BIR Ruling No. 734-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

0734-2019

CERTIFICATE OF TAX EXEMPTION

issued to

MANAOAG CHRISTIAN CHILDREN'S HOME INC

Tebuel, Manaoag, Pangasinan 2430]

SEC Company Reg. No. TIN:

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

and has proven by actual operation that its primary purpose falls under Section 30 (E) of the

National Internal Revenue Code of 1997, as amended. It is exermpt from INCOME TAX only

on the following revenues.or receipts:

1. Contributions and Donations.

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 for three (3) years from the date of issuance unless

earlier revoked by this Office for violation of any provi sions of applicable rules and regulations

of BIR, or the terms and conditions herein set forth:

This Certificate may be renewed upon filing of a subsequent application for revalidation

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 of Tax Exernption 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

Aauce

CAESARR.DULAY Commissioner of Internal Revenue

K-I 031107

Manaoag Christian Children's Home Inc. Page 2 of 3 Date ssuedDEC9 2019 CTE No. 0734-2019

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1 INCOME TAX. MANAOAG.CHRISTIAN CHILDREN'S HOME INC.is only exernpt from the payment of income tax on revenues and receipts enumerated on the herein, the association/corporation/organization must continue to meet the requirements set Certificate of Tax Exernption. Moreover, to be entitled to the tax exemptions enumerated forth under Revenue Memorandum Order No. 20-2013.

LIABJLITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

MANAOAG CHRISTIAN CHILDREN'S HOME 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 internal revenue 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 profit regardless of the disposition thereof, which incorne should be returned for tax ation.

to Sec. 57(A) both of the National Internal Revenue Code of 1997, as arnended. 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 fifteen percent (15%) final withholding income tax pursuant to Section 27(D)(1) in relation Likewise, interest income from currency bank deposits and yield or any other monetary depository bank under the expanded foreign currency deposit system shall be subject to (20%) final withholding tax: Provided, however, that interest income derived by it from a

2) VALUE ADDED TAX/PERCENTAGE TAX

thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross If MANAOAG CHRISTIAN CHILDREN'S HOME INC. is engaged in the sale of receipts from such sales exceed Three Million Pesos (P3,000,000.00.2 or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. goods or services in the course of a business pursuit., including transactions incidental

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or 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%

amended.

3) WITHHOLDING TAX

MANAOAG_CHRISTIAN CHILDREN'S_HOMEINC. shall be constituted as cornpensation income subject to the withholding tax under Section 79 (A),Chapter XIII it rnakes income payments to individuals or corporations subject to the withholding tax withholding agent for the government if it acts as an employer and its employees receive pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No.2-98,as amended. Title II of the NIRC,as implemenred by Revenue Regulations No.2-93.as amended,or if

Republic Act No.10963 increased the tax rate from 75% to 15%effective January 1,2018 RA No.10963 increased the VAT threshold from P1,919,500 to P3,000,000 effective January 1,2018

Manaoag Christian Children's Home Inc. Page 3 of 3 Date issued_EL 9 2019 CTE No. 0734-2013

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) MANAOAG CHRISTIAN CHILDREN'S HOME INC.is required to file on or before the 15th day of the fourth month following the end of the acccunting 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

conpliance 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

Memoratndum Circular No. [RMC] No. 76-2003).

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.