 27 (D) (1) of the National Internal Revenue Code of 1 997. as amended, subject to compliance with pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 I 2%. Revenue District Office concerned an annual information return and duly audited financial statement together with the following: HOLY CHILD PARISH SCHOOL OF ISABEL, INC.'s interest incoine from currency bank tax on interest income under the expanded foreign currency deposit system imposed under Section the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the

a) Certification from their depository banks as to the amount of interest income of 1997. as amended; 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 earned from passive investment not subject to the 20% tinal withholding tax

b) Certification of actual utilization of the said incone; and

C) Board Resolution by the school administration on proposed projects (i.c.. construction and/or improvement of school buildings and facitities, 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(H) of the National Internal Revenue Code of 1997. as amended. HOLY CHILD PARISH SCHOOL OF ISABEL, INC.'s gross receipts from operations aS a non-Stock. non-profit educational institution are exempt from VAT.

LIABILITY FOR INTERNAL REVENUE TAXES

() INCOME TAX

income/receipts/revenues not expressty exempted and stated in the Certificate of Tax properties. rcal or personal. or any activity conducted for profit, which income should be returned HOLY CHILD PARISH SCHOOL OF ISABEL, INC. is subject to income tax on all its National internal Revenue Code of 1997. as amended, on its income derived from any of its Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the

1 Departiment Order No. 149-95 dated November 24. 1995 amending Department Order No. 137-87

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HOLY CHILD PARISH SCHOOL OF ISABEL, INC. Date issued 11m172017 CTE Na._525=20 17

for taxation. unless said revenues are actually. directly and exclusively used for educational purposes.

2) VALUE ADDED) TAX(VAT)

shall be liable for VAT on thc revenues derived therefrom. 1f HOLY CHILD PARISH SCHOOL OF ISABEL, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto. in general, it

Sections 106 and 107 of the National Internal Revenue Code of 1997. as ainended. 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

3) WITHHOLDING TAX

Section 57 of the National Internal Revenue Code of 1997. as amended. and as implemented by Revenue Regulations No. 2-98, as ainended. to the withholding tax under Section 79 (A), Chapter X!11, Title I1 of the National Internal Revernue Code of 1997, as amended, as implemented 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 HOLY CHILD PARISH SCHOOL OF ISABEL, INC. shall be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation incoine subject

TAXPAYER DUTIES & RESPONSIBILITIES 1) HOLY CHILD PARISH SCHOOL OF ISABEL,INC. is required to filc on or before the [5th day of the fourth month following the end of the accounting period a Profit and Loss Statement and change in its By-laws. Articles of Incorporation, manner of operation and activities as welt as the aforementioned Annual Information Return. 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 Sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to

2) Under Section 235 of the National Internal Revenue Code of 1997. as amended, any provision of 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 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 subiect to

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 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 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 National Internal Revenuc Code of 1997, as amended.

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