BIR Ruling No. 677-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPART'MENT OF FINANCE Queron City

Certificate of Tax Exemption No.

677-2 17 CERTIFICATE OF TAX EXEMPTION issued to

SOUND OF THE LIVING STREAMS FELLOWSHIP INC. Purok 3 Santol St., Tughok, Davao City 8000 SEC Company Reg. No. TIN:

and has proven hy actual operation that its primary purpose fals under Section 30 (E) of the National internal Revenue Code of 1997, as amended. It is exempt from INCOMF TAX only on the following revenucs or receipts: This certifies that the above-named corporation is a non-stock. non-profit corporation

1. Tithes, Offerings and Donations.

nothing follows subject to the provisions of applicable BIR rules and regulations and the tax exemptions. liabititics and responsibilities stated in the Terms and Conditions hereto attached and made an integral part hereof. It is liabie. 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 he valid for three (3) years from thc date of issuance unless

provided under Revenue Memorandum Order (RM0) 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 subscquent application for revalidation

documents as represented and submitted. However. if upon investigation. the BIR ascertains that the facts are ditferent. 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. 0EC 2 9 2017

Commissioner of Internal Revenuc CAESAR R. DULAY

-K-1-JAC K1-FR-17-0173 Cu C lu

Deputy Commissioner CELIA C.KING

Sound of the Living Streams Fellowship, Ine. Page 2 of 3 CTE No. Date issued 577-20-7 12-20

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. SOUND OF.THE LIVING STREAMS FELLOWSHIP, INC. is only exempt from the payment of income tax on revenues and receipts enumerated on the set forth under Revenue Memorandum Order No. 20-2013. Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein. the association/corporation/ organization must continue to meet the requirements

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

its income/receipts/revenues not expressly exempted and stated in the Certificate of I'ax Exemption. Moreover. it is subiect 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 incomc should be SOUND OF THE LIVING STRE4MS FELLOWSHIP INC. is subject to incomc taX on all returned for taxation.

seven and one-half percent (7-1/2%) fir:al withhoiding income tax pursuant to Section 27(D!) in relation to Sec. 57(A) both cf the NIRC Likewise. interest income from curenct: bank deposits and yield or any other monetary benetits from deposit substitute instruments and from trust funds and similar arrangements. and reyalties derived froni sources within the Philippines are subject to the twenty percent (20%) tinal withholding tax: Provided. however. that interest income derived by it from a depository bank under the expantd foreign currency deposit system shall he subject to

2) VALUE ADDED TAX

the:eto. in general, it shall be liable for V A'f on the revenues derived therefrom. If SOUND OF THE LIVING STREAMS FELLOWSHIP,INC.is engaged in the sale of goods or services in the course of a husiness pursuit. including transactions incidental

Notwithstanding that it is a non-stock. non-protit corporation. its purchasc 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

compensation income subject to the withholding tax under Section 79 (A). (hapter XIl1. it makes income payments to individuals or corporations subject to the withholding tax pursuant to Scction 57 of the NIRC. as imnlemerted by Revenue Regulations No. 2-98. as SOUND OF THE LIVING STREAMS FELLOWSHIP INC. shall be constituted as withholding agent for the goveriment if it acts as an empioyer and its employees reccive Title I' of the NIRC, as implemented by Revenue Regulations No. 2-98. as amended. or if amended.

M

Sound of the Living Streams Fellowship, Ine. Page 3 of 3 CTE NO Date issted 12-29-2017 677-2017

TAXPAYER'S DUTIES & RESPONSIBHLITIES

1} SOUND OF THE LIVING STREAMS FELLOWSHIP INC. is required to filc on or heforc its gross income and expenses incurred during the preceding period and a certificate the 15th day of the fourth month following the end of the accounting period a Profit and Loss Statement and Balance Sheet with the Annual Infornation Return under oath. stating showing that there has not been any change in its By-laws. Articles of Incorporation manner of operation and activities as wetl as sources and disposition of income. Copy of this Certificate of Tax Exeniption shall be attached to the aforementioned Annual Information Return.

2) Uncer Section 235 of the VIRC. any prcvisio 1 ot existing general and special law to the contrary notwithstanding. the books of accounts and other pertinent records of tax-exempt

orgariation cr grantees of tax ircentives :hall be subiect to examination by the BIR for

tax exemptions or tax incentives. and its tax liabilities. if any. purposes ot ascertaining compliance with the conditions under which it has heen granted

3) Further. it is also required under Section 6() in relat:on to Section 237 of the NIRC to

merchandise or for services rendered which are not directly related to the activities for issuc duly registered rcccipts or sales or comrnercial invoices for cach sale or transfer of which the Association is registered. (Revenue Memerandum Circular No. [RMC] No. 76- 2003)

4 Finally. it is subject to the payment of registration fee of PhP 500.00 as prescribed in Sectjen 236(B) of the NIRC.