BIR Ruling No. 456-2018

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUKEAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

456-2018

CERTIFICATE OF TAX EXEMPTION

issued to

HOLY ROSARY ACADEMY-GUIMARAS,INC.

Concordia,Nueva Valencia. Guimaras 5046 SEC Company Reg. No. TIN:

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

Tuition Fees & Other School Related Fees; and Income derived from the operation of cafeterias/canteens, dormitories Holy Rosary Academy-Guimaras, Inc. to be actually, directly and exclusively used for educational purposes. and bookstores located within its premises, owned, and operated by

nothing follows

integral part 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

conditions herein set forth. It shali likewise be revoked if there are material changes in the character, purpose or method of operation of the corporation which are inconsistent with the for violation of any provisions of applicable rules and regulations of the BIR. or the terms and 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 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

Issued this day of. AR 1 3 2018

1ouny oe

K-1-YDPM/LMAT Commissioner of Internal Revenue CAESAR R. DULAY 014279

HOLY ROSARY ACADEMY-GUIMARAS,INC. Date issued _3-13-2018 CTE No.456-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1 INCOME TAX

HOLY ROSARY ACADEMY-GUIMARAS, 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 educationai

purposes.

HOLY ROSARY ACADEMY-GUIMARAS, 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 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

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

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(H) of the National Internal Revenue Code of 1997, as amended, HOLY

ROSARY ACADEMY-GUIMARAS, INC.'s gross receipts from operations as a non-stock. non-

profit educational institution are exempt from VAT.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

HOLY ROSARY ACADEMY-GUIMARAS, 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 taxes imposed under the

National Internal Revenue Code of 1997, 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

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

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HOLY ROSARY ACADEMY-GUIMARAS,INC Date issued _313m2018 CTE No._456=2018

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

purposes.

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

If HOLY ROSARY ACADEMY-GUIMARAS,INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived therefroin shall be subject to the twelve percent (12%) VAT, in case the gross receipts from such or to the three percent (3%) percentage tax, if gross receipts do not exceed One Million Nine sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00). Hundred Nineteen Thousand Five Hundred Pesos (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 National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

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 HOLY ROSARY ACADEMY-GUIMARAS, INC. shall be constituted as withholding agent for 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.

TAXPAYERDUTIES& RESPONSIBILITIES

1)HOLY ROSARY ACADEMY-GUIMARAS, 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 related to the activities for which the Association is registered. (Revenue Memorandum Circular 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 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.

&K-1-LMAT

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