BIR Ruling No. 303-2018

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificte of Tax Exemption No. 303-2018

CERTIFICATE OF TAX EXEMPTION

issued to

URSULINE SISTERSOF THE AGONIZING HEART OF JESUS

SEC Company Reg. No. Maitim East, Amadeo, Cavite TIN: (USAHJ, INC.

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 exempt from INCOME TAX only

on the following revenues or receipts:

1. Donation from different sponsors, gifts from individuals or group of people,

and from the General and Provincial Superior of the Congregation.

nothing foliows--

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 uniess 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 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 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 MAR 0 5 2018

CAESAR R. DULA)

K-I/spf Commissioner of Internal Revenue 013960

Ursuline Sisters of the Agonizing Heart of Jesus (USAHJ), Inc Page 2'of 3 Date issued_3-5:2018 CTE No. 303-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1. INCOME TAX. URSULINE SISTERS OF THE AGONIZING HEART OF JESUS

(USAHJ). INC. is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax

meet the requirements set forth under Revenue Memorandum Order No. 20-2013. exemptions enumerated herein, the association/corporation/ organization must continue to

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

real or personal, or any activity conducted for profit regardless of the disposition thereof. subject to income tax on all its income/receipts/revenues not expressly exempted and stated revenue taxes imposed under the NIRC on its income derived from any of its properties URSULINE SISTERS.OF THE AGONIZING HEART OF JESUS (USAHJ),INC. is in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal which income should be returned for taxation.

Likewise. interest income from currency. bank deposits and yield or any other monetary 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 (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 fifteen percent (15%)' final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the NIRC.

2) VALUE ADDED TAX/PERCENTAGE TAX

If URSULINE SISTERS OF THE AGONIZING HEART OF JESUS (USAHJ), 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% (P3,000,000.00)2, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. VAT, in case the gross receipts from such sales exceed Three Million Pesos

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

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 NIRC, as implemented by Revenue Regulations No. 2-98 URSULINE SISTERS OF THE AGONIZING HEART OF JESUS.(USAHJ,INC

as amended, or if it makes income payments to individuals or corporations subject to the Regulations No. 2-98, as amended. withholding tax pursuant to Section 57 of the NIRC, as implemented by Revenue

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

Ursuline Sisters of the Agonizing Heart of Jesus (USAHJ), Inc. Pag 3 of 3 CTE No.-303-3018 Date issued3-5-2038

TAXPAYER'S DUTIES & RESPONSIBHLITIES

:1) URSULINE SISTERS.OF THE AGONIZING HEART OF JESUS (USAHD. INC. is required to file on or before the 15th day of the fourth month foliowing the end of the aforementioned Annual Information Return. 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 disposition of income. Copy of this Certificate of Tax Exemption shall be attached to 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

2) Under Section 235 of the NIRC, any provision of existing general and special iaw to the organization or grantees of tax incentives shall be subject to examination by the BIR for contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt purposes of ascertaining compliance 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 NIRC to issue which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76- 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 2003

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.