BIR Ruling No. 519-2017

REPUBLIC OF THF PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

519-2017

CERTIFICATE OF TAX EXEMPTION

issued to

52 Guevent Commercial Center. Libertad Street, Mauway, Mandaluyong City 1550 GUEVARA FOUNDATION, INC. SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose falls 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

1. Donations.

nothing follows

liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

integral part hereof. It is liable, however, to all other taxes not enumerated above.

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

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

period.

that the facts are different. then this Certificate shall be considered null and void. 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

Issued this day of NOV o 7 2c..

10%9m

K-1-JAC Commsionerof nteral RgvrfnU"9 7 1 CAESAR R. DULAY

P'age 2 of 3 Guevara Foundation, Inc. CTE No. Date issucd 21-7-207 19-201

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INCOME TAX. GUEVARA 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 enumeratedherein, the

association/corporation/ organization must continue to meet the requirements set forth

under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) (NCOME TAX

GUEVARAFOUNDATION,INC.issubject Lo income tax o all its

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

Exemption. Moreover, it is subject to ihe 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.

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 sourccs 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/PERCENTAGE TAX

If GUEVARA 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 therefrom shall'be subject to the 12% VAT, in case the gross receipts from such sales is One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P 1,919,500.00), 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

GUEVARA FOUNDATION,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 makcs income

57'of the NIRC, as implemented by Revenue Regulations No. 2-98. as amended. payments to individuals or corporations subject to the withholding tax pursuant to Section

Guevara Foundation, Inc. Page 3 of 3 CTE No. _519-2017 Date issued11-7-2017

TAXPAYER'S DUTIES & RESPONSIBHLITIES

1) GUEVARA FOUNDATION, INC. is required to file on or hefore the 15th day of the fourth Sheet with the Annual Information Return under oath, stating its gross income and expenses 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 month following the end of the accounting period a Profit and Loss Statement and Balance attached to the aforementioned Annual Information Return. incurred during the preceding period and a certificate showing that there has not been any

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-exempi organization or grantees of tax incentives shall be subject to examination by the BIR for tax exemptions or tax incentives. and its tax liabilities, if any. purposes of ascertaining compliance with the conditions under which it has been granted

3) Further, it is aiso 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 2003 merchandise or for services rendered which are not directly related to the activities for which thc Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-

4) Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIR(