BIR Ruling No. 749-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

0749-2019

CERTIFICATE OF TAXEXEMPTON

issued to

NYK-TRANSNATIONAL INSTITUTE FOUNDATION, INC.

Knowledge Avenue, Carmeltown, Canlubang, Calamba City 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 This certifies that the above-named corporation is a non-stock, non-profit corporation

INCOME TAX only on the following revenues or receipts:

1. Tuition fees and other school fees; and 2 Income derived from the operation of cafeterias/canteens, d r nitories and bookstores iocated within its premises, owned and operated by NYK-TRANSNATIONAL INSTITUTE FOUNDATION, 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 DEC 0 9 2019

4fa

CAESAR R.DULAY

KI-JAC Commissioner of nternal Revenue 031144

NYK-Transnational Institute Foundation, Inc. Page 2 of 3 CTE No. Date issued DEC 0 9 2019 0749-2019

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution

TAX EXEMPTION 1 INCOME TAX. NYK-TRANSNATIONAL INSTITUTE FOUNATION,INC.is eXempt from the payment of income tax only on revenues and receipts enumierated on the Certificate as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: of Tax Exemption. It is understood that the school must continue to meet the following requisites E

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

NYK-TRANSNATIONAL INSTITUTE 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 Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax basis submit to the Revenue District Office cor financial statement together with the following: 15%' tax on interest income under the expanded foreign currency deposit system imposed under Tempt educational institution it shall on an annua rned an annual information return and duly audited

(a)Certification from their depository banks as to the amount of interest income 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 earned from passive investment not subject to the 20% final withholding tax

(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 banks or placed in money markets, on or before the 15th day osie fourth month following the end of its taxable. year (Sec. 4; Finance Deparirnent Order No. construction and/or improvement of school buildings and facilities, acquisition 137-87)2

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section operated by it as ancillary activities. dormitories and bookstores located within the premises of NYK-TRANSNATIONAI INSTITUTE FOUNDATION, INC. are exempt from taxation provided they are owned and 109(1)(H) of the NIRC, NYK-TRANSNATIONAL INSTITUTE FOUNDATION,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 operation of cafeterias/canteens,

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX.

its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax NYK-TRANSNATIONAL INSTITUTE FOUNDATION,INC. is subject to income tax on all

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective January 1. 2018.

Page 3 of 3 NYK-Transnational Institute Foundation, Inc. Date issued DEC 0_9 2019 CTE No.0 7 4 9 - 2 0 19

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 Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If NYK-TRANSNATIONAL INSTITUTE FOUNDATION, 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% VAT, 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.

and as implemented by Revenue Regulations No. 2-98, as amended. NYK-TRANSNATIONAL_INSTITUTE FOUNDATION, INC."shall be constituted as compensation income subject to the withholding'tax under Section 79 A, Chapter XIII, Title II of withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, withholding agent for the government if it acts as an employer ard its employees receive 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

TAXPAYER DUTIES & RESPONSIBILITIES

1) NYK-TRANSNATIONAL INSTITUTE FOUNDATION,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 income and expenses incurred during the preceding period and a certificate showing that there has well as sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Inforimation Return: not been any change in its By-laws, Articles of Incorporation, manner of operation and activities as Statement and Balance Sheet with the Annual Information Return under oath, stating its gross

2) Under Section 235 of the National Internal Revenue Code of-1997, as amended, any provision of 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 examination by the BIR for purposes of ascertaining compliarice with the conditions under which existing general and special law to the contrary notwithstanding, the books of accounts and other

3) Further, it is also required under Section 6(C) in relation to Section 237'of the National Internal related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003). 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 ofP500,00 as pra.ribed in Section 236 (B) of the National Internal Revenue Code of 1997, as amended.-

3 Republic Act No. 10963 increased the VAT threshold from P1.919.500.00 to P3.000.000.00 effective January 1, 2018