BIR Ruling No. 582-2019

REPUBLIC OI THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

0582-Z015

CERTIFICATE OF TAX EXEMPTION issued to

ICTSI Administration Bldg.. MICT Access Road. Port of Manila Brgy. 20. Zone 02. District 1, Tondo. Manila 1012 SEC Company Reg. No. ICTSI FOUNDATION, INC. TIN:

and has proven by actual operation thai is primary purpose falls under Section 30 (E) 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 abo ve-viai:uorporation is a non-stock. non-profit corporation

I. Donations.

nothing follow

subject to the provisions of applicable BIR rules and regulations and the tax exemptions. integral part hereof. It is liabie. however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an

earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR, or the terms and conditions herein set forth. This certification shall be valid for three (3) years from the date of issuance unless

period. provided under Revenue Memorandum Order (RMO) No. 20-20i3. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year This Certificate may be renewed upon filing of a subsequent application for revalidation

that the facts are 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 OCT 0 9 2019

1asan1

CAESAR R. DULAY Commissioner of Internal Revenue

K-I-MdT 029 4 38

Page 2 of 3 ICTSI FOUNDATION, INC. Date issued OCT 82 I0 92U1S -201s

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. ICTSI FOUNDATION INC. is only exempt from the payment of :under Revenue Memorandum Order No. 20-2013. association/corporation/ organization must continue to meet the requirenents set forth income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover. to be entitled to' the tax exemptions enumerated herein," the

LIABILITY FOR INTERNAL REVENUE TAXES

INCOME TAX

Revenue Code of 1997. as amended on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. subject to the corresponding internal revenue taxes imposed under the National Internal ICTSI 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

to Sec. 57(A) both of the National Internal Revenue Code of 1997, as amended. Likewise. interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements. and rovalties derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided. however, that interest income derived by it from a depository bank under the expanded foreign currency deposit system shall be subject to fifteen percent (15%)' final withholding income tax pursuaint to Section 27(D)(1) in relation

2) VALUE ADDED TAX/PERCENTAGE.TAX

therefrom shall be subject to the 12% VAT. in case the gross receipts from such sales exceed Three Million Pesos (P3.000,000.00)2, or to the 3% percentage tax. if gross receipts of a business pursuit, including transactions incidental thereto, its revenues derived If ICTSI FOUNDATION, INC. is engaged in the sale of goods or services in the course do not exceed P3.000,000.00.

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

3) WITHHOLDING TAX

Revenuc Regulations No. 2-98. as amended. 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. as implemented by ICTSI FOUNDATION, INC. shal} be constituted as withhoiding 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 NIRC. as payments to individuals or corporations subject to the withholding tax pursuant to Sectior

-Republic Act No. 10963 increased the \ 41 threshold from P1.919.500.00 to P3.000.000.00 effective January 1. 2018 Republic Act No. 10963 increased the ta\ rate from 7.5%a lo 15%o eftective Januars l.2018.

ICTS: FOUNDATION, INC Page 3 of 3 Date issued_ OCTg 92019 0 582 -20 1

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) ICTSI FOUNDATION, INC. is required to file on or before the 15th day of the fourth ' attached to the aforementioned Annual Information Return. month following the end of the accounting period a Profit and Loss Statement and Balance as sources and disposition of income. Copy 'of this Certificate of Tax Exemption shall be change in its By-laws. Articles of Incorporation, marmer of operation and activities as weil 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

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 incentives. and its tax liabilities. if any. accounts and other pertinent records of tax-exempt organization or grantees of tax

3) Further. it is also recuireu u..r Section 6(C) in relation to Section 237 of the National

Internai Revenue Code of' 199':. 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.