BIR Ruling No. 704-2019

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

0704-2019

CERTIFICATE OFTAXEXEMPTION

issued to

MOTHER RITA DE BARCELO FOUNDATION,INC. AMP Mission Center 1029 P. Noval St. Zone 046 Brgy. 465 Sampaloc, Manila 1008 SEC Company Reg. No. TIN:

National Internal Revenue Code (NIRC) of 1997, as amended. It is exempt from INCOME and has proven by actual operation that its primary purpose falls under Section 30 (E) of the TAX only on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Grants and Donations. 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

earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR, or the terms and conditions herein set forth. This certification shall be valid for three (3) years from the date of issuance unless

Certificate shall be deemed a revocation, thereof upon the expiration of the three (3)-year provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this period. This Certificate may be renewed upon filing of a subsequent application for revalidation

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_NOV 2 72019

Masayee

CAESAR R.DULAY Commissioner of Internal Revenue

K-1-JAC -030628

Page 2 of 3 Mother Rita De Barcelo Foundation, Inc. CTENo.0704 -2013 Date issuedNOV 2 7 2019

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. MOTHER RITA DE BARCELO FOUNDATION,INC.is only

exempt from the payment of income tax on revenues and receipts enumerated on the

Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX

MOTHER RITA DE BARCELO FOUNDATION,INC.is subject to income tax on all

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

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 regardless of the disposition thereof, which income should be returned for taxation.

Likewise, interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements. and royalties derived from sources within the Philippines are subject to the twenty percent

to Sec.57(A) both of the National Internal Revenue Code of 1997, as amended depository bank under the expanded foreign currency deposit system shall be subject to fifteen percent (15%) final withholding income tax pursuant to Section 27(D)(1) in relation 20%) final withholding tax: Provided, however, that interest income derived by it from a

2) VALUE ADDED TAX/PERCENTAGE TAX

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 If MOTHER RITA DE BARCELO FOUNDATION,INC. is engaged in the sale of receipts from such sales exceed Three Million Pesos (P3,000,000.00)2, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods on 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

Internal Revenue Code of 1997,as amended,as implemented by Revenue Regulations No. 2-98, as amended. MOTHER RITA DE BARCELO FOUNDATION, INC.shall be constituted as withholding agent for the government if it acts as an employer and its employees receive or corporations subject to the withholding tax pursuant to Section 57 of the National 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 makes income payments to individuals

Republic Act No.10963 increased the tax rate from 7.5% to 15% effective January 1,2018. 2Republic Act No.10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1,2018

Mother Rita De Barcelo Foundation, Inc. Page 3 of 3 CTE No. Date issued NOV 2 7 2019 0704-2019

TAXPAYER'S DUTIES & RESPONSIBILITIES

MOTHER RITA DE BARCELO FOUNDATION, 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 showing that there has not been any change in its By-laws, Articles of Incorporation. 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 this Certificate of Tax Exemption shall be attached to the aforementioned Annual manner of operation and activities as well as sources and disposition of income. Copy of 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 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.