BIR Ruling No. 361-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE

1 BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No CH30-0361-2020

CERTIFICATE OF TAXEXEMPTION

issued to

CENTRAL BUKIDNON INSTITUTE,INC

Bagonta-as, Valencia, Bukidnon 8709 SEC Company Reg. No. TIN:

This certifies that the above-named corporation is a non-stock, non-profit corporation and

30(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME has proven by actual operation that its primary purpose is one of those enumerated under Section

TAX only on the following revenues or receipts:

1. Tuition, Registration and Miscellaneous Fees; and

2 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

located within its premises, owned and operated by CENTRAL BUKIDNON

INSTITUTE, INC., to be actualiy, directly and exclusively used for educational

purposes.

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.

This certification shall be valid from the date of issuance until revoked by this Office for violation of any provisions of applicable rules and regulations of the BIR, or the terms and 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 basis for its

income tax exemption.

This Certificate of Tax Exemption is being issued on the basis of the facts and documents as represented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then this Certificate shall be considered null and void.

Issued this day of JUN 2 5 2029

Maesam

CAESAR R.DULAY

K-1/spf1 90037 Commissioner of Internal Revenue 035422 Q

Central Bukidnon Institute, Inc. Page 2 of,3 Date issued CTE No. 3H3R72

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution

D) INCOME TAX.CENTRAL BUKIDNON INSTITUTE,INC. is exempt from the payment TAX EXEMPTION

set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: 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

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

CENTRAL BUKIDNON INSTITUTE,INC.'s interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in

of the National Internal Revenue Code of 1997, as amended, subject to compliance with the pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 15%' tax under the expanded foreign currency deposit system imposed under Section 27(D)(1)

conditions that as a tax-exempt institution it shall on an annual basis submit to the Revenue

together with the following: District Office concerned an annual information return and duly audited financial statement

(a Certification from their depository bank as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and

15% tax on interest income under the expanded foreign currency deposit system imposed by Section 27(D)(1) of the National Internal Revenue Code of 1997, as

amended.

b Certification of actual utilization of the said income; and

(c Board Resolution by the school administration on proposed projects (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. 4, Finance Department Order No. 137-

872.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.Pursuant to Section

109(1)(H) of the National Internal Revenue Code of 1997, as amended, CENTRAL

BUKIDNON INSTITUTE, INC.'s gross receipts from operations as a non-stock, non-profit

educational institution are exempt from VAT. Moreover, revenues derived from assets used in

the operation of cafeterias/canteens, dormitories and bookstores located within the premises of

CENTRAL BUKIDNON INSTITUTE, INC. are exempt from taxation provided they are

owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

CENTRAL BUKIDNON INSTITUTE,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

0 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan.1,2018

Central Buk idnon Institute, Inc. Page 3 of 3 CTE NO. Date issued SH70-0351-2020 JUN 2 5 2020

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, which income should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If CENTRAL BUKIDNON INSTITUTE,INC.is engaged in the sale of 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 receipts from such sales exceed]

Three Million Pesos (P3,000,000.00)3, 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 or

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

CENTRAL BUKIDNON INSTITUTE,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 implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) CENTRAL BUKIDNON INSTITUTE,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 incurred during the preceding period and a certificate showing that there has 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 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.

Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan. 1.