BIR Ruling No. 465-2018

BUREAU OF INTERNAL REVENUE REPUBLCOF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. 465-2018

CERTIFICATE OF TAX EXEMPTION

issued to

XAVIER HIGH SCHOOL OF MABUHAY, INC. Poblacion, Mabuhay, Zamboanga, Sibugay SEC Company Reg. No. TIN

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

4 2 3 Scholarship grants; Tuition fees and other miscellaneous school fees; Income derived from the operation of cafeterias/canteens and Donations:and

directly and exclusively used for educational purposes. XAVIER HIGH SCHOOL OF MABUHAY,INC.to be actually bookstore located within its premises, owned and operated by

nothing follows

integral part hereof. It 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

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 character, purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption. This certification shall be valid from the date of issuance until revoked by this Office

documents as represented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then this Certificate shall be considered null and void. Issued this This Certificate of Tax Exemption is being issued on the basis of the facts and . day of AR 13 2018

1a&oy

K-I JES Commissioner of Internal Revenue CAESAR R.DULAY 014275

Xavier High School of Mabuhay, Inc. CTE No.465-2018

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Under Section 30 (H) of the National Internal Revenue Code of 1997, as amended OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock, Non-Profit Educational Institution TERMS AND CONDITIONS

TAX EXEMPTION

1 INCOME TAX

as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: 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 XAVIER HIGH SCHOOL OF MABUHAY,INC. is exempt from the payment of

a)It is a non-stock, non-profit educational institution; and b) Its revenues are actually, directly and exclusively used for educational

purposes.

XAVIER HIGH SCHOOL OF MABUHAY, INC.'s interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as _a tax-exempt educational institution it shall on an annual basis submit to the Revenue District Office the following: concerned an annual information return and duly audited financial statement together with

a) Certification from their depository banks as to the amount of interest withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed by Section 27 (D) (1) of the income earned from passive investment not subject to the 20% final National Internal Revenue Code of 1997, as amended;

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. money deposited in banks or placed in money markets, on or before the 4, Finance Department Order No. 137-87). acquisition of equipment, books and the like) to be funded out of the 15th day of the fourth month following the end of its taxable year (Sec.

2)VALUE-ADDED TAX (VAT) ON EDUCATIONAL SERVICES.Pursuant to Section SCHOOL OF MABUHAY,INC.'s gross receipts from operations as a non-stock, non- profit educational institution are exempt from VAT. 109(1)(H of the National Internal Revenue Code of 1997,as amended,XAVIER HIGH

Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

Xavier High School of Mabuhay, Inc. CTE No.465-2018

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LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

XAVIER HIGH SCHOOL OF MABUHAY, 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 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, which income should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE-ADDED TAX (VAT)/PERCENTAGE TAX

If XAVIER HIGH SCHOOL OF MABUHAY,INC.is engaged in the salc 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 exceeds One Million Nine Hundred 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 or services and importation of goods shall nevertheless be subject to the 12%

amended. VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as

3) WITHHOLDING TAX

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 Regulations No. 2-98, as amended, or if it makes income payments to individuals or 98, as amended. XAVIER HIGH SCHOOL OF MABUHAY,INC.shall be constituted as withholding National Internal Revenue Code of 1997, as amended, as implemented by Revenue corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-

TAXPAYER DUTIES & RESPONSIBILITIES

XAVIER HIGH SCHOOL OF MABUHAY,INC.is required to file on or before the

Return. 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 Statement and Balance Sheet with the Annual Information Return under oath, stating its 15th day of the fourth month following the end of the accounting period a Profit and Loss

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, and its tax liabilities, if any. 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

Xavier High School of Mabuhay, Inc Page 4 of 4 Date [ssued: 3-132018 CTE.628

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

Memorandum Circular No. [RMC] No. 76-2003). are not directly related to the activities for which the corporation is registered. (Revenue

4 Finally,it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.