BIR Ruling No. 616-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No.

616m2017

CERTIFICATE OF TAX EXEMPTION

issued to

S-10 Sunvar Plaza Arnaiz Ave. cor. Amorsolo St.. Legaspi Village, Makati City SEC Company Reg. No. LRP FOUNDATION, INCI TIN:

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

I. Donations.

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 all other taxes not enumerated above.

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

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failurc to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

period. Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year

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

that the facts are different. then this Certificate shall be considered null and void.

Issued this day ofDEC 1 i, 201?

Ao

K - I Commissioner of Internal Revenue CAESAR R. DULAY "0 117"2 2

LRP Foundation, Inc. Page 2 of 3 Date issued 1. -1+-2017 CTE No. 51m2 7

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. LRP 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

1) INCOME TAX

LRP FOUNDATION, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. Moreover. it is subject to the corresponding internal revenue taxes imposed under the NIRC 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.

depository bank under the expanded foreign currency deposit system shall be subject to 27(D)(1) in relation to Sec. 57(A) both of the NIRC. and royaities derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section

2) VALUE ADDED TAX

If LRP FOUNDATION INC. is engaged in the sale of goods or services in the course of a business pursuit. including transactions incidental thereto, in general, it shall be liable for VAT on the revenues derived therefrom.

properties or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the NIRC. Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or

3) WITHHOLDING TAX

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 NIRC, 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 NIRC, as implemented by Revenue Regulations No. 2-98, as amended. LRP FOUNDATION, INC. shall be constituted as withholding agent for the government if

LRP Foundation, Inc. Page 3 of 3 CI'E No. Date issued 12-14-201? 616-2017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) LRP 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 Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses

change in its By-laws, Articles of Incorporation, manner of operation and activities as weil incurred during the preceding period and a certificate showing that there has not been any as sources and disposition of income. Copy of this Certificate of Tax Fxemption shall be attached to the aforementioned Annual Information Return.

2) Under Section 235 of the NIRC, 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

tax exemptions or tax incentives, and its tax liabilities, if any. purposes of ascertaining compliance with the conditions under which it has been granted

3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC 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 2003) which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76)

4 Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in

Section 236(B) of the NIRC