BIR Ruling No. 344-2018

BUREAU OF INTERNAL REVENUE REPUBLICOF THE FHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 344-2018

CERTIFICATE OF TAX EXEMPTION

issued to

BANGKO KABAYAN FOUNDATION, INC Santiago St., Ibaan, Batangas 4230 SEC Reg..No. TIN:

and has"proven :by actual operation that'its.primary. purpose falls under Section 30 (E) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

I. Donations.

lothing follow.

. integral part hereof. It is liable, however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject. to the provisions of applicable BIR rules and regulations and the tax exemptions,

earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR, or the terms and conditions herein set forth. This certification shall be valid for three (3) years from the date of issuance unless

period. provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year This Certificate may be renewed upon filing of a subsequent application for revalidation

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 E

Issued this day ofMAR 20i8

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Commissioner of Internal Reyenue CAESAR R. DULAY I+ 014082 .

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Bangko Kabayan Foundation. Inc Page 2 of 3 Date issued_3-'7-2018 CTE No. 344-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX Moreover.. BANGKO KABAYAN FOUNDATION, INC. is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption to be entitled to the tax exemptions enumerated herein, the

association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX Exemption. Moreover, it is subject to the corresponding internal'revenue taxes imposed BANGKO KABAYAN FOUNDATION INC. is subject to income tax on all its under the.NIRC on its income derived from any of its properties, real or personal, or any returned for taxation. income/receipts/revenues not expressly exempted and stated in the Certificate of Tax activity conducted for profit regardless of the disposition thereof, which income should be

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, seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the NIRC. and royalties derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a depository bank under the expanded foreign currency deposit system shall be subject to

2) 'VALUE ADDED TAX/PERCENTAGE TAX If BANGKO KABAYAN FOUNDATION,INC.is engaged in the saie of goods or Pesos (P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed 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 exceeds One Million Nine Hundred Nineteen Thousand Five Hundred P1,919,500.00.

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 NIRC.

3) WITHHOLDING TAX 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 NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes income BANGKO KABAYAN FOUNDATION, INC. shall be constituted as withholding agent

payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended.

Bangko Kabayan Foundat ion, Inc. Page 3 of 3 Date issued 3--7-2018 CTE No. 344-2018

TAXPAYER'S DUTIES & RESPONSIBILITIES

2) Under Section 235 of the NIRC, any provision of existing general and special law to the 1 BANGKO KABAYAN FOUNDATION, INC. is required to file on or before the 15th day of tax exemptions or tax incentives, and its tax liabilities, if any. not been any :change in its By-laws; Articles of Incorporation, manner of operation and 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 the fourth month following the end of the accounting period a Profit and Loss Statement activities as well as sources and disposition of income. Copy of this Certificate of Tax 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 Exemption shall be attached to the aforementioned Annual Information Return.

3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC to Which the Association is registered. (Revenue Memorandum'Circular No. [RMC] No. 76 issue duly registered receipts or sales or commercial invoices for each sale or transfer of 2003 merchandise or for services rendered which are not directly related to the activities for

4) Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIRC

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