BIR Ruling No. 451-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

451-2018

CERTIFICATE OF TAX EXEMPTION issued to

Gumamela St., Banezville II Fatima Village, Brgy. 77, Tacloban City, Leyte TACLOBAN GRACE BAPTIST CHURCH,INC. TIN:

SEC Reg. No.

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

1.Contributions, Donations and Gifts.

othing follow

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.

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 certification shall be valid for three (3) years from the date of issuance unless

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 may be renewed upon filing of a subsequent application for revalidation

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 MAR 1 2 2018

1880

K-1-spf Commissioner of Internal Revenue CAESAR R. DULAY W 014292

Page 2 of 3 TACLOBAN GRACE BAPTIST CHURCH, INC. CTE No.451-2018 Date issued_3-12-2018

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1INCOME TAX

TACLOBAN GRACE BAPTIST CHURCH,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 exemptions enumerated herein. the association/

corporation/ organization must continue to meet the requirements set forth under Revenue

Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX TACLOBAN GRACE BAPTIST CHURCH,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 NIRC on its income derived from any of its properties, real or personal, or any

activity conducted for profit regardless of the disposition thereof, 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 subiject to

fifteen percent(15%) final withholding income tax pursuant to Section27(D)(1) in relation

to Sec.57(A) both of the NIRC.

2) VALUE ADDED TAX/PERCENTAGE TAX

If TACLOBAN GRACE BAPTIST CHURCH, INC, is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto. its

from such sales exceed Three Million Pesos (P3,000,000.002,or to the 3% percentage tax. revenues derived therefrom shall be subject to the 12% VAT. in case the gross receipts

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 National Internal Revenue Code of 1997, as

amended.

3) WITHHOLDING TAX TACLOBAN GRACE BAPTIST CHURCH, 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

NIRC. 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 NIRC.as implemented by Revenue Regulations No.2-98, as amended.

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

2018

TACLOBAN GRACE BAPTIST CHURCH, INC. Page 3 of 3 CTE5018 Date issued 3122018

TAXPAYER'S DUTIES & RESPONSIBILITIES

TACLOBAN GRACE BAPTIST CHURCH,INC.is required to file on or before the Statement and Balance Sheet with the Annual Information Return under oath, stating its 15th day of the fourth month following the end of the accounting period a Profit and Loss

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 that there has not been any change in its By-laws, Articles of Incorporation, manner of gross income and expenses incurred during the preceding period and a certificate showing Return.

2) Under Section 235 of the NIRC, 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 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 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). which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76

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.