BIR Ruling No. 511-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No.

511-2018

CERTIFICATE OF TAX EXEMPTION

issued to

Zone 1-013, Door 1. Ramona Village, Dawis, Tabunok City of Talisay, Cebu 6045 CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET) INC. SEC Company Reg. No. TIN:

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 oniy on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

2. Membership fees. 1. Grants and Donations; and

nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. 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

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

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this 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 ofMAR 1 L 2018

10won1

Commissioner of Internal Revenue CAESAR R.DULAY

K-1-JAC 014316

Central Visayas Network of NGOs (CENVISNET) Inc. Page 2 of 3 CTE No.511-2018 Date issued 3-14-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1)INCOME TAX. CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET) 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

personal, or any activity conducted for profit regardless of the disposition thereof. which CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET) 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 income should be returned for taxation.

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. Likewise, interest income from currency bank deposits and yield or any other monetary 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 benefits from deposit substitute instruments and from trust funds and similar arrangements.

2) VALUE ADDED TAX/PERCENTAGE TAX

the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00)2, or to the If CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET) INC. is engaged in incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case 3% percentage tax, if gross receipts do not exceed P3,000,000.00. the sale of goods or services in the course of a business pursuit, including transactions

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

withholding tax pursuant to Section 57 of the NIRC, as implemented by Revenue 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 CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET)_INC. shall be constituted as withholding agent for the government if it acts as an employer and its Regulations No.2-98, as amended.

2Rpubc AcNo.10963 mcreased the VAT threshold frmP1,919,500.00to P3.00.00.00ffctive amary1.2018 1 Republic Act No.10963 increasedthe tax rate fron .5%to 15%effective January 01.2018

Central Visayas Network of NGOs (CENVISNET) Inc. Page 3 of 3 CTE No.512018 Date issued 3-142018

TAXPAYER'S DUTIES& RESPONSIBILITIES

1) CENTRAL VISAYAS NETWORK OF NGOS (CENVISNET) INC. is required to file

on or before 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 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.

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 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 National

Internal Revenuc 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 related to the activities for which the Association is registered. (Revenue

Memorandum Circular No. [RMC] No. 76-2003).

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.