BIR Ruling No. 272-2018

UEPAKIMENI UF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

272-2018

CERTIFICATE OF TAXEXEMPTION

issued to

ST. JOSEPH HOME FOR SPECIAL CHILDREN,INCORPORATED SEC Company Reg. No. Block 3, San Jose, Tarlac City 2300 TIN:

National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only and has proven by actual operation that its primary purpose falls under Section 30 (E) of the on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1 Donations and grants;

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.

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

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period. This Certificate may be renewed upon filing of a subsequent application for revalidation

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 ofEB 27 2018

aMy

K-1 JES Commissioner of Internal Revenue CAESAR R. DULAY 013684

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX

ST. JOSEPH HOME FOR SPECIAL CHILDREN, INCORPORATED is eXempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the association, corporation or organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

ST.JOSEPH HOME FOR SPECIAL CHILDREN,INCORPORATED 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

profit regardless of the disposition thereof, which income should be returned for taxation. 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 Thus, dividend income received by the foundation is subject to taxation.

benefits from deposit substitute instruments and from trust funds and similar arrangements. and royalties derived from sources within the Philippines are subject to the twenty percent Likewise, interest income from currency bank deposits and yield or any other monetary fifteen percent (15%') final withholding income tax pursuant to Section 27(D)(1) in relation (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

to Sec. 57(A) both of the National Internal Revenue Code of 1997, as amended.

2) VALUE ADDED TAX/PERCENTAGE TAX

3% percentage tax, if gross receipts do not exceed P3,000,000.00. If ST.JOSEPH HOME FOR SPECIAL CHILDREN,INCORPORATED 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)2, or to the

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% Value-added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

1 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective January 1, 2018 2 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1, 2018.

3) WITHHOLDING TAX

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 implemented by Revenue Regulations No. 2-98, as amended, or if it makes income ST. JOSEPH HOME FOR SPECIAL CHILDREN, INCORPORATED shall be (A), Chapter XIII, Title II of the National Internal Revenue Code of 1997, as amended, as payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) ST.JOSEPH HOME FOR SPECIAL CHILDREN,INCORPORATED 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

Annual Information Return. income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any accounts and other pertinent records of tax-exempt organization or grantees of tax incentives, and its tax liabilities, if any. compliance with the conditions under which it has been granted tax exemptions or tax 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

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 Memorandum Circular No. [RMC] No. 76-2003). Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or are not directly related to the activities for which the Corporation is registered. (Revenue

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