BIR Ruling No. 401-2018

LUREAU OF INTERNAL REVENUE DEPARTMENT OF HINANCE

Certificate of Tax Exemption No. 401-2018

1

CERTIFICATE OFTAXEXEMPTION

Iss:ved to

OURLAOY GF PEACE ACADEMY.INC SEC Company Reg. No. Pobiacion.Tuy,Batangas 4214 TIN

INCOME TAX only on the following revenues or receipts: and has proven by actual operation that its primary purpose is one of those enumerated under Section 30 (H) of the Naticral Internal Revenue Code of 1997. as amended. It is exempt from This certifies that tne aoove-named corporation is a non-stock, non-profit corporation

Tuition Fees & Other Scioo: Keinted I ees; aad Income derived fron the operatioa of catererias/eanteens, dormitories. Our Lady of Pence Acauemy, Inc. te be actually,:directly, and exclusiveiy used for v ucational pu poses. 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

basis for its income tax exemption. conditions herein 'set forth. It shall 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 vioiation of any provisions of anplicable rules and regulations of the BIR, or the terms and 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 considercd 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 MAR G 9 2018

18amy

h-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 014173

OUR LADY OF PEACE ACADEMY, INC. Date issued -3-9--2018 CTE No. 401-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX

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: OUR LADY OF PEACE ACADEMY,INC. is exempt from the payment of income tax only on

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

purposes.

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: OUR LADY OF PEACE ACADEMY, 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

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 of 1997, as amended; 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

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

c) Board Resolution by the school administration on proposed projects (i.e. banks or placed in money markets, on or before the 1Sth day of the fourth No. 137-87). month following the end of its taxable year (Sec. 4, Finance Department Order 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

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

educational institution are exempt from VAT. LADY OF PEACE ACADEMY, INC.'s gross receipts from operations as a non-stock, non-profit Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, as amended, OUR

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

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 OUR LADY OF PEACE ACADEMY, INC. is subject to income tax on all its income/ unless said revenues are actually, directly and exclusively used for educational purposes. receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. or personal, or any activity conducted for profit, which income should be returned for taxation.

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

PAGE 2OF3

OUR LADY OF PEACE ACADEMY INC Date issued CTE No. 401-2018 3-9-2018

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

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 saies exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the three percent (3%) percentage tax, if gross receipts do not exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,9.19,500.00). If OUR LADY OF PEACE ACADEMY, INC. is engaged in the sale of goods or services in the

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties or services and importation of goods shali 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

Regulations No. 2-98, as amended. OUR LADY OF PEACE ACADEMY, INC. shall be constituted as withholding agent for 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 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 implemiented by Revenue

TAXPAYER DUTIES & RESPONSIBILITIES

1) OUR LADY OF PEACE ACADEMY, 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 : :

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 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 aforementioned Annual Information Return. :

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to existing general and special law to the contrary notwithstanding, the books of accounts and other 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 No. [RMC] No. 76-2003). 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

4)Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.

-K-I-LMAT

PAGE 3 OF 3