BIR Ruling No. 292-2017

REPUBLICOETHE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

292-2017

CERTIFICATE OF TAX EXEMPTION

issued to

Bethel Bible College Compound, Gov Santiaa ICI MINISTRIES-FOUNDATION, INC. TIN: Ctreet.Malinta,Valenzuela City

SEC Company Reg. No.

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

1. Donations, contributions and love gifts nothing follows

is liable, however, to all other taxes not enumerated above. 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

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

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

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

Issued this day of JUN 08 2017

CAESAR R.DULAY MY ACV

Commissioner of Internal Revent 006990

ICI Minisries-Foundation, Inc. K-1VDPM14

ICI MINISTRIES-FOUNDATION, INC. Page 2 of 3 Date issued. CTE No. 682017 292-2017

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INCOME TAX.ICI MINISTRIES-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.

LIABILITY FOR INTERNAL REVENUE TAXES

D INCOME TAX

ICI MINISTRIES-FOUNDATION, INC. 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 under the NIRC 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. Thus, income derived by ICI MINISTRIES-FOUNDATION, INC. from the sale of bibles, books and religious materials and from the distribution and printing of religious articles are subject to

income tax.

Likewise, interest income from currency 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 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 pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the NIRC.

2) VALUE ADDED TAX

If ICI MINISTRIES-FOUNDATION, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, in general, it shall be liable for VAT on the revenues derived therefrom. Thus, the gross receipts of ICI MINISTRIES- FOUNDATION, INC.derived from the sale of bibles,books and religious materials and from the distribution and printing of religious articles are subject to VAT.

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

ICI MINISTRIES-FOUNDATION, INC. shall be constituted as withholding agent for the government if it acts as an ermployer 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, as implemented by Revenue Regulations No. 2-98, as amended

Page 3 of 3 ICI MINISTRIES-FOUNDATION, INC. Date issued CTE No. 292-2017 68201

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) ICI MINISTRIES-FOUNDATION, 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 NIRC, 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 NIRC 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 NIRC