BIR Ruling No. 412-2018

REPUBLIC OF-THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City.

Certificate of Tax Exemption No. 412-2018

CERTIFICATE OF TAX EXEMPTION issued to

ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. Sta. Rosa Poblacion, Nueva Ecija 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

Tuition Fees & Other School Related Fees; and Income derived from the operation of cafeterias/canteens and ROSE OF LIMA CATHOLIC SCHOOL, INC. to be actually, directly and exclusively used for educational purposes. bookstores located within its premises, owned and operated by ST.

nothing follows.

liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an 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.

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and 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 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 nuil 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 0 9 208

20

CAESAR R. DULAY

K-1 Commissioner of Internal Revenue 01422

ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. Page 2 of 4 CTE No. 412-2018 Date issued 3-9-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX.

ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. is exempt from the payment of income tax only on 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:

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

ST. ROSE OF LIMA CATHOLIC SCHOOL, 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 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: 1997, as amended, subject to compliance with the conditions that as a tax-exempt

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

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

(c)Board Resolution by the school administration on proposed projects 4, Finance Department Order No. 137-87). (i.e., 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 banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES

non-profit educational institution are exempt from VAT. LIMA CATHOLIC SCHOOL, INC.'s gross receipts from operations as a non-stock, Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, ST. ROSE OF

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

ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. Page 3 of 4 Date issued 3~9-2018 CTE No. 412-2018

LIABILITY FOR INTERNAL REVENUE TAXES : 1) INCOME TAX

2) VALUE ADDED TAX/PERCENTAGE TAX or any activity conducted for profit, which income should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived from any of its properties, real or personal ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or (P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed P1,919,500.00. VAT pursuant to Sections 106 and +07 of the National Internal Revenue Code of 1997, as revenue.derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos amended. If ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its properties or services and importation of goods shall nevertheiess be subject to the 12%

3) WITHHOLDING TAX

Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. shall be constituted as withhoiding income subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the income payments to individuals or corporations subject to the withholding tax pursuant to amended. NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes agent for the government if it acts as an employer and its employees receive compensation

TAXPAYER DUTIES & RESPONSIBILITIES 1) ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. is required to file on or before the Return. Certificate of Tax Exemption shall be attached to the aforementioned Annual Information that there has not been any change in its By-laws, Articies of Incorporation, manner of 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 showing operation and activities as well as sources and disposition of income. Copy of this 15th day of the fourth month following the end of the accounting period a Profit and Loss

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any incentives, and its tax liabilities, if any. provision of existing general and special law to the contrary notwithstanding, the books of 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 accounts and other pertinent records of tax-exempt organization or grantees of tax

Page 4 of 4 ST. ROSE OF LIMA CATHOLIC SCHOOL, INC. Date issuedFozo8 CTE No.

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Memoradum Circular No. [RMC] No. 76-2003). 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

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.

I-

.-

.- -. .