BIR Ruling No. 496-2018

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

496-2018

CERTIFICATE OF TAX EXEMPTION

issued to

COLEGIO DE LA PURISIMA CONCEPCION, INC.

Arzobispo Street, Roxas City 5800

SEC Company Reg. No. TIN:

This certifies that the above-named corporation is a non-stock, non-profit corporation

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:

1. Tuition Fees and other school related fees;

2 Donations; and

3. Income derived from the operation of cafeterias/canteens and

bookstores located within its premises, owned and operated by

COLEGIO DE LA PURISIMA CONCEPCION,INC.to be actualIy,

directly and exclusively used for educational purposes.

-nothing follows

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 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.

This Certificate of Tax Exemption is being issued on the basis of the facts and

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.

Issued this day of AR 14 2018

MaBany

Commissioner of Internal Revemue CAESAR R.DULAY

K-1I ASB 014309

COLEGIO DE LA PURISIMA CONCEPCION, INC. Page 2 of 3 CTE No.496-2018 Date issued 3-14-2018

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

INCOME TAX

COLEGIO DE LA PURISIMA CONCEPCION,INC.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:

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

COLEGIO DE LA PURISIMA CONCEPCION, 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

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, subject to

compliance with the conditions that as a tax-exempt educational institution it shall on an annual

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)

VALUE-ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 2) 109(1)(H) of the National Internal Revenue Code of 1997, as amended COLEGIO DE LA

PURISIMA CONCEPCION,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 and bookstores located within the premises of COLEGIO DE

LA PURISIMA CONCEPCION, INC. are exempt from taxation provided they are owned

and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX COLEGIO DE LA PURISIMA CONCEPCION, 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 ratef .5% to 15% effective January 1. 2018

Department Order No.149-95 dated November 24.1995 amending Department Order No.137-8

COLEGIO DE LA PURISIMA CONCEPCIONINC. Page 3 of 3 Date issued 3-14-2018 CTE No. 4962018

National Internal Revenue Code of 1997, as amended, on its income derived from any of its for taxation, unless said revenues are actually, directly and exclusively used for educational Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the properties, real or personal, or any activity conducted for profit, which income should be returned purposes.

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

If COLEGIO DE LA PURISIMA CONCEPCION,INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidentat thereto, its revenues derived therefrom shall be subject to the 12% V AT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00) 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 or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997. as amended. 3) WITHHOLDING TAX

amended. or if it makes income payments to individuals or corporations subject to the withholding implemented by Revenue Regulations No. 2-98, as amended. COLEGIO DE LA PURISIMA CONCEPCION, 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 XilI, Title II of the National Internal Revenue Code of 1997, as amended, as implemented' by Revenue Regulations No. 2-98. as tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended. and as

TAXPAYER DUTIES & RESPONSIBILITIES

1) COLEGIO DE LA PURISIMA CONCEPCION, INC. is required to file on or before the 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 and Balance Sheet with the Annual Information Return under oath, stating its gross income and change in its By-laws, Articles of Incorporation, manner of operation and activities as well as the aforementioned Annual Information Return. 15th day of the fourth month following the end of the accounting period a Profit and Loss Statement

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.

Republic Act No.10963 increased the VAT threshold from1,919,500.00 to P3,000.00 17018