BIR Ruling No. 501-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certiticate of Tax Exemption No

501-2018

CERTIFICATE OF TAX EXEMPTION issued to

NORTHERN QUEZON COLLEGE, INC. SEC Company Reg. No. Brgy. Comon, Infanta,Quezon 4336 TIN:

and has proven by actual operation that its primary purpose is one of those enumerated under Section 30(H) 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

2.Income derived from operation of cafeterias/canteens and bookstores located within 1.Tuition fees and other school related fees; and its premises,owned and operated by NORTHERN QUEZON COLLEGE, INC., to be actually, directly and exclusively used for educational purposes.

othing 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

conditions herein set forth. It shall likewise be revoked if there are material changes in the for violation of any provisions of applicable rules and regulations of the BIR, or the terms and 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. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day ofMAR 14 2018

AeaMe

Commissioner of Internal Revenue CAESAR R. DULAY

K-1 014315

Northern Quezon College, Inc. CTE No.501-2018 Page 2 of 3 Date issued_ 3-14-2018

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

under Section 30 (H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution

TAX EXEMPTION

1) INCOME TAX.NORTHERN QUEZON COLLEGE,INC.is exempt from the payment 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 Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

NORTHERN OUEZON COLLEGE, INC.'s interest income from currency bank deposits and purpose as an educational institution, are exeinpt from the 20% final tax and 7 1/2% tax on interest Office concerned an annual information return and duly audited financial statement together with the following: yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its income under the expanded foreign currency deposit system imposed under Section 27 (D) (l) 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

(a)Certification from their depository banks as to the amount of interest income earned from passive investment not subject to the 20% final 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 National Internal Revenue Code of 1997, as amended;

(b)Certification of actual utilization of the said income; and

construction and/or improvement of school buildings and facilities, acquisition of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. (c)Board Resolution by the school administration on proposed projects (i.e., 137-87)

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(1)(H) of the NIRC,NORTHERN QUEZON COLLEGE,INC.`s gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

NORTHERN OUEZON COLLEGE, 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

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

Northern Quezon College, Inc. Page 3 of 3 CTE No.01-2018 Date issued3-14-2018

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. the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived

2) VALUE ADDED TAX/PERCENTAGE TAX

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 (P1,919,500.00), or to the 3% percentage If NORTHERN QUEZON COLLEGE, INC. is engaged in the sale of goods or services in the 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

NORTHERN QUEZON COLLEGE, INC. shall be constituted as withholding agent for the

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, and as implemented 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

by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) NORTHERN QUEZON COLLEGE,INC. is required to file on or before the 15th day of the

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 Sheet with the Annual Information Return under oath, stating its gross income and expenses fourth month following the end of the accounting period a Profit and Loss Statement and Balance

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 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

examination by the BIR for purposes of ascertaining compliance with the conditions under which pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to

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 National Internal

invoices for each sale or transfer of merchandise or for services rendered which are not directly Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial 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 National Internal Revenue Code of 1997, as amended.