BIR Ruling No. 359-2020

REPUBLIC OFTHE PHILIPPINES

DEPARTMENT OF FINANCE

THet BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No. SH30-0359-2020

CERTIFICATE OF TAX EXEMPTION

issued to

JIREH BLESSED CHRISTIAN SEC Company Reg. No. LEARNING CENTER, INC. Sitio Santol, Brgy. P I Garcia. TIN: Naval, Biliran 6543

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 entity is a non-stock, non-profit corporation and has

3 2 4 1 Income derived from the operation of cafeterias/canteens, Scholarship grants; Tuition fees and other miscellaneous school fees; Donations; and

INC. to be actually, directly and exclusively used for educational operated by JIREH BLESSED CHRISTIAN LEARNING CENTER, dormitories and bookstore Iocated within its premises, owned and purposes.

nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. 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

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

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of JUN 2 5 2020

reame

K1-FR-18-0081 KI-JESS Commissioner of Internal Revenue CAESAR R.DULAY 035456 O

Page 2 of 3 JIREH BLESSED CHRISTIAN LEARNING CENTER, INC. CTENO.H30-0359-2020 Date Issued:-LJN2 5 2U20

Under Section 30 (H) of the National Internal Revenue Code of 1997, as amended For Non-Stock, Non-Profit Educational Institution OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

D) INCOME TAX

JIREH BLESSED CHRISTIAN LEARNING CENTER,INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It

Revenue Memorandum Order (RMO) No 44-2016, to wit: is understood that the' school must continue to meet the following requisites as set forth under

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

JIREH BLESSED CHRISTIAN LEARNING CENTER,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

compliance with the conditions that as a tax-exempt educational institution it shall on an annual Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, subject to 15%' tax on interest income under the expanded foreign currency deposit system imposed under

basis 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 banks 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. 137-87)2

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

109(1)(H) of the National Internal Revenue Code of 1997, as amended, JIREH BLESSED

CHRISTIAN LEARNING CENTER,INC.'s gross receipts from operations as a non-stock, non

profit educational institution are exempt from VAT. Moreover, revenues derived from assets use

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

JIREH BLESSED CHRISTIAN LEARNING CENTER, INC. are exempt from taxation

provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

INCOME TAX JIREH BLESSED CHRISTIAN LEARNING CENTER,INC.is subject to income tax on all

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

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

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

JIREH BLESSED CHRISTIAN LEARNING CENTER, INC. Page 3 of 3 Date Issued:_JUN 2 5 2020 CTENO.SH30-.0359-2020

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1997, as amended, on its income derived from any of its properties, real or personal, 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.

2) VALUE-ADDED TAX(VAT)/PERCENTAGE TAX

If JIREH BLESSED CHRISTIAN LEARNING CENTER, 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 such sales exceed Three Million Pesos (P3,000,000.003) or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3) WITHHOLDING TAX

JIREH BLESSED CHRISTIAN LEARNING CENTER, 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 XIII, Title II of the National Internal Revenue 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 Section 57 of the National Internal Revenue Code of 1997, as amended,

and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1)JIREH BLESSED CHRISTIAN LEARNING CENTER, INC. is required 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, 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 attached to the aforementioned Annual Information Return.

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

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 National Internal

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

related to the activities for which the corporation 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.

Bepublic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1, 2018