BIR Ruling No. 383-2021

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No. SH3t-' 3 83 2 0 21

CERTFICATE OF TAX EXEMPTION

issued to

SAINT MARY'S ANGELS COLLEGE OF PAMPANGA

San Pedro, Sta. Ana. Pamnanga 2022

TIN: SEC Company Reg. No.

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

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

INCOME TAX only on the following revenues or receipts:

2 1 Tuition fees and Other school fees; and Income derived from the operatioi of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by SAINT MARY'S ANGELS

COLLEGE OF PAMPANGA, INC., to be actualiy, directly and exclusively used for educational purposes.

lothing follows

subject to the provisions of applicabie 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 OCT 11-2E1

aegaMv

Commissioner of Internal Revenue CAESAR R. DULAY

K-1-JAC 046154

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

TAX EXEMPTION 1) INCOME TAX. SAINT MARY'S ANGELS COLLEGE OF PAMPANGA, 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:

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

SAINT MARY'S ANGELS COLLEGE OF PAMPANGA. 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 the conditions that as a tax-exempt educational institution it shail on an annual basis submit to the Revenue District Office concerned an annual information return and duly audited financial statement together with the following:

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

- : system imposed by Section 27 (D) (1) of the National Internal Revenue Code earned from passive investment not subject to the 20% final withholding tax and 15% tax on interest income under the expanded foreign currency deposit

of 1997, 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 taxabie year (Sec. 4, Finance Department Order No. {37-87 2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the National Internal Revenue Code of 1997, as amended, SAINT MARY'S ANGELS COLLEGE OF PAMPANGA. INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt trom VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of SAINT MARY'S ANGELS COLLEGE OF PAMPANGA, INC., are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX.

SAINT MARY'S ANGELS COLLEGE OF PAMPANGA,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 internai revenue taxes imposed under the National Internal Revenue Code of 1997, as amended, on its income derived from any of its

1 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective January 1, 2018. 2 Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87. Q

Saint Mary's Angels College of Pampanga, Inc. Page 3 of 3 CTE No.SH303 8 3 - 2 2 Date IssuedOCT1i2U2

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 SAINT MARY'S ANGELS COLLEGE OF PAMfPANGA, INC. is engaged in the saie 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 services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106, 107 and 108 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX.

SAINT_MARY'S ANGELS COLLEGE OF PAMPANGA, 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 XHII, 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) The honoraria/allowances given to members of the Board of Trustees must be reasonable and

subject to liquidation (DOF Opinion No. 005-2019).

2) 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, Articies 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 aforernentioned Annual Information Return.

3) 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 it has been granted tax exemptions or tax inicentives, and its tax liabilities, if any. examination by the BIR for purposes of ascertaining compliance with the conditions under which

4) 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 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 No. [RMC] No. 76-2003).

5) 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 P1,919,500.00 to P3,000,000.00 effective January 1, 2018.