BIR Ruling No. 637-2017

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

657--017

CERTIFICATE OF TAX EXEMPTION

issued to

DOMINICAN COLLEGE OF ILOILO (DCIL), INC. SEC Company Reg. No.: Melliza Street, Zarraga, Iloilo 5004 TIN:

INCOME TAX only on the following revenues or receipts: 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 This certifies that the above-named corporation is a non-stock, non-profit corporation

2. Income derived from operation of cafeterias/canteens, dormitories and bookstores 1. Tuition fees and other school related fees; located within its premises, owned and operated by DOMINICAN COLLEGE OF ILOILO (DCIL), INC., to be actually, directly and cxclusivcly used for educationai purposes. nothing fotlows subject to the provisions of applicable BIR rules and regulations and the tax exemptions. liabilities and responsibilities stated in the T'erms and Conditions hereto attached and made an integral part 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, purposc or mcthod 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 thc BIR, or thc 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 DFC_1.9 2017

18aAn

K-1-ASI3 Commissioner of Internal Revenue CAESAR R. DULAY : 011970

Dominican College of Iloilo (DCIL), Inc. Page 2 of 3 CTE No. Date issued 12-19-201? 537-2017

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

TAX EXEMPTION

1) INCOME TAX. DOMINICAN COLLEGE OF ILOILO (DCIL) INC. is exempt from the forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: 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 foilowing requisites as set

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

Revenue District Office concerned an annual information return and duly audited financiat statement together with the following: 27 (D) (1) of the Nationai Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section DOMINICAN COLLEGE OF ILOILO (DCIL). INC.'s_interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in

of 1997, as amended; (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 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

(b)Certification of actual utilization of the said income: and

of equipment. books and the like) to be funded out of the money deposited in following the end of its taxable year (Sec. 4, Finance Department Order No. (c)Board Resolution by the school administration on proposed projects (i.e., construction and/or improvement of school buildings and facilities, acquisition banks or placed in money markets, on or before the 15th day of the fourth month 137-87)' 2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section from operations as a non-stock, non-profit educational institution is exempt from VAT. 109(i)(H) of the NIRC DOMINICAN COLLEGE OF HLOILO (DCIL) INC.'s gross receipts

1) INCOME TAX LIABILITY FOR INTERNAL REVENUE TAXES

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax NIRC, as amended, on its income derived from any of its properties, real or personal, or any activity DOMINICAN COLLEGE OF ILOILO (DCIL) INC. is subject to income tax on all its Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

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Dominican College of Iloilo (DCIL), Inc. Page 3 of 3 Date issued 12-19-2017 CTE No. 637-2017

actually. directly and exclusively used for educational purposes. conducted for profit, which income should be returned for taxation. unless said revenues are

2) VALUE ADDED TAX/PERCENTAGE TAX

derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales is percentage tax, if gross receipts do not exceed f1,919,500.00. If DOMINICAN COLLEGE OF ILOILO (DCIL) INC. is engaged in the sa|e of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P 1,919,500.00), or to the 3%

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or propertics or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the NIRC.

3)WITHHOLDING TAX

for the government if it acts as an employer and its employees receive compensation incomc subject to the withholding tax under Section 79 (A), Chapter XIII. Title II of the NIRC, 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 NIRC, and as implemented by Revenue Regulations No. 2-98, as amended. DOMINICAN COLLEGE OF ILOILO (DCIL) INC. shalI be constituted as withholding agent

TAXPAYER DUTIES & RESPONSIBILITIES

1) DOMINICAN COLLEGE OF ILOILO (DCIL) INC. is required to file on or before the !5th sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return day of the fourth month following the end of the accounting period a Profit and Loss Statement 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 Balance Sheet with the Annual Information Return under oath, stating its gross income and

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended. any provision of 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 shatl be subject to examination by the BiR for purposes of ascertaining compliance with the conditions under which

3) Further, it is also required under Section 6(C) in retation to Section 237 of the National Internal No. [RMC] No. 76-2003). Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commerciat 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

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 : 997, as amended.