BIR Ruling No. 726-2019

BUREAU OF INTERNAL REVENUE REPULIC OF THE PHILIPPINES DELARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

0F3S-201S

CERTIFICATTE OF TAX EXEMPTTION

issued to

PHILIPPINE INST ITUTE OF CERTIFIED PUBLIC

PICPA 700 Shaw Blvd. Wack Wack Manrlaluyong City 1550 ACCOUNTANTS(PICPA) INC. SEC Ccmpany Reg. No. TIN:

and has proven by actual operation ti.at ius primary purpose falls under Section 30 (C) of the National Internal Revenue Code (N:RC; of 1997, as amended. It is exempt from INCOME TAx only on the following reven'es of receipts: This certifies that the above-naine I corporation is a non-stock, non-profit corporation

1. Donations and Membersnip Dues.

nc thing follows.

subject to the provisions of applicable BlR 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, howev er. to all other taxes not enumerated above.

earlier revoked by this Office for v iolation ef any provisions of app:icable rules and regulations of BIR, or the terms and conditions herein set forth. This certification shall be vaiii for three (3) years from "he date of issuance unless

provided under Revenue Memorandura Order (RMO) No. 20-2013. Failure to renew this period. Cerificate shall be deemed a revocadon thereof upon the expiration of the three (3)-year This Certifieate may be renew ed upon filing of a stbsequent application for revalidation

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

that the facts are different, then this Certifieate shall be ccnsidered null and void.

Issued this day of

UAA

Cominissioner of Internal Revenue CAESAR R. DULAY

K-1-sAC 030 9 39

PHILIPPINE INSTITUTE OF CERTIFLEC Page 2 of 3 PUBLIC ACCOUNTANTS (PICPA; INC Date issued DEC 6 5 20'19 Cte No. 0720-20:2

OF THE CERTIFICATE OF TAX EXEMPTION TERNS AND CONDITIONS

TAX EXEMPTION

1) INCOME ACCOUNTANTS (PICPA)INC. is only exempt from the payment of income tax on revenues and receipts enumerated 5n rhe Certificate of Tax Exemption. Moreover, to be TAX. PHILIPHINEINSTITUTEOFCERTIFIED PUBLIC

entitled to the tax exemptions enumerated herein, the association/corporation/ organization must continue to meet the requirerr.erits set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL RETENUE TAXES

1) INCOME TAX

PHILIPPINE INSTITUTE OF. CERTIFIED PUBLIC ACCOUNTANTS (PICPA) NC. is subject to income tax on all 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 urder the National Internal Revenue Code of 1997, as amended, onits income derived frori 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 currer.cy bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements. and royalties derived from sources vitrin the Philippines are subject to the twenty percent (20%) final withholding tax: Prov:ded. however, that interest income derived by it from a depository bank under the expanied foreign currency deposit system shall be subject 'to fifteen percent (15%)' final withhoiding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the Nationa. Internal Revenue Code of 1997, as amended.

2) VALUE ADDED TAX/PERCETAGE TAX

If PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (PICPA) INC. is engaged in the sale of go5ds or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subjeet 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% per'entage tax, if gross receipts do not exceed P3.000.000.00.

Notwithstanding that it is a non-steck, 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 :06 ang 107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

PHILIPPINE INSTITUTE.OF.CERTIFIED PUBLIC ACCOUNTANTS (PICPA) INC. shall be constituted as withkoiding 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. Titia II of the National Internal Revenue Code of 1997, as amended, as implemented py Re-erue Regulations No. 2-98. as amended, or if it makes

PHILIPPINE INSTITUTE OF CERTH.EE

Page 3 of 3 PUBLIC ACCOUNTANTS (PICPA) INC Date issued_DEC_o 5 2019 CTE No. 2

income paymerts to individuals c: -orporations subjeet to the withholding tax pursuant to Section 57 of the National Interna: F er ue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98. a: a:nerded.

TAXPAYER'S DUTIES& RESPC :SIBHLITIES

PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (PICPA) the accounting period a Profit ana Loss Statement and Balance Sheet with the Annual Information Rerurn under oath, staring its gross incore and expenses incurred during the INC. is required to file on or before the 1 5th day of the fourth month following the end of

preceding period and a certifieate showing that there has not been any change in its By. Iaws, Articles cf Incorporation, mainer of operation and activities as well as sources and disposition of income. Copy cf tl.is Certificate of Tax Exemption shall be attached to the aforementioned Annual Informatic.: Reurn.

2) Under Section 235 of the Naticn.i 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 ul.Ber which it has been granted tax exemptions or tax provision of existing general and special law to the contrary notwithstanding, the books of incentives, and its tax liabilities, if any.

3) Further, it is also required under 5-ction 6(C) in relation to Section 237 of the National commercial invoices for each sale Mi tranisfer of merchandise or for services rendered which Internal Revenue Code of 1997, a: amended, to issue duly registered receipts or sales or

Memorandum Circular No. [RMC1 Nc. 76-2003) are not directly related to the act:ties for which the Association is registered. (Revenue

4) Finally, it is subject to the payr.ient of registration fee of PhP 500.00 as prescribed in Section 236(B) of the Nationai Internal Revenue Code of 1997, as amended.