BIR Ruling No. 94-2018

REPUBLIC OIJ THE PIIILIPPINES DEPART]\,TENT OF FINANCE BUREAU OF INTERNAT REVENUE Quezon City ertilicate of Tax Exemption No. ir.,ayl,.td"..-L.,j -I'Ja CER.TIF'ICATE OF TAX EXEMPTIOI{ issued to KAIBTGAI{ ERMITA OUTREACH FOUNDATION" INCORPORATED . 2551 Rubi St., San Andres Bukid, Manila TIN SEC Company Reg. No. This certifies that the above-named corporation has pioven'by actual operation that its prirnary purpose is one of those.enumerated under Section gO (G) of the National lnternal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the following revellues or rcceipts: l. lDonations. -----------nothirag follows---- 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 parl hereof. lt is liable, however, to all other taxes not enumerated above. This cerlification shall be valid for three (3) years from the date of issuance unless earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR, or the terms and conditions herein set forth. This Certificate may be renewed upon filing of a subsequent application for revalidation provided under Revenue Memorandum Order (RMO) No.20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the explration of the three (3)-year period. This Certificate of Tax Exemption is being issued on the basis .of the facts and 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. rssued this ou, os JA N J i ,e-qlq : - CAESAR R. DULAY Commissioner of Internal Revenue e1i-1-t-MAT ^&'L"l t^t CEHA e. KtNCb Deputy Commissione"r Resource Management Grouo

t, CTE l,lo, c94-2018 KA I B 1 GA N ERM ITA OLI TREACH FO LI NDATIO N, Ddte issued t --7t *->nt?. I,YCORPORATED c or rHn TERMS AND CONDITIONS prprroN TAX EXEMPTIONS r ) INCO]VIE TAX KAIBIGAN EITMITA OUTREACH FOUNDATtrON, INCORPORATED is exempt from _the payment of incorne tax only on revenues and rgceipts enumerated on the Certificate of Tax Exemption, provided, that no part of its net income or asset shall belong to, or inure to the benefit of any member, organizer, officer or any specific person. LIABILITY FOR INTERNAL REVENUE TAXES It INCOIIE TAX KAIBIGAN ERMITd OUTREACH FOUNDATION, INCORPORATED is subject to incoLne tax on all its income/receipts/revenues not expiessly exempted and stated in the Cerrificate of Tax Exernption. 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 regardless of the disposition thereol, which inconre should be returned for taxation. Likewise, interest income from currency banli deposits and yield or any other monetary benefits from deposit substitute instruments and fiom trust funds and similar arrangernents, 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 (7-112%) final withholding income tax pursuant to Section 27(D)(l) in relation to Sec. 57(A) both of theNational Internal Revenue Code of 1997,as amended. 2) VALUE ADDED TAX (VAT)/PEI{.CENTAGE TAX If KAIBIGAN ERMITA OUTREACII FOUT{DATION, INCORPORATED 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 twelve percent (12%) VAT, in case the gross receipts fronr such sales is One Millibn Nine Hundred Nineteen'l'housand Five Hundred Pesos (P1,919,500.00), or to the three percent (3%) percentage tax, if gross receipts do not exceed One Millibn Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00). Notwithstanding tliat it is a non-stock, non-proiit corporation, its purchase of goods or properties or services and importation of goods shall nevertheless be subject to the twelve percent (12%) VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, asamended" 3) WITTIHOLDING TAX KAIBIGAN ERMITA OUTREACH FOUNDAT{ON, II{CORPORATED 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 Il of the NationallnternalRevenue Code of 1997,as amended, as irnplemented by Revenue Regulations No. 2-98, as amended, or if it makes income payrnents to individuals or corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, as irnplemented by Revenue Regulations No. 2-98, as amended,

KA I B I GA N E RM I TA O U TREAC H FO LI iV DAI-]O N, CTE No. 0gtr*A){8 INCORPORATED Dote issuedffi^ -,.n .,.r,, I TAXPAYER'S DUTIES & RESPONSIBILITIES l) KAIBIGAN ERMITA OUTREACII FOUNDATION, INCORPORATED is required to file on or before the l5th day of the fourth month foliowing the end of the accodnting period a Profit and Loss Statement and Balance Sheet with the Annual Information Returi 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 Incorpordtion, rnarlner of operaJion arid activities as welf as sources and disposition of income. Copy of this Ceftificate of Tax Exemption shall be attached to the aforementioned Annual In lormation Return. 2) Under.Section 235 of the National lnternal 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 giantees of tax incentivbs shall be subject to examination by the BIR- for purposes bf ascertaining compliance with the conditions under which it has been grant6d iax exemptions or tax incentives, and its tax liabilities, if any. 3) Fufther, it is also required under Section 6(C) in relation to Section 237 of the National lnternal 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 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 Sectiqn 236(8) of the National Internal Revenue Code of 1997, as amended. i*t;-t-ttvtr