BIR Ruling No. 693-2019

I..'. F..! T THFHIIINE

TAENT FINANOE BUIEAU OF INTERNAL REVENUE

Quezon Ciry

Certificate of Tax Exemption No.

693-261E

CERTIFCATE OF TAXEXEMPTION

issued to

SISTERSOF MARY TECHNICAL EDUCATION INSTITUTE CAVITE. INCI

Brgy. Adias Silang. Cavite 4118

TIN: SEC Company Reg. No.

This certifies that the above-named corporation is a non-stock. non-profit corporation and has proven hy actual operation that its primars' 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:

I. Grants and Donations: 2 3 Tuition fees and Other school fees: and Income derived from the operation of cafeterias/canteens-dormiories and bookstores

iocated within its premises. owned and operated by SISTERS_OF MARY TECHNICAL.EDUCATION INSTITUTE CAVITE.INC.. to be actually, directiy and exciusively used for educational purposes.

nothing foliows

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 issuanee 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 faets and documents as represented and submitted. However. if upon investigation. the BIR ascertains that the facts are different. then this Cerrificate shall be considered null and void

Issued this day of NOY 1 2 2019

AnA

CAESAR R. DULAY Commissioner of Internal Revenue K--Je 030323

Sisier: o Mar Techniea Eaucaior hestiun Carhe. ine. TTI NO Pa9c 2 o{ 3 Date issued .!

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock. Non-F'rofit Educational Institution nder Section 30(H : of the National Internal Revenue Code of 1997. as Amended

TAX EXEMPTION

L: INCOME TAX. SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE.

INC is exemp: 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 foliowing requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016. to wit:

Hi. lts revenues are actually . directhy and exciusivety used for educational purposes. I: is a non-stock. non-profit edueational institution: and

SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVTE. INC.'s interest income from currency bank deposits and yieid from deposit substitute instruments used actually - direethy and exclusiveiy in pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 15%i tax on interest income under the expanded foreign currency deposit S'stem 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 shall on an annua! basis submit to the Revenue District Office concerned an annual information return and duiy audited financial statement together with the following:

a Certifieatior: from thei: depository banks as to the amount of interest ineome earned from passive investment not subject to the 20% finat withholding tax and 15% tax on interest income under tne expanded foreign currency deposit system imposed by Seetion 27 (D: ( 1, of the National Internal Revenue Code of 1997. as amended:

(b Certification of actuat utilization of the said income: and

(c Board Resolution by the sehool administration on proposed projects (i.e. construction and/or improvement of school buildings and facilities. acquisition of equipmeni. 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. 137-872

2, YALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109( 1)(H; of the National Internal Revenue Code of 1997. as amended. SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE.INC.'s gross receipts fron operations as a non-stock. non-profit educational institution is exempt from VAT. Moreover, revenues derived froin assets used in the operation of cafeterias/eanteens. dormitories and bookstores iocated within the premises of SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE INC. are exempt from taxation provided they are owned and operated hy it as ancillary activities.

LIABILITY:FOR INTERNAL REVENUE TAXES

1)INCOME TAX

SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE. INC. is subjeCt tc income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate

- Repunhe As: Mo. 10963 inereased ue ta. rate from 7.5"a to 15. efiective January I, 218. A

Sisrers o"vier: Teennica. Educarior Instinue Cevite. Ine. Tuae t at's CTENO..:--E Date issued_N:

of Tax Exemptior.. Moreov er. i: i, subject t tne corresponding internal revenue taxes. imposed under Nauionat internat Kevenue &ode ot' roc-. as amended. as amended. or its income derived from any of its properties. real or personal. or any activiry condueted for profit. which income should be returned for taxation. uniess said revenues are aetually. directiy and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

I SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE. 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% V AT. in case the gross receipts fron: such: saies exceed Three Million Pesos (#3.000.000.00:. or to the 3% pereentage tax. if gross receipts do not exceed f3.000.000.00.

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 Seetions 106 and 107 of the National Internal Revenue Code of 1997. as amended.

3} WITHHOLDING TAX

SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVITE. INC. shall be constituted as withholding agent for the government if it acts as an employer and its empioyees receive compensation income subject to the withhoiding tax under Section 79 (A). Chapter XII. Title II of the National Internal Revenue Code of 1997. as amended. as impiemented 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 Seetion 57 of the National Internal Revenue Code of 190-. as amended. and as implemented by Revenue Reguiations No. 2-9&. as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1 , SISTERS OF MARY TECHNICAL EDUCATION INSTITUTE CAVTTE INC. is required tO

file on or before the 15th day' of the fourth month following the end of the accounting period a Profi 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 weil 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 iav 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 compliance with the conditions under which it has been granted tax exemptions or tax incentives. and its tax liabilities. if any.

3 ; Further. i 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 inv oices for eaeh saie or transfer of merchandise or for services rendered which are not directh related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003.

4)Finalty . it is subject to the payment of registration fee of #500.00 as prescribed in Seetion 236 (B)

of the National Internal Revenue Code of 1997. as amended