BIR Ruling No. 408-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No. 0408-201

CERTIFICATE OF TAX EXEMPTION

issued to

2360 P. Burgos St., Sta. Clara. Brgv. 100. 4th District Pasay City 1300 STA.CLARA PARISH SCHOOL, INC SEC Company Reg. No. TIN:

has proven by actual operation that its primary purpose is one of those enumerated under Section This certifies that the above-named.corporation is a non-stock, non-profit corporation and

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:

1. Tuition and Miscellaneous Fees; and 2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores

Iocated within its premises, owned and operated by STA. CLARA PARISH SCHOOL INC., to be actually, directly and exclusively used for educational purposes.

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

This certification shall be valid from the date of issuance until revoked by this Office fot violation of any provisions of applicable rules and regulations of the BIR, or the terms and purpose or method of operation of the corporation which are inconsistent with the basis for its conditions herein set forth. It shall likewise be revoked if there are material changes in the.character.

income tax exemption.

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.

Issued this day ofJUL 2 4 2Bi9

CAESAR R. DULAY

K- 1/spf1 80963 Commissioner of Internal Revenue 027136

STA. CLARA PARISH SCHOOL, INC Page 2 of 3 CTE No Date issued 0408-2019 JUL 242U9

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

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

TAX EXEMPTION

1) INCOME TAX. STA. CLARA PARISH SCHOOL,INC. is exempt from the payment of

It is understood that the school must continue to meet the foilowing requisites 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.

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

STA. CLARA PARISH SCHOOL. INC.'s interest income from currency bank deposits and

of its purpose as an educational institution, are exempt from the 20% final tax and 15%' tax National Internal Revenue Code of 1997, as amended, subject to compliance with the yield from deposit substitute instruments used actually, directly and exclusively in pursuance under the expanded foreign currency deposit system imposed under Section 27(D)(1) of the

conditions that as a tax-exempt institution it shall on an annual basis submit to the Revenue District Office concerned an annual information return and duly audited financial statement together with the following:

a Certification from their depository bank as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and

15% 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

C Board Resolution by the school administration on proposed projects (i.e. 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. 137- 87

2) VALUE ADDED TAX (VAT) ON.EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the NIRC, STA. CLARA PARISH SCHOOL,INC.'s gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT. Moreover. revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of STA. CLARA PARISH SCHOOL, INC. are exempt from taxation provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX STA. CLARA PARISH SCHOOL,.INC. is subject' to income tax on "all its

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

I Republic Act No. 10963 increased the tax rate from.7.5% to 15% effective Jan. 1, 2018 2 Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

STA. CLARA PARISH SCHOOL, INC Page 3 of 3 CTE No. Date issued 0408-2013 2 4.2019

NIRC, 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. Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

2) " VALUE ADDED TAX/PERCENTAGE TAX If STA. CLARA PARISH SCHOOL. 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 exceed Three Million Pesos (f3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

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

STA. CLARA PARISH SCHOOL, 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 makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES 1) STA. CLARA PARISH SCHOOL, 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 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 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 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 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 National Internal Revenue Code of 1997, as amended.

3 Republic Act No. 10963 increased theVAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan. 2018