BIR Ruling No. 324-2017

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 324-2017

CERTIFICATE OF TAXEXEMPTION

issued to

PHILIPPINENATIONALPOLICE FOUNDATION.INC Unit OS-3,2nd Flr., Providence Bldg.. 55 Annapolis St. Greenhills,San Juan City SEC Company Reg. No. TIN

revenues or receipts: primary purpose is one of those enumerated under Section 30 (E) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the following This certifies that the above-named corporation has proven by actual operation that its

1.Donations.

nothing follows. 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.

of BIR, or the terms and conditions herein set forth. earlier revoked by this Office for violation of any provisions of applicable rules and regulations This certification shall be valid for three (3) years from the date of issuance unless

period. Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year provided under Revenue Memorandum 'Order (RMO) No. 20-20i3. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR asceriains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of OUN

aeam

Commissioner of Internal Revenue CAESAR R. DULAY 007454

-K-1-LM.AT

PHILIPPINE NATIONAL POLICE FOUNDATION, INC CTE No. Date issued 24-2017 2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

1 INCOME TAX.

benefit of any member, organizer, officer or any specific person. PHILIPPINE NATIONAL POLICE FOUNDATION, INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption provided.that no part of its net income or asset shall belong to, or inure to the

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX

PHILIPPINE NATIONAL POLICE FOUNDATION,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 disposition thereof. which income should be returned for taxation. Thus, proceeds from the sale of recovered motorcycles and gain on sale of financial assets shall be subject under the National Internal Revenue Code of 1997.as amended.on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the to income tax.

(20%) final withholding tax: Provided. however, that interest income derived by it from a seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 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. depository bank under the expanded foreign currency deposit system shall be subject to 27(D)(1) in relation to Sec.57(A) both of the National Internal Revenue Code of 1997, as amended. and royalties derived from sources within the Philippines are subject to the twenty percent

2) VALUE ADDED TAX

thereto, in general, it shall be liable for value added tax on the revenues derived therefrom. If PHILIPPINE NATIONAL POLICE FOUNDATION,INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental

properties or services and importation of goods shall nevertheless be subject to the 12% of 1997, as amended. Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or value added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code

3) WITHHOLDING TAX

2-98, as amendedl 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 National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. PHILIPPINE NATIONAL POLICE FOUNDATION,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 XIIl Title II of the National Internal Revenue Code of 1997, as amended,as implemented by

PAGE2OF3

HN8n1

PHILIPPINE NATIONAL POLICE FOUNDATION, INC Date issued 530201 CTE No. 324-2017

TAXPAYER'S DUTIES& RESPONSIBILITIES 1) PHILIPPINE NATIONAL POLICE FOUNDATION, 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 showing that there has not been any change in its By-laws, Articles of Incorporation. manner of opcration 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. stating its gross income and expenses incurred during the preceding period and a certificate

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 ol 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. accounts and other pertinent records of tax-exempt organization or grantees of tax

3) Further, it 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 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

K-I-LMAT

PAGE3OF3