BIR Ruling No. 556-2017

REPUBI - ^ OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

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"Certificate of Tax Exemption No. 556-2017

CERTIFICATE OF TAX EXEMPTION

issued to

GUARDIANS BONA FIDE FOR HOPE FOUNDATIONINC. Unit 307, Balagtas Villas. Balagtas St.. Pasay City SEC Company Reg. No. I'IN

proven by actual operation that its primary purpose is one of those enumerated under Section 30(H) of the National Internal Revenue Code of :997. as amended. It is exempt from INCOME TAx only on the following revenues or receipts: This certifies that the above-named entity is a non-stock, non-profit corporation and has

2 Income derived from the operation of cafeterias/canteens, dormitories. Tuition Fees and other school related fees: Donations; and Guardians Bona Fide for Hope Foundation, Ine. to be actually, directly and exclusively used for educational purposes. and bookstores located within its premises, owned, and operated by

nothing follows.

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 integral part hereof. It is liable. however. to al other taxes not enumerated above.

basis for its income tax exemption. character. purpose or method of operation of the corporation which are inconsistent with the conditions herein set forth. It shall likewise be revoked if there are material changes in the for violation of any provisions of applicable 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 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 DEC 0 6 2017

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K-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY w"011463

GUARDIANS BONA FIDE FOR HOPE FOUNDATION INC (TE No. Date issued _1 3-.7 207

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION 1) INCOME TAX

GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC. is exempt from the payment of income tax oniy on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to ineet 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 educational purposes

Seclion 27 (D) (1) of the National Internal Revenue Code of :997. as amended. subject to in pursuance of its purpose as an educational institution. are exempt from the 20% final tax and 7 compliance with the conditions that as a tax-exempt educational institution it shall on an annual basis subimit to the Revenue District Office concerned an annual information return and duly audited financial statement together with the following: GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC.'s interest income from currency bank deposits and yield from deposil substitute instrunents used actually. directly and exclusively 1/2% tax on interest income under the expanded foreign currency deposit system imposcd under

a) Certification from their depository banks as to the amount of interest income System imposed by Section 27 (D) (1) of the National Internal Revenue Code of 1997. as amended; earned from passive investiment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit

b) Certification of actual utilization of the said income: and c) Board Resolution by the school adininistration on proposed projects (i.e.. banks or placed in money markets, on or before the 15th day of the fourth 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 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. GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC.'s groSs receipts from operations as a non-stock, non-profit educational institution are exeinpt from VAr. LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX

its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax National Internal Revenue Code of 1997. as amended, on its incoime derived from any of its properties. real or personat, or any activity conducted for profit, which income should be returned GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC, is subject to income tax on all Exemption. Moreover. it is subject to the corresponding internal revenue taxes imposcd under the

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

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GUARDIANS BONA FIDE FOR HOPE FOUNDATION, ING. Dare issued (m2017 CTF NO. 556.2017

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

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

goods or services in the course of a business pursuit, including transactions incidental thereto. its receipts from such sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1.919.500.00). if GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC. is engaged in the sale of revenues derived therefrom shall be subject to the twelve percent (12%) VAT, in case thc gross (P1.919,500.00). or to the three percent (3%) percentage tax. if gross receipts do not exceed One

Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or properties or services and importation of goods shall nevertheless he subject to the 12% VAT' purstant to Sections 106 and :07 of the National Intermal Revenue Code of 997. as amended. 3) WITHHOLDING TAX

GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC. shall be constituted as No. 2-98, as amended, or if it makes income payments to individuals or corporations subject to the and as implemented by Revenue Regulations No. 2-98, as amended. withholding agent for the government if it acts as an employer and its empioyees receive compensation income subject to the withholding tax under Section 79 (A), Chapter XHI1. Title I1 of the Nationai Internal Revenue Code of 1 997, as amended, as implemented by Revenue Regulations withholding tax pursuant to Section 57 of the National Internal Revenuc Code of 1997. as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

} GUARDIANS BONA FIDE FOR HOPE FOUNDATION, INC. is required to fi|c on or before 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 Rcturn. the 15th day of the fourth month following the end of the accounting period a Protit and Loss Statement and Balance Shcel 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

2) Under Section 235 ot' the National Internal Revenue Code of (997. 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 inccntives 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. it any. 3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internal 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} Revenue Code of 1997. as amended, to issue duly registered receipts or sales or commercia!

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. W

TK-I-LMAT

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