BIR Ruling No. 624-2019

KEPUDLIS OF THE PHILIFPINES

DEPARTMENT OF FINANCE BUKEAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exenption No

0E21-100

CERTIFICATE GFTAXEXEMPTION

issued to

MOUNTAPO FOUNDATION INC

Perez Street, Posiacion. Kidapawan City 9400

SEC Company Reg. No. TT:

This certifies that the above-:ar.ed corporation is a non-stock, non-profit corporation and has proven by actual operation tha: its primary purpose is one of those enumerated unde: Secrion 30 (G) of the National Irternal Revenue Code Of 1997, as amended. It is exempt from iNCCMiE TAX only on the foilowing revenues or receipts:

1. Grants aud Donations.

Rething fotiow

s.tject to the provisions of applicasie Bik rules and regulations and the tax exemptions. iabilities and responsibilities stated ir. :h- Terms and Conditions hereto attached and made an ir.tegral part hereof. It is liabie, however io ail other taxes not enumerated above.

This certifieation shall be vulia fer trree (3) years from the date of issuance untess eartier revoked by this Office for viotation. of any provisions of applicable rules and regulations Ot' BiR. or the terms and conditions herein set forth.

This Certificate may be rer.s wed upon filing of a subsequent application for revalidation

Certificate shall be deemed a revocatier thereof upon the expiration of the three (3)-year F ided under Revenue Mermorandun Orser (RMO) No. 20-2013. Failure to renew this

peritd

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

Issued this day cf :

61

ST-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 029833

MOUNT A PO FOUNDATION, INC. Date issued CTE NC. 3

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAXEXEMPTION

TAX EXEMPTIONS

D INCOME TAX

MOUNT APO FOUNDATIGN. FC. is or:iy exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover. association/corporation/organizasn must continue to meet the requirements ser forth (o be entitled to" the tax exemption enumerated herein, : the

under Revenue Memorandurm O:der (RMO) No. 20-2013.

LIABJLITYFOR INTERNAL REVENUE TAXES

D INCOME TAX

MOUNT APO FOUNDATION, INC. is subject to income tax on all 'its income/receipts/revenues not exprassly exempted and stated in the Certificate of Tax Exernption. Moreover, it is subject tc the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1 997, as amended, on its income derived from any of its properties, real or persona!. or any activity conducted for profit regardiess of the aisposition thereof, which incone shoutd be returned for taxation. Thus, its income from rubber prodaction, function hali reutal, and sale of properties shall be subject to Income tax.

Likewise, interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements, and royalties derived from sources within the Phitippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a depository bank under the expandei fereign currency deposit system shall be subject to fifteen percent (1 5%)' final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internai Revenue Code of 1997, as amended.

2) VALUE ADDED TAX (VSTIYERCENTAGE TAX

If MOUNT APO FOUNDATION, INC. is engaged in the sale of goods or services in the course of a business pursuit. inciuding transactions incidental thereto, its revenues derived therefrom shall be subject to the tweive pereent (12%) V AT, in case the gross receipts from sueh sales exceed Three Million Pesos (P3,000,000.00)2' or to the three percent (3%) percentage tax, if gross receipts do nst exceed Three Million Pesos (P3,000,000.00).

Netwithstanding the fact that it is a ner-stock, non-profit corporation, its purchase of goods or properties or services and impc.tation of goods shall nevertheless be subject to the rveive percent (12%) VAT pursaa.1 (o Sections 106 and 107 of the National Internal Revenue Code of 1997. as ainerded.

S WITHHOLDING TAX

MOUNT APO FOUNDATION, INC. sh.ali be constituted as withhoiding agent for the governiment if it acts as an employer and its employees receive compensation income Subject to the withholding tax unde: Seetion 79 (A), Chapter XIII, Titie'II of the National Internal Revenue Code of 1997, as arnended, as implemented by Revenue Regulations No. 2-98, as amended, or if ir makes income payments to individuals or corporations subject to

Republis Act (RA) No. 10963 increasea tl:e ta: rate from 7.5% to 15% effective January 01, 2018 : Republic Act (RA) No. 10963 increased the V.-T thresnoid from P1,919,500.00 to P3,000,000.00 effective

january 01,2018

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MOUNT A PO FOUNDATION, INC Date issued CTE No. 062:-2315

the withhoiding tax pursuant to Seetior 57 of the National Internai Revenue Code of 1997. as amended, as implemented by Revenue Reguiations No. 2-98, as amended

TAXPAYER'S DUTIES & RESPCNSIBILITIES

1) MOUNT APO FOUNDATION,INC. is recuireI to file on or before the 15th day of the

fourth month foilowing the end Sr the accounting period a Profit and Loss Statement and Baiance Sheet with the Annual iniormation Return under oath, stating its gross income and expenses incurred during the preceding period and a certificate showing that there has not teen any change in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources and dispcsition of income. Copy of this Certificate of Tax Exemption shall be attached to tr.e aforernentioned Annual Information Return.

2) Under Section 235 of the Natiorai Internal Revenue Code of 1997, as amended, any

provision of existing general ang 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 examination by the BIR for purposes of ascertaining compliance ivith the conditions under which it has been granted tax exemptions or tax Incentives, and is tax liabilities, if any.

3) Further, it is aiso 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 coinmercial 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.3

4) Finaily, 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.

SK-1-LMAT

3 Rev enue Memorandum Circular (RMC) No. 7t-2003

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