BIR Ruling No. 72-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

SH-004-2020

CERTIFICATEOFTAXEXEMPTION

issued to

DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY,INC.

Upper Bonifacio St., Baguio City 2600

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 fees; and

2 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

located within its premises, owned and operated by DATA CENTER COLLEGE OF

THE PHILIPPINES OF BAGUIO CITY,INC., to be actually,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 JAN 1 6 2JZ0

ta3aM

CAESAR R.DULAY

Commissioner of Internal Revenue

K-1-JAC 032102

Duta Center College of the Philippines of Baguio CityInc.CTE No.H-004-2020

Page 2 of 3 Date issued A i i

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

I) INCOME TAX.DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY

the Certificate of Tax Exemption. It is understood that the school must continue to meet the INC. is exempt from the payment of income tax only on revenues and receipts enumerated on

following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY,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:

(@)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, DATA CENTER

COLLEGE OF THE PHIILIPPINES OF BAGUIO CITY,INC.'s gross receipts from operations

as a non-stock, non-profit educational institution is exempt from VAT. Moreover, revenues derived

from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within

the premises of DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY

INC. are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX.

DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITYINC.is subject to

income tax on all its income/receipts/revenues not expressly exempted and stated in the

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

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

Data Center College of the Philippines of Baguio City Inc.CTE No.SH002020 Page 3 of 3 Date issueda

imposed under National Internal Revenue Code of 1997, as amended, as amended, on its income Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes 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/PERCENTAGE TAX

If DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY,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 (P3,000,000.00)3, 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.

DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY.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

DATA CENTER COLLEGE OF THE PHILIPPINES OF BAGUIO CITY,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 Association is registered. (Revenue Memorandum Circular

No. [RMC] No. 76-2003).

4)Finally, it is subject to the payment of registration fee of P500.00 as prescribed in Section 236 (B)

of the National Internal Revenue Code of 1997, as amended.

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