BIR Ruling No. 388-2021

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

3H150* 5* *

CERTIFICATE OF TAX EXEMPTION

issued to

Sacred Heart of Jesus Parish, Brgy. San Simon, DBB-C, Dasmarinas Cavite SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE, INC. SEC Company Reg. No. FIN:

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

2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores 1. Tuition and matriculation fees; and exclusively used for educational purposes. located within its premises, owned and operated by SACRED HEART'OF JESUS ACADEMY OF DASMARINAS CAVITE, INC. to be "actually, directly and

nothing follow

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 integral part

violation of any provisions of applicable rules and regulations of the BIR. or the terms and income tax exemption. 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 This certification shall be valid from the date of issuance until revoked by this Office for

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 documients

Issued this day of OCT 1 8 2021

10&80W

Commissioner of Internal Revenue CAESAR R. DULAY W 046374

SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE INC. Page 2 of 3 CTE No. 9 Date issucd UCI SU30-.388-/ 3 2 i 82U2

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPT'ON For Non-Stock, Non-Profit Educational Institution

under Section 30 (H) of the National Internal Revenue Code of 1997, as Amended

TAX EXEMPTIONS U) INCOME TAX. SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE, INC. is eXeMpt 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: from the payment of income tax only on revenues and receipts enumerated on the

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

exempt from the 20% final tax and :5%1 tax under the expanded foreign currency deposit and duly audited financial statement together with the following: SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE, INC.'s interest income from currency bank deposits and xield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are an annual basis submit to the Revenue District Office concerned an annual information return 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-exermpt institution it shall on

a) Certification from their depository bank as to the amount of interest income imposed by Section 27 (D)(1) of the National Internal Revenue Code of 1997, as 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 amended.

b Certification of actual utilization of the said income; and

( Board Resolution by the school administration on proposed projects (i.e. banks or placed in money markets, on or before the 1 Sth day of the fourth month of equipment, books and the like) to be funded out of the money deposited in following the end of its taxable year (Sec. 4, Finance Department Order No. 137- construction and/or improvement of school buildings and facilities, acquisition 87

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES ACADEMY OF DASMARINAS CAVITE, INC, are exempt from taxation provided they are Pursuant to Section 109 (1)(H) of the National Internat Revenue Code of 1997, as amended. SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE INC.'s grOSS receipts from operations as a non-stock, non-profit educational institutions are exempt from dormitories and bookstores located within the premises of SACRED HEART OF JESUS owned and operated by it as ancillary services. VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens,

LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE, 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

: Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018 Department Order No. 149-95 dated November 24. 1995 amending Departmenit Order No. 13'7-87 Q

Page 3 of 3 SACRED HEARTOF JESUS ACADEMY OF DASMARINAS CAVITE INC. CTE No.S4"30 --. 3 8 8 - 2 0 2 1 Date issued UCI8 20Z1

taxes imposed under National Internal Revenue Code of 1997, as amended, on its income exclusively used for educational purposes. 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

2) VALUE ADDED TAX/PERCENTAGE TAX 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 (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. If SACRED HEART OF JESUS ACADEMY OF DASMARINAS CAVITE. INC. is

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties, services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 to 108 of the Nationat Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX constituted as withholding agent for the government if it acts as an employer and its employees 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 National Internai Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as SACRED HEART OF JESUS ACADEMY-OF DASMARINAS CAVITE,INC. shail be receive compensation income subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the National Internal Revenue Code of 1997, as amended, as implemented by amended.

TAXPAYER DUTIES & RESPONSIBILITIES 1) The honoraria/allowances given to members of the Board of Trustees must be reasonable and subject to liquidation (DOF Opinion No. 005-2019).

2) 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 and a certificate showing that there has not been any change in its By-laws, Articles of Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Return under oath, stating its gross income and expenses incurred during the preceding period Incorporation, manner of operation and activities as well as sources and disposition of income. Information Return.

3) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision 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. of existing general and special law to the contrary notwithstanding, the books of accounts and

4) 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).

5) 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.

20 8 3 Repubtic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan.