BIR Ruling No. 495-2018

REPUBLICOFTHEFHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

495-2018

CERTIFICATE OF TAX EXEMPTION

issued to

RESURRECTION CATHOLIC SCHOOL, INC.

Pagkabuhay Rd., Brgy. Bagbag,Novaliches,Quezon City

TIN: SEC Company Reg. No.

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; and

2 Income derived from the operation of cafeterias/canteens, dormitories and

bookstoreslocatedwithinitspremises, ownedandoperatedby RESURRECTION CATHOLIC SCHOOL,INC.,to be actually,directly and exclusively used for educational purposes.

nothing 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.

conditions herein set forth. It shall likewise be revoked if there are material changes in the basis for its income tax exemption. for violation of any provisions of applicable rules and regulations of the BIR, or the terms and] 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

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

Issued this day of AR 142018

1am

K-I-JAC Commissioner of Internal Revenue CAESAR R.DULAY 014308

Resurrection Catholic School, Inc. Page 2of3 Date issued 3 CTE No. 495-2018 -14-2016

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.RESURRECTION CATHOLIC SCHOOL,INC.is exempt from the payment 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: of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption.

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

Revenue District Office concerned an annual information return and duly audited financial interest income under the expanded foreign currency deposit system imposed under Section 27 (D) conditions that as a tax-exempt educational institution it shall on an annual basis submit to the statement together with the following: 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 15%' tax on (1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with the RESURRECTION CATHOLIC SCHOOL, INC.'s interest income from currency bank deposits

earned from passive investment not subject to the 20% final withholding tax and 15% tax on interest income under the expanded foreign currency deposit of 1997, as amended; (a)Certification from their depository banks as to the amount of interest income system imposed by Section 27 (D) (1) of the National Internal Revenue Code

(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 banks or placed in money markets, on or before the I Sth day of the fourth month 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 137-87)2.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(1)(H) of the NIRC, RESURRECTION CATHOLIC SCHOOL, INC.'s gross receipts from revenues derived from assets used in the operation of cafeterias/canteens and bookstores located taxation provided they are owned and operated by it as ancillary activities. operations as a non-stock, non-profit educational institution are exempt from VAT. Moreover within the premises of RESURRECTION CATHOLIC SCHOOL, INC._are exempt from

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax RESURRECTION CATHOLIC SCHOOL, INC. is subject to income tax on all its

1Republic Act No.10963 increased the tax rate from 7.5% to 15% effective Jamuary 01.2018. 2 Department Order No.149-95 dated November 24, 1995 amending Departinent Order No.137-87

Resurrection Catholic School, Inc. CTE No. 495-2018 Page 3 of 3 Date issued3-14.2018

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 exctusively used for educational purposes. Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

2) VALUE ADDED TAX/PERCENTAGE TAX

in the course of a business pursuit, including transactions incidental thereto, its revenues derived Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three If RESURRECTION CATHOLIC SCHOOL,INC.is engaged in the sale of goods or services P3,000.000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the NIRC. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3) WITHHOLDING TAX

the government if it acts as an employer and its employees receive coinpensation income subject to RESURRECTION CATHOLIC SCHOOL, INC. shall be constituted as withholding agent for 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 by Revenue Regulations No. 2-98, as amended. corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and as implemented

TAXPAYER DUTIES & RESPONSIBILITIES

1)RESURRECTION CATHOLIC SCHOOL,INC.is required to file on or before the 15th day of change in its By-laws, Articles of Incorporation, manner of operation and activities as well as Balance Sheet with the Annual Information Return under oath, stating its gross income and sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. the fourth month following the end of the accounting period a Profit and Loss Statement and expenses incurred during the preceding period and a certificate showing that there has not been any

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 RepublicAc No10963 increasedthe VAT threhold from P1.919.500.00 to P3.000.000.00ffective January01.2018.