BIR Ruling No. 453-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

D Quezon City

Certificate of Tax Exemption No. SH30S 0453-202

CERTIFICATE OF TAX EXEMPTION

issued to

YOGI LEARNING CENTER FOUNDATION,iNC. Veterans Avenue, Zamboanga City 7000 SEC Company Reg. No. TIN:

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

2 Donations and Grants; Tuition and Miscellaneous Fees; and 3 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

located within its premises, owned and operated by YOGI LEARNING CENTER FOUNDATION, INC., to be actually, directly and exclusively used for educational purposes.

nothing follov

hereof. " It is liable, however, to all other tax'es not enumerated above. and.responsibilities stated in the Terms and Conditions hereto attached and made an integral part subject to the provisions of applicable BIR rules and regulations and the tax exemptions, liabilities

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

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 documents

Issued this day of AUG 1 7 2020

araMwe

CAESAR R.DULAY

K-1/spf-18-0783 Commissioner of Internal Revenue 036367 O

YOGI LEARNING CENTER FOUNDATION, INC. CTENo. SH30 -0 4 53 -2 0 2 8

Page 2 of 3 Date issued AUG 1 7 2020

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution

TAX EXEMPTION

1) INCOME TAX school must continue to meet the following requisites as set forth under Revenue Memorandum Order YOGI LEARNING CENTER FOUNDATION, INC. 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 (RMO) No 44-2016, to wit:

ii. Its revenues are actually, directly and exclusively used for educational purposes. It is a non-stock, non-profit educational institution; and

YOGI LEARNING CENTER FOUNDATION, INC.'s interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 15%l tax under the Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt institution it shall on an annual basis submit to the Revenue District Office concerned an annual information return and duly audited financial statement together with the following: expanded foreign currency deposit system imposed under Section 27(D)(1) of the National Internal

(a) Certification from their depository bank as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and 15% tax on interest income under the

expanded foreign currency 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

(c) Board Resolution by the school administration on proposed projects (i.e., construction and/or funded out of the money deposited in banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. improvement of school buildings and facilities, acquisition of equipment, books and the like) to be

137-87)2.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES

Pursuant to Section 109(1)(H) of the NIRC,YOGI LEARNING CENTER FOUNDATION,INC.'s

gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories, and

exempt from taxation provided they are owned and operated by it as ancillary services. bookstores located within the premises of YOGI LEARNING CENTER FOUNDATION, INC. are

LIABILITY FOR INTERNAL REVENUE TAXES

1)INCOME TAX YOGI LEARNING CENTER 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 under NIRC.

as amended, on its income derived from any of its properties, real or personal, or any activity conducted for profit, which income should be returned for taxation, unless said revenues are actually, directly and

exclusively used for educational purposes.

C

Republic Act No.10963 increased the tax rate fron 7.5% to 15% effective Jan. 1,2018

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

YOGI LEARNING CENTER FOUNDATION,INC. CTENo._SH 01-0 53. -'20 2 0

Page 3 of 3 Date issued AUG 1 f 2UZ0

VALUE ADDED TAX/PERCENTAGE TAX

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

.106 and: 107 of the National Internal Revenue Code of 1997, as amended. 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 Ibe

3)WITHHOLDING TAX the government if it acts as an employer and its employees receive compensation income subject to the 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 NIRC and as implemented by Revenue Regulations No. 2-98, as amended. withholding tax under Section 79 (A), Chapter XIII, Title II of the NIRC, as implemented by Revenue YOGI LEARNING CENTER FOUNDATION, INC. shall be constituted as withholding agent for

TAXPAYER DUTIES & RESPONSIBILITIES

1)The Board of Trustees of YOGI LEARNING CENTER FOUNDATION, INC.shall not approve the

payment of compensation or honorarium to the members of the Board. The giving of compensation, Honorarium or reasonable per diem is a form of private inurement which the law prohibits in the organization and operation of a non-stock, non-profit corporations. This act violates the requirement that no part of the net income or assets of the-corporation shall inure"to the benefit of any individual or specific person (CIR vs St. Luke's Medical Center, Inc. GR Nos. 195909 and 195960 dated September 26, 2012). While the trustees may receive reasonable per diem to subsidize their transportation expense

in accordance with the By-Laws of the Corporation, such per diem must be subject to proper liquidation, otherwise, it shall disqualify the Corporation from the availment of the tax exemption under Section 30

of the 1997 Tax Code, as amended (DOF Opinion dated January 29, 2019).

2 YOGI LEARNING CENTER 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, 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.

3)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

4)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

"for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003). sale or transfer of merchandise or for services rendered whichare not directly related to the activities

5)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.

O

3 Republic Act No.10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan.1.

2018