BIR Ruling No. 288-2018

TEH BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

W Certificate of Tax Exemption No. 288--2018

CERTFICATE OF TAXEXEMPTION

issued to

and has proven by actual operation that its primary purpose is one of those enumerated under INCOME TAX only on the following revenues or receipts: Section 30 (E) of the National Internal Revenue Code of 1997, as amended. It is exempt from This certifies that the above-named corporation is a non-stock, non-profit corporation 1. Subsidies; 3. 2 Donations and contributions; and Pastoral -- mass stipends. 1916 Oroquieta St., Brgy. 344. Zone 035. Sta Cruz, Manila 1003 SOCIETY OF THE DIVINE WORD SEC Company Reg. No. TIN:

nothing follows

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. Subject to the provisions of applicable BIR rules and regulations and the tax exemptions, integral part hereof. It is liable, however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an 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 of_MAR 0 1 201R

SK-1-LMAT Cominissioner of Internal Revenue CAESAR R.DULAY 013629

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

D INCOME TAX

:SOCIETY OF THE DIVINE WORD, INC. is exempt from the payment of income tax that no part of its net income or asset shall belong to, or inure to the benefit of any member, oniy on revenues and receipts enumerated on the Certificate of Tax Exemption, provided. organizer, officer or any specific person. LIABILITY FOR INTERNAL REVENUE TAXES 1 INCOME TAX

its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. Moreover, it is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code of 1997, as amerided, on its income derived from any of SOCIETY OF THE DIVINE WORD,INC. is subject to income tax on all its income/ receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption.

seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the Naticnal Internal Revenue Code of 1997, as benefits from deposit substitute instruments and fron 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 subject to amended. Likewise, interest income from currency bank deposits and yield or any other monetary

2) VALUE ADDED TAX(VAT)/PERCENTAGL TAX

If SOCIETY OF THE DIVINE WORD, INC. is engaged in the sale of goods or services Hundred Pesos (P1,919,500.00), or to the three percent (3%) percentage tax, if gross in the course of a business pursuit, including transaetions incidental thereto, its revenues receipts from such sales. exceed One Million Nine Hundred Nineteen Thousand Five receipts do not exceed One Million Nine Hundred Nincteen Thousand Five Hundred Pesos (P1,919,500.00). derived therefrom shall be subject to the iwelve percent (12%) VAT, in case the gross

twelve percent (12%) VAT pursuant to Sections 106 (A) of the National Internal Revenue or properties or services and importation of goods shall nevertheless be subject to the Code of 1997, as amended. Notwithstanding the fact that it is a non-stock, non-profit corporation, its purchase of goods

3) WITHHOLDING TAX

the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997. as amended. as implemented by Rey Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuais or corporations subject to SOCIETY OF THE DIVINE WORD, INC. shall be constituted as withholding agent for subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the National the government if it acts as an employer and its employees receive compensation income GY

TAXPAYER'S DUTIES & RESPONSIBILITIES 1) SOCIETY OF THE DIVINE WORD, 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 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. and Balance Sheet with the Annual Information Return under oath, stating its gross income

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any compliance with the conditions under which it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. provision of existing general and special law to the contrary notwithstanding, the books of incentives shall "be subject to examination by the BIR"for purposes of ascertaining 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.

-MA