BIR Ruling No. 457-2018

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

457-2018

CERTIFICATE OF TAX EXEMPTION

issued to

DIVINE JESUS LEARNING CENTER, INC. Apacible St. Ph-2 Bahayang Pag-asa Subd. Molino, Bacoor, Cavite 4102

TIN: SEC Company Reg. No.

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 operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by DIVINE

JESUS LEARNING CENTER,INC., to be actually,directly and exelusively 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.

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

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 AR 13 2018

aomy

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY 014493

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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

1) INCOME TAX.DIVINE JESUS LEARNING CENTER,INC.is exempt from the payment of

income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the following requisites as set forth under

Revenue Memorandum Order (RMO) No 44-2016,to wit

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

DIVINE JESUS LEARNING CENTER, 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 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 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:

(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

of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets, otr or before the 15th day of the fourth month (c)Board Resolution by the school administration on proposed projects (i.e.. construction and/or improvement of school buildings and facilities, acquisition

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 109(1)(H) of the NIRC,DIVINE JESUS LEARNING CENTER,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 and bookstores located within the premises of DIVINE JESUS LEARNING CENTER, INC. are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

DIVINE JESUS LEARNING CENTER, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

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

Divine Jesus Learning Center, Inc. Page 3 of 3 Date issued 3-13-2018 CTE No._457=2018

Exemption. 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 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 DIVINE JESUS LEARNING CENTER, 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 One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1.919,500.00), or to the 3% percentage tax, if gross receipts do not exceed 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

DIVINE JESUS LEARNING CENTER, 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 NIRC, 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 NIRC, and as implemented

by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1)DIVINE JESUS LEARNING CENTER,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 Php 500.00 as prescribed in Section 236(B)

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