BIR Ruling No. 448-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. SH30-0448-2020

CERTIFICATE OF TAX EXEMPTION issued to

BLESSED GENERATION DREAM ACADEMY, INC. Dream Center, San Miguel Calasiao, Pangasinan 2418 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 INCOME TAX only on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1.Tuition Fees, Other school related fees; and Income derived from operation of cafeterias/canteens, dormitories and GENERATION DREAM ACADEMY, INC. to be actually, directly and exclusively used for educational purposes. bookstores located within its premises, owned and operated by BLESSED

nothing follows.

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

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 certification shall be valid from the date of issuance until revoked by this Office

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 of AUG 1 7 2020

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K-1-JAC Commissioner of Internal Revenue CAESAR R. DULA 036370 9

Page 2 of 3 Blessed Generation Dream Academy CTE No.SH30-0448-2020 Date issuedAU 1 7 2020

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

TAX EXEMPTION

1) INCOME TAX.BLESSED GENERATION DREAM ACADEMY,INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: Exemption. It is understood that the school must continue to meet the following requisites as set

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

statement together with the following: pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 15%1 deposits and yield from deposit substitute instruments used actually, directly and exclusively in 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 shall on an annual basis submit to the Revenue District Office concerned an annual information return and duly audited financial BLESSED GENERATION DREAM ACADEMY, INC.'s interest income from currency bank tax on interest income under the expanded foreign currency deposit system imposed under Section

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

(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 of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)2. construction and/or improvement of school buildings and facilities, acquisition

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section bookstores located within the premises of BLESSED GENERATION DREAM ACADEMY 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, dormitories and INC. are exempt from taxation provided they are owned and operated by it as ancillary activities. 109(1)(H) of the NIRC,BLESSED GENERATION DREAM ACADEMY,INC.'s gross receipts

LIABILITY FOR INTERNAL REVENUE TAXES

1)INCOME TAX.

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

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Blessed Generation Dream Academy CTE No.SH30-0448-2020 Page 3 of 3 Date issued AUG 1 7 2020

activity conducted for profit, which income should be returned for taxation, unless said revenues NIRC, as amended, on its income derived from any of its properties, real or personal, or any are actually, directly and exclusively used for educational purposes. BLESSED GENERATION DREAM ACADEMY, 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

2) VALUE ADDED TAX/PERCENTAGE TAX

services in the course of a business pursuit, including transactions incidental thereto, its revenues If BLESSED GENERATION DREAM ACADEMY,INC. is engaged in the sale of goods or 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 NIRC.

3 WITHHOLDING TAX.

amended, or if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as amended. BLESSED GENERATION DREAM ACADEMY,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 XIII, Title II of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as

TAXPAYER DUTIES & RESPONSIBILITIES

1 BLESSED GENERATION DREAM ACADEMY, INC. is required to file on or before the 15th

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. day of the fourth month following the end of the accounting period a Profit and Loss Statement and

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 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 compliance with the conditions under which

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internal No. [RMC] No. 76-2003). 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

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. W

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1, 2018. T