BIR Ruling No. 461-2017

REPUBLIC OF THF PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OP FINANCE

Certificate of Tax Exemption No.

x g7

CERTIFICATE OF TAX EXEMPTION

issued to

COMMUNITY CRAFTS ASSOCIATION OF THE PHILIPPINES, INC. OCAP Bldg.. G. Araneta Ave. cor. Kaliraya St.. Tatalon. Quczon City SEC Company Reg. No. TIN

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

2. Membership dues 1 Donations/ Grants

-nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. subiect to thc provisions of applicable BIR rules and regulations and the tax excmptions. liabilities and responsibitities stated in the Terms and Conditions hereto attached and made an

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. This certification shall be valid for three (3) years from the date of issuance unless

Certificate shall be deemcd a revocation thereof' upon the expiration of the threc (3)-year period. provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

documcnts 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 H+

Issucd this day of

1aun1we

K-I Commissioner of Internal Revenue CAESAR R. DULAY 009312

CELIA C. KING

Community Crafts Association of the Philippines. Ine. Page 2 of 3 Date issued CTE No.

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. COMMUNITY CRAFTS ASSOCIATION OF THE PHILIPPINES on the Certificate of Tax Exemption. Moreover. to be entitled to the tax exemptions enumerated herein. the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013. INC. is only exempt from the payment of income tax on revenues and receipts enumerated

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

income tax on all its incomc/reccipts/revenues not expressly exempted and stated in the taxes imposed under the NIRC on its income derived from any of its properties, real or Certificate of'Tax Exemption. Moreover. it is subject to the corresponding internal revenue COMMUNITY CRAFTS ASSOCIATION OF THE PHILIPPINES, INC. is subject to personal. or any activity conducted for profit regardless of the disposition thereof., which income should be returned for taxation.

activities, receipts from producers' trade fairs, receipts from community livelihood seminars and consultancies are subject to income tax. In particular, rental income from the building and vehicle, receipts from fund-raising

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. (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 seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section and royalties derived from sources within the Philippines are subject to the twenty percent 27(D)(1) in relation to Sec. 57(A) both of the NIRC.

2) VALUE ADDED TAX

If COMMUNITY_CRAFTS_ASSOCIATION OF THE PHILIPPINES, INC. is engaged in the sale of goods or services in the course of a business pursuit. including transactions incidental thereto, in general. it shall be liable for V AT on the revenues derived therefrom.

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 NIRC.

3) WITHHOLDING TAX

as amended, or if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC. as implemented by Revenue Regulations No. 2-98, as amended COMMUNITY CRAFTS.ASSOCIATION OF THE _PHILIPPINES.INC. shalI be constituted as withholding agent for the goveriment if it acts as an employer and its employees receive compensation income subject to the withholding tax under Section 79 (A), Chapter XIII, Title HI of the NIRC. as implemented by Revenue Regulations No. 2-98.

Community Crafts Associution of the Philippines, Inc. Page 3 of 3 Date issued CTE No. &

TAXPAYER'S DUTIES & RESPONSIBILITIES

EY COMMUNITY CRAFTS ASSOCIATION OF THE PHILIPPINES INC. is required to file on or before the 15th day of the fourth month following the end of the accounting 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 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 changc in its By-laws,"Articles of Annual Information Return. 2) Under Section 235 of the NIRC. 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. 3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC to 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) issue duly registered receipts or sales or commercial invoices for each sale or transfer of

4) Finally. it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIRC.