BIR Ruling No. 562-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

t: 562-2017

CERTIFICATE OF TAX EXEMPTION

issued to

MANUEL S. ENVERGA UNIVERSITY FOUNDATION, INC University Site, Ibabang Dupay. Lucena City SEC Company Reg. No. TIN

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 entity is a non-stock, non-profit corporation and has

2i 1 be actually, directly and exclusively used for educational purposes. Tuition fees, registration and other fees; Income derived from the operation of cafeterias/canteens and bookstores located within its premises, owned and operated by MANUEL S. ENVERGA UNIVERSITY FOUNDATION, INC. to Donations; and

nothing follows

integral part hereof. It is liable. however, to ali other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject to the provisions of applicabie 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 character, purposc or method of operation of the corporation which are inconsistent with the conditions herein set forth. It shali likewise he revoked if there are material changes in the basis for its income tax exemption. This certification shall be valid from the datc of issuance until revoked by this Office

that the facts arc different. then this Certificate shall be considered null 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 DEC 0 p 2017

1ou3on

K-1-RFR Commissioner of Internal Revenue CAESAR R. DULAY 011508

Manuel S. Enverga University Foundation, Inc. Page 2 of 4 Datc Issued: _1:-6-2017 CTE No. 562-2017

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

TAX EXEMPTION

1) INCOME TAX

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

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

the following: MANUEL S. ENVERGA UNIVERSITY FOUNDATION,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 Revenuc 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 statenent togcther with 1997, as amended. subject to compliance with the conditions that as a tax-exempt

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 cxpanded 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 15th day of the fourth month following the end of its taxable year (Sec) 4, Finance Department Order No. 137-87)'.

2} VALUE-ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section non-stock. non-profit educational institution are exempt from VAf. ENVERGA UNIVERSITY FOUNDATION, INC.'s gross receipts from operations as a 109(1)(H) of the National internal Revenue Code of 1997, as amended. MANUEL S.

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

Manuel S. Enverga University Foundation, Inc. Page 3 of 4 Date Issued: 12-6--20 17 CTE No. -562-2017

LIABHLITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

MANUEL S.ENVERGA UNIVERSITY 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 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 (VAT)

If MANUEL S. ENVERGA UNIVERSITY FOUNDATION, INC. is engaged in the sale

thereto, in general, it shall be liable for VAT on the revenues derived therefrom. of goods or services in the course of a business pursuit, including transactions incidental

Notwithstanding that it is a non-stock. non-profit corporation, its purchase of goods or amended. 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

3) WITHHOLDING TAX

withhoiding agent for the government if it acts as an employer and its employees receive or corporations subject to the withholding tax pursuant to Section 57 of the National MANUEL S. ENVERGA UNIVERSITY FOUNDATION, INC. shall be constituted as compensation income subject to the withholding tax under Section 79 (A), Chapter XIII, Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuals Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. Title HI of the National Internal Revenue Code of 1997, as amended, as implemented by

TAXPAYER DUTIES & RESPONSIBILITIES

MANUEL S.ENVERGA UNIVERSITY FOUNDATION, INC. is required to file on or showing that there has not been any change in its By-laws. Articles of Incorporation. this Certificate of Tax Exemption shall be attached to the aforementioned Annual 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 prcceding period and a certificate Information Return. manner of operation and activities as well as sources and disposition of income. Copy of

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, and its tax liabilities, if any. accounts and other pertinent records of tax-exempt organization or grantees of tax compliance with the conditions under which it has been granted tax exemptions or tax incentives shall be subject to examination by the BIR for purposes of ascertaining D

Manuel S. Enverga University Foundation, Inc. Page 4 of 4 Date Issued: 126-2017 CTE NO. 62

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

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.