BIR Ruling No. 344-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

344-2017

CERTIFICATE OF TAXEXEMPTION

issued to

UNIVERSITY OF THE ASSUMPTION.INC.

Unisite Subd.,Del Pilar, City of San Fernando, Pampanga SEC Company Reg. No TIN

This certifies that the above-named corporation is a non-stock, non-profit corporation

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

Tuition Fees, Miscellaneous Fees, & Other School Related Fees: and Cafeterias/canteens and bookstores sales located within the premises. owned, and operated by University of the Assumption, Inc.

nothing follows

subject to the provisions of applicable BIR rules and regulations and the tax exemptions. integral part hereof. It is liable, however, to all other taxes not enumerated above. 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 This certification shall be valid from the date of issuance until revoked by this Office

basis for its income tax exemption.

documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

that the facts are different, then this Certificate shall be considered null and void.

Issued this day of_JUL 12 2017

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Commissioner of Internal Revenue CAESAR R.DULA 007665

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UNIVERSITY OF THE ASSUMPTION, INC Date issued 7--12--20 17 CTE No. 344-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

D) INCOME TAX

UNIVERSITY OF THE ASSUMPTION, 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:

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

purposes.

UNIVERSITY OF THE ASSUMPTION, INC.'s interest income from currency bank deposits

of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on and yield from deposit substitute instruments used actually, directly and exclusively in pursuance 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 concerned an annual information return and duly audited financial statement together with the following:

a) Certification from their depository banks as to the amount of interest income

of 1997, as amended: 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

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

c) Board Resolution by the school administration on proposed projects (i.e.. 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 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 No.137-87

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

Pursuant to Section 109(H) of the National Internal Revenue Code of 1997. as amended. non-profit educational institution are exempt from VAT. UNIVERSITY OF THE ASSUMPTION,INC.'s gross receipts from operations as a non-stock.

LIABILITY FOR INTERNALREVENUE TAXES

1 INCOME TAX

UNIVERSITY OF THE ASSUMPTION, INC. is subject to income tax on all its National Internal Revenue Code of 1997, as amended, on its income derived from any of 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

properties, real or personal, or any activity conducted for profit, which income should be returned

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

UNIVERSITY OF THE ASSUMPTION, INC. CTE No.342017 Date issued 7122017

for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX (VAT)

If UNIVERSITY OF THE ASSUMPTION, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, in general, it shall be liable for VAT on the revenues derived therefrom.

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 National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

UNIVERSITY OF THE ASSUMPTION, 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 National Internal Revenue Code of 1997, as amended, 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 National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) UNIVERSITY OF THE ASSUMPTION, 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

disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources and

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

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