BIR Ruling No. 46-2018

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No. 046-2018

CERTIFICATE OF TAX EXEMPTION

issued to

LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION E LA SALLE - COLLEGE OF SAINT BENILDE), INC. SEC Company Reg. No. 2544 Taft Avenue, Manila TIN:

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: Section 30(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from This certifies that the above-named corporation is a non-stock, non-profit corporation

1.Tuition fees and Other school fees; 3.. Income derived from operation of cafeterias/canteens, dormitories and 2. Donations; and EDUCATIONALINNOVATORS FOUNDATION DE LA SALLE COLLEGE OF SAINT BENILDE), INC., to be actually, directly and bookstores located within its premises, owned and operated by LA SALLIAN exclusively used for educational purposes.

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 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 ascer 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 ana

Issued this day of JAN 24 2018

CAESAR R.DULAY

Commissioner of Internal Revenue K-1-JAC cuic.(u

CELIA C.KING

Deputy Commisstone

pement.aro

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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. LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION @E LA

SALLE - COLLEGE OF SAINT BENILDE), 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

LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION (DE LA SALLE COLLEGE OF SAINT BENILDE), INC:'s interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are exempt 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 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 the following: income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of

system imposed by Section 27 (D). (1) of the National Internal Revenue Code and 7 1/2% tax on interest income under the expanded foreign currency deposit (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 of 1997, as amended;

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

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. (c)Board Resolution by the school administration on proposed projects (i.e., construction and/or improvement of school buildings and facilities, acquisition banks or placed in money markets, on or before the 15th day of the fourth month 137-87)

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section non-stock, non-profit educational institution are exempt from VAT. LA SALLE - COLLEGE OF SAINT BENILDE),INC.'s gross receipts from operations as a 109(1)(H) of the NIRC,LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION DE

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION @E LA SALLE COLLEGE OF SAINT BENILDE). INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

Department Order No. 149-95 dated November 24.1995 amending Department Order No 137-87

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

2) VALUE ADDED TAX/PERCENTAGE TAX

If LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATION DE LA SALLE - COLLEGE OF SAINT BENILDE), 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 is One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the 3% percentage 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

LA SALLIANEDUCATIONALINNOVATORSFOUNDATION DELA SALLE COLLEGE OF SAINT BENILDE), 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) LA SALLIAN EDUCATIONAL INNOVATORS FOUNDATIONDE LA SALLE 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- of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned COLLEGE OF SAINT BENILDE),INC. is required to file on or before the 15th day of the fourth laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition 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 No. [RMC] No..76-2003). 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 invoices for each sale or transfer of merchandise or for services rendered which are not directly

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.