BIR Ruling No. 480-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Chezon City

Certificate of Tax Exemption No.

0480-2015

CERTIFICATE OF TAXEXEMPTON

issued to

PHILIPPINE CHRISTIAN ASSISTANCE FOUNDATION INC.

PGCAG Gov. I Santiago St., Malinta, Valenzuela City 1440

TIN: SEC Company Reg. No.

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

I. Contributions, donations ans rithes.

-nothing follow's

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

This certification shall be valii for three-(3) years from the date of issuance uniess earier 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 Certificate may be renewed upon filing of a subsequent application for revalidation provided under Revenue Memorandunx Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period.

This Certificate of Tax Exemption is being issued on the basis of the facts and documents as represented and submitied. 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_ AUG 31 21g

A90

CAESAR R.DULAY Cornmissioner of Internal Revenue K-I-JAC 028075

Page 2 of 3 Philippine Christian Assistunce Founduion, Inc. Date issued AUG 3 t 2 CTE No. 0280--

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. PHILIPFINE CHRISTIAN ASSISTANCE FOUNDATION INC. iS only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, 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.

LIABILITYFOR INTERNAL REVENUE TAXES

1 INCOME TAX

PHILIPPINE CHRISTIAN ASSIsTANCE FOUNDATION INC is subject to income tax on ali its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1997, as amended, 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 returned for taxation.

Likewise, interest income from.currency bank deposits and yieid or any other monetary benefits from deposit substitute instruments and from trust funds and similar 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 fifteen percent (15%)' final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the Nationai Internal Revenue Code of 1997, as amended.

2) VALUE ADDED TAX/PERCENTAGE TAX

If PHILIPPINE CHRISTIAN ASSISTANCE FOUNDATION,INC is engaged in the sale of goods "or services in the course of a business pursuit,"including transactions incidental thereto, its revenues derived thierefrom shall be subject to the 12%VAT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00)2, or to the 3% pereentage tax, if gross receipts do nct 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 Secticns 106 and 107 of the National Internal Revenue Code of 1997, as amendedl

3) WITHHOLDING TAX

PHILIPPINE CHRISTIAN ASSISTANCE FOUNDATION,INC shali be constituted as withholding agent for the governmient 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 cy Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuals or corporations subject to the withhoiding tax pursuant to Section 57 of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended.

tRepubtic Act No. 10963 inereased the tax rate from 7.5% tc 15% effeorive Januar: 1. 2018. 2Republic Act No. 10963 insreased the V-T th-eshcii from Pi,919,500.00 to P3,000,000.00 effective January 1, 2018.

Page 3 of 3 Philippine Christian Assistance Foundation, Ire. Date issued AUG 3 0 20T3 CTE NO. 080-211

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) PHILIPPINE CHRISTIAN ASSISTANCE FOUNDATION INC is required to file on 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 or before the 15th day of the fourth month following the end of the accounting period a Profit and Loss Statement and Balaiice Sheet with the Annual Infofmation Return under 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 Sectior 5(C) in relation to Section 237 of the NIRC to which the Association is registered. (Revenpe Memorandum Circular No. [RMC] No. 76. issue duiy 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 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