BIR Ruling No. 500-2017

REPUELICOF THE PHLIPPINES

IPARTMENTOYFINANT BI REAU OF INTTRNAL REVENUE

0u070:13

Certiticate of Tax Psemption No.

-7

CERTIFICATE OF EAX EXEMPTION

issued to

ATENEO DE DAVAO UNIVERSITY H. Jactnto Strect. 8016 Davao City. Philippines SEC Company Reg. No. TIN:

This certifies that the above-named corporation is a non-stock. non-profit corporation and has proven bv actual operation that its primary purpose is one ot those enumerated under

INCOME TAX ontv on the foflowing revenues or receipts: Section 30(H) of the Nationat Internal Revenue Code of 1997. as amended. It is exempt from

1 3. Tuition Fees and Other school fees: Incomc derived from operation of cafeterias/canteens and bookstores located within Donations; and its premises, owned and operated by ATENEO DE DAVAO UNIVERSITY,to be

actually, directly and exclusively used for educational purposes.

tothing 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.

This certification shall be valid from the date of issuance until revoked by this Office for violation of any provisions of applicable rules and reguiations of the BiR. or the terms and conditions herein set forth. It shall likewise be revoked it there are material changes in the character. purpose or method of operation of the corporation which are ineonsistent with the basis for its income tax exemption.

documents as represented and submitted. However. if upon investigation. the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

that the facts are different. then this Certificate shall be considered null and void.

Issued this .day of _NOV 0 6 2017

CAESAR R. DUIAY

K-I-JAC Commissioner of Internal Revenue 010832

Ateneo De Davao teiversity pagc 2 of 3 CTF No I}t issucd

THRMSAND)(H"TIONS OF THECERTIFICATE OF TAX *XEMTION For Non-Stock, Non P'rofit Fducational Institution under Seetiou 3 (H) of the National Intern: Fvenuc Code of 1997.as Amended

TAX EXEMPTION

1) INCOME TAX.ATENEO DE DAVAO UNIVERSIIY is exempt from the payment of income

tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the foilowing requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016. to wit:

H. Its revenues are actually. directly and exclusis cly used for cducational purposes. I. lt is a non-stock. non-profit educational institution; and

ATENEO DE DAVAO UNIVERSITY's interest incone from currency bank deposits and yield from deposit substitute instrunents used actually, directiy and exclusively in pursuanee of its purpose as an educational institution. are exempt from ithe 20% final tax and 7 t/2% tax on interest

that as a tax-exempt educational institution it shall on an aunuat hasis submit to the Revenue District Offiec concerned an annual information return and duly audited financial statement together with the following: income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) ot the National Internal Revenuc Code of 1997. as amended. subject to compliance w ith the conditions

(a)Certification from their depository banks as to thc amount of interest income earned from passive investment not subject to the 20% final withhoiding tax and 7 t/27% tax on interest income under the expanded foreign eurrency deposit system imposed by Section 27 (D) (1) of the National Internal Revenue Code of 1997. as amended:

(b)Certification of actual utilization of the said income: and

construction and/or improvement of schooi buildings and facilities. acquisition (c) Board Resolution by the school administration on proposed projects (i.e.

banks or piaced in money markets. on or before the I 5th day of the fourth month foilowing the end ot its taxable year (Sec. 4. Finance Department Order No) ot equipment. books and the like) to be funded out of the money deposited in 137-87

E) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. as a non-stock. non-profit educational institution are exempt from VA'r. 109(!)(H) of the NIRC, ATENEO DE DAVAO UNVERSITY's gross receipts from operations Pursuant to Section

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

Exemption. Moreover. it is subject to incomc/receipts/revenues not expressly exempted and stated in the Certificate of Tax ATENEODEDAVAO.UNIVERSITYissubiecttoincome tax nall its

Department Order No. 149-95 dated November 24. 1995 amending Department Order No. 137-87

P'age 3 g 3 Atenco Iy Davao t. niversity Date issnd T.T7 I"te No. 500-2 17

cdhi atinl purposes. fron ans of i- prosa. she! I he reurned for taxaton. tmtes. .id revenues are actuail,.direeth ond exelusively used tot the care-p ..ngirnel evenuc taxe- imr.s real or persoual. or any act..: W.- I Hnder ..R( as mmendei on i., om' deriesd ondu'ted for profit. which :

2) VALUE ADDED TAHPERCENTAGE TAN

receipis do not exceed f1.9(9.500.00. Nineteen Thousand Five Hundred Pesos (P1.919.500.00). or to the 3% pereentage tax. if gross of a business pursuit. including transactions incidentat thereto. its revenues derived therefrom shall he subiect to the I29-o VAT. in case the gross receipts from such sales is One Million Nine Hundred tf ATENEO DF DAVAQ UNVERSITY is engaged in the sale of goods or services in the course

Secums 106 and 107 of the NIRC Notw ithstanding that it is a non-stock. non-profit corporation, is purchase of goods or properties or ser ices and importation of goods shall neverthetess be subject to the 12% VAT pursuant to

3) WITHHOLDING TAX

government it it acts as an employer and its employees receive compensation income subject to the by Revenue Regulations No. 2-98. as amended. withhoiding tax under Section 79 (A). Chapter XIH. Tite H of the NIRC. as implemented by) corporations subject to the withhoiding tax pursuant to Section 57 of the NIRC. and as implemented Revenuc Regulations No. 2-98. as amended. or if it makes income payments to indiv iduais or ATENFO DE DAVAO UNIVERSITY shail be constituted as withholding agent for the

TAXPAYER DUTIES & RESPONSIBHLITIES H ATENEO DE DAVAO UNVERSITY is required to file on or before the 15th day ot the fourth month following the end ot the accounting period a Protit and Loss Statement and Batance Sheet with the Annual Information Return under oath. stating its gross income and expenses incurred during the preceding period and a certificate show ing that there has net been any change in its By laws. Articles of Incorporation. manner of operation and activities as well as sources and isposition of income. Copy of this Certificate ot Tax Exemption shall be attached to the aforementioned Annual Infomation Return.

2) Under Section 235 of the National Internal Revenue Code of 1997. as amended. any prov ision of It has been granted fax exemptions or tax incentives. and its tax tiabilities. if any.t 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 he subject to examination by the BiR for purposes of ascertaining compliance with the conditions under which

3) Further. it is also required under Section 6(C) in relation to Section 23" of the Vational Internal Revenuc Code of 1997. as amended. to issuc duly registered receipts or sales or commerciat 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 Circuiar Vo.(RMC!Mo. 76-2003

4)Finally. it is suhicct to the payment ot'registration fee of Php 500.10 as prescrihed in Section 236(B) ot te National nternat Revenue oe of {o9T. ts anended.