BIR Ruling No. 357-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No. SH30 -0357 -2020

CERTIFICATE OF TAX EXEMPTION

issued to

FAITH INTERNATIONAL ACADEMY OF DAVAO CITY, INC. #7 Jade St., Marfori Heights, Davao City 8000 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. Income derived from the operation of cafeterias/canteens, dormitories and 1.Tuition and Miscellaneous Fees; and and exclusively used for educational purposes. bookstores located within its premises, ownedand operated by INTERNATIONAL ACADEMY OF DAVAO CITY,INC., to be actually,directly FAITH

-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.

This certification shall be valid from the date of issuance until revoked by this Office for 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 Certificate of Tax Exemption is being issued on the basis of the facts and 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.

Issued this day of JUN 2 5 202Q

aeouna

CAESAR R.DULAY Commissioner nf Internal Revenue

PAUH INIEKNALIUNAL ACADEMY OF DAVAO CITY,INC. Page 2 of 3 CTE No.5{30.-U 357.- 2U Z 0 Date issued JUN 2 5 2820

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. FAITH INTERNATIONAL ACADEMY OF DAVAO CITY, 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 school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

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

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 imposed by Section 27(D)(1) of the National Internal Revenue Code of 1997, as amended. 15% tax on interest income under the expanded foreign currency deposit system

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 improvement of school buildings and facilities, acquisition of equipment, books and the like) to be 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. 137- 872

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.Pursuant to Section Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of FAITH INTERNATIONAL ACADEMY OF DAVAO CITY, INC. are exempt from taxation provided they are owned and operated by it as ancillary services. INTERNATIONAL ACADEMY OF DAVAO CITY,INC.'s, gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT. 109(1)(H) of the National Internal Revenue Code of 1997, as amended, FAITH

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX FAITH INTERNATIONAL ACADEMY OF DAVAO CITY,INC. is subject to income tax on all its income/receipts/revenues not exnresskv evamntod -

FAITH INTERNATIONAL ACADEMY OF DAVAO CITY, INC. Page 3 of 3 profit, which income should be returned for taxation, unless said revenues are actually directly and exclusively used for educational purposes. CTE No.5H30-O357-2 020 Date issued_JUN 2 5 2020

2) VALUE ADDED TAX/PERCENTAGE TAX If FAITH INTERNATIONAL ACADEMY OF DAVAO CITY,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.

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 National Internal Revenue Code of 1997, as amended.

3 WITHHOLDING TAX FAITH INTERNATIONAL ACADEMY OF DAVAO CITY, 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 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. (A), Chapter XIII, Title II of the National Internal Revenue Code of 1997, as amended, as implemented by 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

TAXPAYER DUTIES & RESPONSIBILITIES 1) FAITH INTERNATIONAL ACADEMY OF DAVAO CITY,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 income. Copy of this Certificate of Tax Exemption shall be attached to the Incorporation, manner of operation and activities as well as sources and disposition of aforementioned Annual Information Return. certificate showing that there has not been any change in its By-laws, Articles of

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any 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 accounts and other pertinent records of tax-exempt organization or grantees of tax provision of existing general and special law to the contrary notwithstanding, the books of 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 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.