BIR Ruling No. 505-2017

REPUBLICOF THE PHHIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMNT OF HINANGE Queron City

Certificate of Tax Exemption No.

0F-3017

CERTIFICATE OF TAXEXEMPTION

issucd to

TAHANANG WALANG HAGDANAN IN VIGAN

SEC Company Keg. No. Bonifacio Street. Vigan City. Ilocos Sur ASSOCIATION,INC. TIN

primary purpose is one of those enumerated'under Section 30(E) of the National Internal Revenue'Code of 1997, as amended. It is exempt from INCOME TAX on!y on the following revenues or receipts: This certifies that the above-named corporation has proven by actual operation that its

I. Donations.

nothing foliov

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

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

revalidation provided under Revenue Memorandum Order (RM0) No. 20-2013. Failure to renew this Certificate shali be deemed a revocation thereof upon the expiration of the three (3)-year period. This Certificate may be renewed upon filing of a subsequent application for

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However. if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of N0V 0 6 2017

1aRa

Commissioner of Internal Reverue CAESAR R. DULAY 010834

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T+HANANG WALANG HAGDANAN IN YIGAN ASSOCIATION, INC. CTE NO. Date issued cE-acT

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

1) INCOME TAX.

from thc payment of income tax only on revenues and receipts enumerated on the belong to. or inure to the bencfit of any member. organizer, officer or any specific person. TAHANANG WALANG HAGDANAN IN VIGAN ASSOCIATION, INC. is eXempt Certificate of Tax Excmption. provided, that no part of its net income or asset shall

LIABILITY FOR INTERNAL REVENUE TAXES

!) INCOME TAX

to income tax on all its income/receipts/revenues not expressty exempted and stated in on its income derived from any of its properties, real or personal. or any activity conducted for profit regardless of the disposition thereof. which income should be from handicrafts sates, stop shop sales, electronic services, and space rent. TAHANANG WALANG HAGDANAN IN VIGAN ASSOCIATION, INC. is subject the Certificate of Tax Exemption. Moreover, it is subject to the corresponding interna! returned for taxation. Thus, it shall be liable for income tax on its income derived revenue taxes imposed under the National Interna! Revenue Code of 1997. as amended.

arrangements, 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 seven and one-half percent (7-1/2%) final withholding income tax benefits from deposit substitute instruments 'and from trust funds and similar pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internal Likewise. interest income from currency bank deposits and yield or any other monetary Revenue Code of 1997. as amended.

2) VALUE ADDED TAX

transactions incidental thereto. in general. it shall be liable for valuc added tax on the revenues derived therefrom. IE TAHANANG WALANG HAGDANAN IN VIGAN ASSOCIATION, INC. iS engaged in the sale of goods or services in the course of a business pursuit. including

of 1997, as amended. Notwithstanding that it is a non-stock, non-profit corporation, its purchase ot goods or properties or services and importation of goods shall nevertheless be subject to the 12% value added tax pursuant to Sections 106 and 107 of the Nationai Internal Revenue Code

3} WITHHOLDING TAX

TAHANANG WALANG HAGDANAN IN VIGAN ASSOCIATION, INC. sha!l be 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, as implemented by Revenue Regulations No. 2-98, as amended. 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 XI11, Title Il of the National internal Revenue Code of 1997. as amended. as

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TA HANANG IALANG HAGDANAN IN VIGAN ASSOCIATION INC Date issued 11-5-2017 CTE NO. 505.2017

TAXPAYER'S DUTIES & RESPONSIBHLITIES

[) TAHANANG WALANG HAGDANAN IN VIGAN ASSOCIATION, INC. is required to file on or before the 15th day of the fourth month following the end of the accounting period and a certificate showing that there has not been any change in its By-laws. aforementioned Annual Information Rcturn. 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 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

2) Under Scction 235 of the National Internal Revenue Code of 1997. as amended. any 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. provision of existing general and special law to the contrary notwithstanding. the hooks of

3) Further. it is also required under Section 6(C) in relation to Section 237 of the National commercial invoices for each sale or transfer of merchandise or for services rendered which are not directiy related to the activities for which the Association is registered. Internal Revenuc Code of 1997. as amended. to issue duly registered receipts or sales or (Revenue Memorandum Circular No. [RMC] No. 76-2003). 4) Finally. it is subject to thc payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997. as amended.

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