BIR Ruling No. 345-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Tr

Certificate of Tax Exemption No.

345-2017

CERTIFICATE OF TAX EXEMPTION

issued to

GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC

23 Matahimik St., Malaya cor. V. Luna Rd., Diliman, Quezon City

TIN SEC Company Reg. No.

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

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

TAX only on the following revenues or receipts:

2. Cafeterias/canteens and bookstores sales located within its 1. Tuition fees and miscellaneous fees; and premises, owned and operated by GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC.

nothing follows

subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

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

basis for its income tax exemption.

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 ofJUL122017

18

Commissioner of Internal Revenue CAESAR R.DULAY 007666

Gospel Light Christian Academy of Quezon City, Inc. Page 2 of 4 Date Issued7-12-2017 CTE No 3452017

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock, Non-Profit Educational Institution Under Section 30(H) of the NationalInternal Revenue Code of 1997.as amended

TAX EXEMPTION

D) INCOME TAX

GOSPEL LIGHT CHRISTIAN ACADEMY OF OUEZON CITY,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:

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

purposes.

GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,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 Interna Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt 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:

a) Certification from their depository banks as to the amount of interest withholding tax and 7 1/2% tax on interest income under the expanded income earned from passive investment not subject to the 20% final foreign currency deposit system imposed by Section 27 (D) (1) of the National Internal Revenue Code of i997.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 4, Finance Department Order No. 137-87) 15th day of the fourth month following the end of its taxable year (Sec.

2) VALUE-ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section as a non-stock, non-profit educational institution are exempt from VAT 109(1)(H) of the National Internal Revenue Code of 1997,as amended,GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC.'s gross receipts from operations

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

Gospel Light Christian Academy of Quezon City, Inc. Page 3 of 4 CTE No. Date Issued:7-122017 3452017

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC. is subject to

the Certificate of Tax Exemption. Moreover. it is subject to the corresponding internal income tax on all its income/receipts/revenues not expressly exempted and stated in

its income derived from any of its properties, real or personal, or any activity conducted for revenue taxes imposed under the National Internal Revenue Code of 1997,as amended.on profit, which income should be returned for taxation, unless said revenues are actually. directly and exclusively used for educational purposes.

2) VALUE-ADDED TAX (VAT)

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. If GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC. is engaged

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

GOSPEL LIGHT CHRISTIAN ACADEMY OF OUEZON CITY,INC. shall be constituted as withholding agent for the government if it acts as an employer and its payments to individuals or corporations subject to the withholding tax pursuant to Section Revenue Regulations No. 2-98, as amended. 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 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by

TAXPAYER DUTIES & RESPONSIBILITIES

1) GOSPEL LIGHT CHRISTIAN ACADEMY OF QUEZON CITY,INC. is required to oath. stating its gross income and expenses incurred during the preceding period and a 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 Sheetwith the Annual Information Return under 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 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 incentives, and its tax liabilities, if any

Page 4 of 4 Gospel Light Christian Academy of Quezon City,Inc. Date Issued? CTE No.34 O

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National are not directly related to the activities for which the corporation is registered. (Revenue commercial invoices for each sale or transfer of merchandise or for services rendered which Internal Revenue Code of 1997. as amended, to issue duly registered receipts or sales or Memorandum Circular No. [RMC] No. 76-2003)

4)Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.