BIR Ruling No. 713-2019

BLREAU OF INTERINAL REVENUE REPUELIC GF THF PHILIPPINES LETARTMENT OF FINANCE

Quazcn City

Certificate of Tax Exemption No.

0713-281

CERTIFICATE OFTAXEXEMTTION

issued to

HIGHER GEOUND BAPTIST ACADEMY FOUNDATION INC. 6 Maria Ciara St. Zr~iK City T474 SEC Company Reg. No. TN:

ami as pr-en by actual operation that its printary purpose is one of those enumerated under I' CMt. TAX ory on the following revenues or recelpts: . et.5. 36 (H) of the Natior:al Internal Revenue Code of 1997, as amended. It is exempt from Tr is eartiies that the above-named coreorati n is a non-stock. non-profir corporation

Tvition Fees M Other Schooi Reiaied Feess and iscome derived froin the operatica of cafeterias/canteens, dormitories. directly and exciustveiy used fcr etueational purposes. and beckstores iocated vithin its premises, owned, and operated by Higher Ground Baptist Acadeny Foundation, Inc. to be actualty,

nothing 'oiey

Htegral part hereof. it is liable, however. to all other taxes not enumerated above. Haetttes and -esponsibilities stated in the Terms ari Conditions hereto attached and made an eet t: tre sre isions of appieatle BIR ruies and regulations and the tax exemptions.

.. : ic Jatio: of any provisions of applicabte rules and regulations of the BIR, or the terms and Casis far ts income ta exemption. Caitens rerein set forth. it shail iikesvise be revoked if there are material changes in the :Harater. pirpose or method of operation of the corporation which are inconsistent with the This certificaion snail be valid from the date er issuance until revoked by this Office

that the facis aie dirferent. then :his Certificate shall be eonsidered null and void. Tocumeris as represented and submittea. However. if upon investigation, the BIR asccrtains -His Cerrificate of Tax Exemprion is being issued on the basis of the facts and

Isued ihis day or

QCA

Ccnmissioner of Internal Revenue CAESAR R. DULAY

: 030708

H.GHER GROUND BAPTISTACADEMY OUNDATIONINC. CTENO.7132D Date issued DFC 0 2 2019

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

TAX EXEMPTION

I) INCOME TAX

HIGHER GROUND BAPTIST ACADEMY FOUNDATION,INC.is exempt from the payment It is understood that the school nust continue to meet the following requisites as set forth under Revenue Memorandum Order (RMONo 44-20i5,to wit of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption.

b Its revenues are actually, directiy and exclusively used for educational 2 It is a non-stock, non-profi educational institution; and

purposes.

HIGHER GROUND BAPTIST ACADEMY FOUNDATION,INC.'s interest income from currency bank deposits and yieid from deposit substitute instruments used actually, directly and exelusively 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 systen imposed under Section 27(D1 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 staterment 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 27Di 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 finded 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 yea(Sec.4,Finance Department Order No.137-87

2 VALUE ADDED TAX(VAT)ON EDUCATIONAL SERVICES

Pursuant to Section 109(H of the National Internai Revenue Code of 1997,as amended,HIGHER GROUND BAPTIST ACADEMY FOUNDATION,INC's gross receipts from operations as a non-stock,non-profit educational institution are exempt from VAT.Moreover,revenues derived from assets used in the operation of cafeterias/canteens,dormitories,and bookstores located within the premises of HIGHER GROUND BAPTIST ACADEMY FOUNDATION,INC.,are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FORINTERNALREVENUE TAXES

G

PODYC PICHERCRDLNOEAFTISIACADNI CTENO.7 3 - 2 3 Date issued EC ? 203

HIGHER GROUND BAFTIST ACADEMY FO NDTION, INC.is subject to incOMe taX ou zi its ineome/ receints'rerenaes aui exurc iy exeeeed and stated in the Certificate cf the Wational Internal Revenue Code of l997. as wrendea. on its income derived from any of its r: Exemptivn, Ivicreover. in Is subjectic the co.esponding internal revenue taxes imposed under

for iaxation. unless saii revenues are actuaily, direetiy and exclusively used for educational pC properuies, real or personal. or any activity cuaued for profit. which income should be returned

HALUEADDEDTAXIVATYPEHCENTAGETAN

pe:eentage taxx. if gross reteipis io no1 exceed Three Million Pesos (P3,000,000.00). If HGHER GROUND BAPTIST ACADEMY FOUNDATION,INC.is engaged in the sale of tods or services in the course of a. business pursuit. ineluling transactions incidental thereto, its receipts f-cm stch sales exceed Three Milion Pesos (P3.000,000.00)3, or to the three percent (3%) =rrucs de-ived therefroin shall oe sutjeet io tlie twve percent (l2%) VAT, in case the gross

Ivetwitnisianding that it is a nor-stock, non-prof.r eora-ration, its purchase of goods or properties Secriers 103 and 107 of the National Intertai Revente Code of 1997, as amended. er services ana importatior of goods shali nevertheles: be subject to the 12% VAT pursuant to

WITHHOLDINGTAX

HIEHEF GROUND BAPTIST ACADEMY fCJNDATION,INC. shall be cONstituted as the aora: internal Revenue Code of 1997, as an:nded, as implemented by Revenue Regulations -nd as implemented by Revenue Regulations No. 2-&. as amended. witthelding agent for the governinent if it att - ai enpioyer and its employees receive tmpens ition income subject to the wittholcing tax under Section 79 (A), Chapter XI, Title II of M-c. 2. 93. as amended. or if it makes inco:re uavmenrs ro individuals or corporations subiect to the Withtoiding tax pursuant to Section 57 of ine Natonal Internal Revenue Code of 1997. as amended.

TAPAERDUTIES & RESPONSIBILITIES

Defor: tis l5th day of the fourth menth iellow inz the end of the accounting period a Protit and HISHER GROUND BAPTIST ACADEMY FGUNDATION, INC. iS required tO He ON Or

. ceen any ehange ir its By-laws, Aaticles of Incorporetion, manner of operation and activities as income and expenses incurred during the preceding peried and a certificate showing that there has tachet o the aforemeniicned Annual infermatioa Rat nn. i oee ttaternent ard Baiance Sieet with the Annual Int emation Return under oath. stating its gross " -ii as sources and disposition or incente. Cop: of :His Certificate of Tax Exemption shall be

Feinen records of tax-e: empt orga::ization o: grantees of tax incentives shall be subject to -xis:ig generai and special lav tc the contrary rcn-ithsianding, the books of accounts and othen Ht has been graried tax exemptions er tax ineeniives, and its tax liabilities, if any. exaniretior: by the BiR for purposes of ascertainre ccimpliance with the conditions under which :r se-uoi: 235 of the Natisual internal Reverue L oae of 1997, as amended, any provision of

Funer. is also recuired nder Sectien 6 (Ci u. relarion to Section 237 of the National Internal

Hces tor eacr sale or trarsfer of merehataise cr for services rendered which are not directly reiared to the activities for which the Associatior: is vegistered." R-tr'.f: Ccde of i997. as anended. to issue rl:y registered receipts or sales or commercial

+: Fin::1-- 1t is suoject to the payment of :egistration tee of Php500.00 as prescribed in Section 236 (S) f rne National Internal Re'enue Code of 1997 as ariended.