BIR Ruling No. 718-2019

REP_YK JF THE PHILIPPINES

DTUMENTOF HINANCE EUREAUCF INTERNAL REVENUE

QLezon Ci

Certifieate of Tax Exemptior: vo

CERTIFICATE TFTAXEXEMPTION

tssued to

SMILE TRAIN PHILIPPINES FOUNDATIONINC

22 East Avenue, Brgy. Pinyahan. Dim:n. Quezon City

T SEC Coput Reg. No.

pr en by uetual operation that its prirary ourpose is one of those enumerated under Sectior This certiries that the above-inan.ed atity is a non-stock, non-profit corporation and nas

3: (: ore National Internal keveue Eode Jf 1997,as anended. It is exempt from INCONE I-.. J: an the following revenues c: reeeipts.

Donaticns and grars

Lo hing foilows

intezral part hereor. It is niabie. hov ever. :o all other taxes not enumerated above. stject i He previsions of applicabie EIR rules and regulations and the tax exemplions. Habiies ard respensibilities stated in he Terms and Conditions hereto attaehed and mnde an

re osaa by tnis Ofrice for violation f ary provisions of applicable rules and regulations or the BiR. or the terms and condiuons herein set fortn. Hhis certificuticn shali be ai:d for three (3) years from the date of issuance until

Cetifieate shali be deemed a revovsuct: thereof upon the expiration of the three 3-year provid under Revenue Memorancun. O-der (RMO) No. 20-2013. Failure to renew this This Cerrificate may be renewed -on filing of a subsequent application for revalidation

eiod

thu: the rasis are di ferent, then this Hertfieate shall be considered null and void. i cumenis as represaned and subm.ttea. Houever. if upon investigation, the BiR ascertains Ths Certifieare of Tax Extmpuion is being issued on the basis of the facts and

issted eris aay cr

OAA

Commissioner of Internal Rev enuc CAESAR R. DULAY

-ESS 030693

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SMILE TAANS PRIL.PPINES FOJNDATION, INC. Pee.fa CTE NC Date issuea:[ 1

TEIMS AND COMDTIONS OF THE CERTEFICATE OF TAX EXEMPTION

TAN EXEMPTION

I INCCME TAY

SKLEIRaIN PHILIPPINESEDATION INC. is exempt from the payment of income tax only on revenues anc re:eipts enumerated on the Certificate of Tax Exemption. Ivioreover, to be entitled to the tax: exemptions enumerated herein, the association, corporation or organization must continue to nteer the requirements set forth under Revenue Memorandum Oraer No. 20-2013.

LIAHIITYFONINTERNALREVENETAXES

T HCOMETAY

its properties, real or personal. or any activity conducted for profit regardless of the disposition L semption. Moreover. it is subject te the corresponding internal revenue taxes imposed under the Natioral Internal Revenue Co e of 1997, as amended, on its income derived from any of SMLE TKaIs PHILIPPINES FCT DATION,INC.is subject to income taX on all its inco.ne/receipts/revenues not expressiy"exempted and stated in the Certificate of Tax thereof. which incoine should be reuurnea for taxation: Thus, dividend income received by the Ioundation is subject to taxation.

dapository bank under the expanded foreigi currency deposit system shall be subject to fifteen 57{A; bsin of tn: National Internai Reveriue Code of 1997, as amended. pereent (15%') final withholding iiccme rex pursuant to Section 27(D)(l) in relation to Sec. L ikewvise. interest inccme frcm curreriey bank deposits and yield or any other monetary benefits from deposit substitute irstrur:s.ts and from trust funds and similar arrangements. and royalties derived from sources witnin the Pnilippines are subject to the twenty percen {20/o) firal witlhciding tax: Pro-idea, hovever, that interest income derived by it from a

P VALUEADDEE TAX/PERCENT-GE TAX

such saies exceed Thtee Million Pesos (3.000.000.00). or to the 3% percentage tax, it gross if SMiETRAINPHILIPPINESFOtMLIIGN INC. is engaged in the sale of goods a services in the course of a business gursuit. including transactions incidental thereto, is revenues derived thererrom shall be sub;est u the 12% VAT, in case the gross receipts from receipts do not exceed P3.000,600.50.

Notiustanding that it is a nor-stock. nsn-profit corporation, its purchase of goods or properties or services and importati on of geods shall nevertheless be subject to the 12% Value- aaied ta. pursuant to Sections 106 and 10? of the National Internal Revenue Code of 1997, as aneaea.

Pep-L: -t ic 12963 incre35ec the VAT threshold fror. 1.519s0...., F3.50 39C.00 effect.ve January 1,2018 Kc. T9e3 increasea tne tax rate from 7.5% ic 1e% afeLt .e .anu2^, 1 20i8

:

SE -ILPINES -OL'DATiCIN. INC. CTE NG PE2 D2teiSsLea' 3THHOLDNG TAX

SHLE.TRIN PHILIPPINES FOt MTION INC. shall be constituted as withheding agent fer the government if it act: as at omployer and its employees receive compensation Reguiati.ns No. 2-98. as ameniei. e: if it mates income payments to individuals or Re-enu: Ccde cr 1997. as amend.d. as irnniemented by Revenue Regulaticns No. 2-98, as necne subject o the withholding ta: unaer Secrion 79 (A) Chapter XIli, Title H of the Nationai internal Revenue Code of Ga7. as anerded. as impiemented by Revenue ec-poratins subiect to the witnhordin2 t#x pursuant to Section'57 of the National Internal

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TANYYER'S DUTIES &RESPONSIEILITIES

+) SMtLE TRaIN PHILIPPINES FOONDaTION. INC. is required to file on or before the ac Hies as wel: as sources and dispesi:ion of income. Copy of this Certificate of Tax Eernotior shall te attached to the ufo erentioned Annual Information Return. hre :me and expenses incurred durig .: preceaing period and a certificate showing that there has . teen any change in ils By -ia... 15th da, of the fourth month folicwins th.s end of the accounting period a Profit and Loss Siatemer.t and Batance Sheet with tre -nr:uat information Return under oath, stating its gross -irticies of Incorporation, manner of operation and

2; tntier Secion 235 of the National internal Revenue Code of 1997. as amended, any provision - existing general atid special law te the contrary notwithstanding, the books of accounts and Gther pertinent recoras of tax-exempi orgeniration or grantees of tax incentives shall be subject r, exaniation by he BIR for purposes of :scertaining compliance with the conditions under *iien it has been granted tax exeirpiicis ar tax incentives, and its tax liabilities, if any.

- : r uer. it :s aiso resuied under Sectio: o.C:, in: retation to Section 237 ofthe National Internal ( Cu . (RMC} No. 76-2003} R .ene tode of 1997, as amended. wo i:se duly registered receipts or sales or commercial in' oiees Fos each saie cr transter of nerehandise or for services rendered which are not directly rei-lca to the activities for which tha Ccrporation is registered. (Revenue Memorandum

+; Finary. i is sub.ect to the paymert cf.--istration fee of PhP500.00 as prescribed in Section -56(B) ot the National Internal Re: erae C ode of 1997, as amended.