BIR Ruling No. 85-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

SH30-017-2020

CERTIFICATE OF TAXEXEMPTION

issued to

NEHEMIAH SCHOOL OF OPPORTUNITIES,INC.

Fatima Hills, Quijada St., Guadalupe Cebu City 6000

TIN: SEC Company Reg. No.

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

and has proven by actual'operatfon 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:

1 Tuition fees and Other school fees;

2. Donations; and

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

located within its premises, owned and operated by NEHEMIAH SCHOOL OF

OPPORTUNITIES, INC., to be actually, 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 JAN 2 4 2Q2Q

eeeam

CAESAR R.DULAY

Commissioner of Internal Revenue

K-1-JAC 032347

Page 2 of 3 Nehemiah School of Opportunities, Inc. CTE No. SH30-017-2020 Date issued_ JAN 2 4 2020

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.NEHEMIAH SCHOOL OF OPPORTUNITIES,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:

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

C NEHEMIAH SCHOOL OF OPPORTUNITIES, 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 15%' 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 statement together with the following: 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

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: (a)Certification from their depository banks as to the amount of interest income

(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

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section operation of cafeterias/canteens, dormitories and bookstores located within the premises of NEHEMIAH SCHOOL OF OPPORTUNITIES,INC. are exempt from taxation provided they 109(1)(H) of the National Internal Revenue Code of 1997,as amended,NEHEMIAH SCHOOL OF OPPORTUNITIES, INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT. Moreover, revenues derived from assets used in the are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX.

NEHEMIAH SCHOOL OF OPPORTUNITIES.INC.is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certifieate of Tax

Republic Act No.10963 increased the tax rate from 7.5% to 15% effective January 1.2018 A

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

Nehemiah School of Opportunities, Inc. Page 3 of 3 CTE No.SH30-017-2020 Date issued_JAN 2 4_2020

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under 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 NEHEMIAH SCHOOL OF OPPORTUNITIES,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% V AT, 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.

NEHEMIAH SCHOOL OF OPPORTUNITIES,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 NEHEMIAH SCHOOL OF OPPORTUNITIES, 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 P500.00 as prescribed in Section 236 (B)

of the National Internal Revenue Code of 1997, as amended.

3 Republic Act No. 10963 increased the VAT threshold from P1,919.50000 to P3.000000 ffective January 1. 2018.