BIR Ruling No. 276-2018

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

Certificate of Tax Exemption No. 27620 18

CERTIFICATE OF TAX EXEMPTION

issued to

Beige St., Springville I - North, Camella Homes, Molino, Bacoor, Cavite 4102 MOTHER THERESA SCHOOL,INC 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

Income derived from the operation of cafeterias/canteens, dormitories. Tuition Fees & Other School Related Fees; and used for educational purposes. and bookstores located within its premises, owned, and operated by Mother Theresa School, Inc. to be actually, directly and exclusively

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

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and character, purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption. conditions herein set forth. It shall likewise be revoked if there are material changes in the This certification shall be valid from the date of issuance until revoked by this Office

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. This Certificate of Tax Exemption is being issued on the basis of the facts and Issued this day o FEB 2 7 2018

K-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 013682

MOTHER THERESA SCHOOL, INC. Date issued 2---27--2018 CTE No. 276...2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

D INCOME TAX

MOTHER THERESA SCHOOL, INC. is exempt from the payment of income tax only on the school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that

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

purposes.

MOTHER THERESA 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 1997, as amended, subject to compliance with the conditions Office concerned an annual information return and duly audited financial statement together with the following: that as a tax-exempt educational institution it shall on an annual basis submit to the Revenue District

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 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 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., of equipment, books and the like) to be funded out of the money deposited in No. 137-87). construction and/or improvement of school buildings and facilities, acquisition 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

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

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

LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

MOTHER THERESASCHOOL, INC.is subject to incometax 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 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

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

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MOTHER THERESA SCHOOL, INC. Date issued_2-272018 CTE No.276~208

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

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

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

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3)WITHHOLDING TAX

MOTHER THERESA SCHOOL, INC. shall be constituted as withholding agent for the of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes Regulations No. 2-98, as amended. 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 Il of the National Internal Revenue Code 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

TAXPAYER DUTIES & RESPONSIBILITIES

1)MOTHER THERESA SCHOOL, INC. is required to file on or before the 15th day of the fourth 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 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- 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 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. pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to

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

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.

K-1-LMAT

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