BIR Ruling No. 504-2017

REPT KC OF THE PHILIPPINES

D TMENT OF FINANCE BUREAU F INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

CERTIFICATE OF TAX EXEMPTION

issued to

DON BOSCO YOUTH CENTER-TONDO, INC C.P. Garcia Strect. Bo. Magsaysay. Brgy. 116 Zone 09, Tondo, Manila 1012 SEC Company Reg. No. TIN:

INCOMF 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(1) 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 Donations: 2. Trainees' cash contributions; and 3. Income derived from operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by DON BOSCO

for educational purposes. YOUTH CENTER-TONDO, INC., to be actually, directly and exclusively used nothing follows.

subject to the provisions of applicable BIR rules and regulations and the tax cxemptions. 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 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

charactcr. purpose or method of opcration of the corporation which are inconsistent with the basis for its income tax exemption.

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

Issued this day of -.. NOV 0 6 2017

1880M1

CAESAR R. DULA

K-I-JAC Commissioner of Internal Revenue 010835

Page 2 of 3 Don Bosco Youth Center-Tondo, Inc. CTE No. Date issued 11--20? TC:-2017

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. DON BOSCO YOUTH CENTER-TONDO INC,is exempt from the payment Revenue Memorandum Order (RMO) No 44-2016. to wit: 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

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

statement together with the following: and yieid from deposit substitute instruments used actually. directly and exclusively in pursuance (1) of the National Internal Revenue Code of 1997, as amended. subiect to compliance with the Revenue District Office concemed an annual information return and duly audited financial DON BOSCO YOUTH CENTER-TONDO INC.'s interest income from currency bank deposits of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under the expaided foreign currency deposit system imposed under Section 27 (D) conditions that as a tax-exempt educational institution it shall on an annual basis submit to the

of 1997. as amended: and 7 1/2% tax on interest income under the cxpanded foreign curreney deposit System imposed by Section 27 (D) (1) of the National Internal Revenuc Code (a)Certification from their depository banks as to the amount of interest incone earned from passive investment not subject to the 20% final withholding tax

(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. acquisitio of equipment, books and the like) to be funded out of' the money deposited in following the end of its taxable year (Sec. 4. Finance Department Order No. banks or placed in money markets. on or before the 1 Sth day of the fourth month 137-87)

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section operations as a non-stock, non-profit educational institution are exempt from VAT. 109(!)(H) of the NIRC.DON BOSCO YOUTH CENTER-TONDO,INC.'s groSS receipts from

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. Moreover. it is subject to the corresponding interna! revenue taxes imposed under DON BOSCO YOUTH CENTER-TONDO._INC. is subject to income tax on all its

' Department Order No. 149-95 dated November 24. 1995 amending Department Order No. 137-8

Don Bosco Youth Center-Tondo, Inc. Page 3 of 3 CTE NO. I)ate issued_11~6-2017 50 201

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, dircctly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

1f DON BOSCO YOUTH CENTER-TONDO, INC. is engaged in the sale of goods or services in the coursc of a business pursuit, including transactions incidental thereto. its revenucs derived therefrom shall be subject to the i2% VAT. in case the gross receipts from such sales is 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 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

by Revenue Regulations No. 2-98, as amended. the government if it acts as an employer and its employees receive compensation income subject to Revenue Regulations No. 2-98. as amcnded. or if it makes incoine payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and as implemented DON BOSCO YOUTH CENTER-TONDO,INC. shall be constituted as withholding agent for the withholding tax under Section 79 (A). Chapter XIII. Title II of the NIRC. as implemented by

TAXPAYER DUTIES & RESPONSIBILITIES

1) DON BOSCO YOUTH CENTER-TONDO,INC. is required to file on or before the 15th day of the aforementioned Annual Information Return. expenses incurred during the preceding period and a certificate showing that there has not been any change in its By-taws, 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 fourth month following the end of the accounting period a Profit and Loss Statement and Batance Sheet with the Annual Information Return under oath, stating its gross income and

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. cxamination by thc BIR for purposes of ascertaining compliance with the conditions under which 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

3) Further, it is also required under Section 6(C) in relation to Section 237 of the Nationat Internal No. [RMC] No. 76-2003). invoices for each safe or transfer of merchandise or for scrvices rendered which are not directly related to the activities for which the Association is registered. (Revenue Memorandum Circular Revenue Code of 1997, as amended. to issue duly registered receipts or sales or commercial

4)Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of thc National Internal Revenue Code of !997. as amended