BIR Ruling No. 381-2018

HTER BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES "DEPARTMENT OF FINANCE

Quezon City.

Certificate of Tax Exemption No.

321-2015

CERTIFICATE OF TAX EXEMPTION

issued to

ALLIANCE GRADUATE SCHOOL.INC. 101 Dangay St., Project 7. Veterans Village I, Quezon City 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

I Tuition Fees & Other School Related Fees; and

Income derived from the operation of cafeterias/canteens, dormitories. and bookstores located within its premises, owned, and operated by Alliance Graduate Schoot, 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. Hiabilities and responsibilities stated in the Terms and Conditions hereto attached and made an integrai part hereof. It is liable, however, to all other taxes not enumerated above.

basis for its income tax exemption. 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 materiat 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

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 MAR 0 8 2013

a

EK-I-LMAT Commissioner of Internat Revenue CAESAR R. DULAY 014103

I Formerly: Alliance Biblical Seminary. Inc.

ALLIANCE GRADUATE SCHOOL, INC. Date issued _3-5-20 CTE No. -2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX

the school must continue to meet the following requisites as set forth under Revenue Memorandum 'revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that Order (RMO) No 44-2016, to wit: ALLIANCE GRADUATE SCHOOL, INC. is exempt from the payment of income tax only on

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

purposes.

the following: 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 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 income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of ALLIANCE GRADUATE SCHOOL, INC.'s interest income from currency bank deposits and

a) Certification from their depository banks as to the amount of interest income 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; earned from passive investment not subject to the 20% final withholding tax

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

c): Board Resolution by the school administration on proposed projects (i.e., of equipment, books and the like) to be funded out of the money deposited in construction and/or improvement of school buildings and facilities, acquisition banks or placed in money markets, on or before the ISth day of the fourth month folilowing the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)2. 2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, as amended. profit educational institution are exempt from VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories, and bookstores located within the premises of ALLIANCE GRADUATE SCHOOL, iNC. are exempt from taxation provided they are owned ALLIANCE GRADUATE SCHOOL, INC.'s gross receipts from operations as a non-stock, non- and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

ALLIANCE GRADUATE SCHOOL, 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

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

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ALL IANCE GRADUATE SCHOOL, INC. Date issued_3-8-2018 CTE No._381-2018

Nationial Internal Revenue Code of 1997. as amended, on its income derived from any of its for taxation. unless said revenues are actually, directly and exclusively used for educational properties, real or personal, or any activity conducted for profit, which income should be returned purposes

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

tf ALLIANCE GRADUATE SCHOOL, INC. is engaged in the sale of goods or services in the sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00) Hundred Nineteen Thousand Five Hundred Pesos (P1,9: 9,500.00). course of a business pursuit, including transactions incidental thereto, its revenues derived therefrom 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

Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties or services and importation of goods shall nevertheiess be subject to the l2% VAT pursuant to

3) WITHHOLDING TAX

withholding tax under Section 79 (A), Chapter XI1, Title II of the National Internal Revenue Code 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98. as amended. government if it acts as an employer and its employees receive compensation income subject to the 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 ALLIANCE GRADUATE SCHOOL, INC. shall be constituted as withholding agent for the

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

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. 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 shalt be subject to examination by the BiR for purposes of ascertaining compliance with the conditions under which

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 No. [RMC] No. 76-2003). related to the activities for which the Association is registered. (Revenue Memorandum Circular

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-I-LMAT

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