BIR Ruling No. 306-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES D'EPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. 306-20 18

certiFiCAte oF taX eXemPtion

issued to

THE VALLEJO LEARNING VENUE, INC.

Block 5 Lot 9 Dove St., Vallejo Place, Imus, Cavite SEC Company Reg. No. 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

1. Tuition and miscellaneous fees; 2. Donations and Grants.

lothing 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.

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and conditions herein set forth. It shali likewise be revoked if there are material changes in the character, purpose or method of operation of the corporation which are inconsistent with the This certification shall be valid from the date of issuance until revoked by this Office

basis for its income tax exemption.

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

Issued this day of MAR 0 5 2018

1&8a CAESAR R. DULAY Commissioner of Internal Revenue 0139 38

K-1/spf

The Vallejo Learning Venue, Inc. Page 2 of 3 Date issued 3-5-2018 CTE No. 306-2018

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

D) INCOME TAX

the school must continue to meet the following requisites as set forth under Revenue Memorandum revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that Order (RMO) No 44-2016, to wit: THE VALLEJO LEARNING VENUE, iNC. is exempt from the payment of income tax only on

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

THE VALLEJO LEARNING VENUE, INC.'s interest income from currency bank deposits and yieid 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 7 1/2% 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 shail 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 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 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 1 5th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87}

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.

Pursuant to Section 1 09(!)(H) of the NIRC,THE VALLEJO LEARNING VENUE,INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT

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

The Vallejo Learning Venue, Inc. Page 3 of 3 Date issued 3-5-2018 CTE No.306-2018

LiaBility For Internal revenue taXeS

1) INCOME TAX

Moreover, it is subject to the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived from any of its properties, real or personal, or any activity THE VALLEJO LEARNING VENUE,INC. is subject to income tax on all its income/ conducted for profit, which income should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. receipts/ revenues not expressly exempted and stated in the Certificate of Tax Exemption.

2) VALUE ADDED TAX

If THE VALLEJO LEARNING VENUE, INC. is engaged in the sale of goods or services in the for VAT on the revenues derived therefrom. course of a business pursuit, including transactions incidental thereto, in general, it shall be liable

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

3)WITHHOLDING TAX

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 NIRC, as implemented by THE VALLEJO LEARNING VENUE, INC. shall be constituted as withholding agent for the 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.

TaXPAYer dutIes & reSPOnSIBiLitieS

THE VALLEJO LEARNING VENUE,INC. is required to file on or before the 15th day of the incurred during the preceding period and a certificate showing that there has not been any change Sheet with the Annual Information Return under oath, stating its gross income and expenses in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources and fourth month following the end of the accounting period a Profit and Loss Statement and Balance 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 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. pertinent records of tax-exempt organization or grantees of tax incentives shali be subject to

3) Further, it is also required under Section 6(C) in relation 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 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

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 -1997, as amended.