BIR Ruling No. 666-2017

BUREAU OF INTERNAL REVENUE REPUPLICOF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City.

Certificate of Tax Exemption No. 666-2017

CERTIFICATE OF TAX EXEMPTION

issued to

ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) INC. St. Lucy Parish Compound, Brgy. Poblacion, Aringay, La Union SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose falls under Section 30 (E) of the National Internal Revenue Code (NIRC) 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

1. Membership fee; and 2. Donations.

nothing follow.

subject to the provisions of applicable BIR rules and regulations and the tax exemptions. integral part hereof. It is liable, however, to ail other taxes not enumerated above. liabilities and responsibilities 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 uniess

Certificate shall be deemed a revocation thereof upon the expiration of the three (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

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

Issucd this . day of -.DEC.20 2017-

C

K-1-JAC Commissioner of Internal Revenue CAESAR R. DULAY 011971

Page 2 of` 3 Aringay Development Coordinating Team (ADCT), Inc. Dalc issued12-20-2017 CI'E No. 666-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) INC. iS Certificate of Tax Exemption. Moreover. to be entitled to the tax exemptions enumcrated herein. the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013. only exempt from the payment of income tax on revenues and receipts enumerated on the

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

or any activity conducted for profit regardless of the disposition thereof. which incomc should be returned for taxation. tax on ail 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 the NIRC on its income derived from any of its properties, real or personal. ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) INC. is subject to incOme

and royalties derived from sources within the Philippines are subject to the twenty percent depository bank under the expanded foreign currency deposit system shall be subject to 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. seven and one-half percent (7-1/2%) final withholding income tax pursuant to Scction 27(D)(1) in relation to Sec. 57(A) both of the NIRC. (20%) final withholding tax: Provided, however. that interest income derived by it from a

2) VALUE ADDED TAX/PERCENTAGE TAX

P1,919.500.00. If ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) 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 Hundred Pesos (P1.919,500.00), or to the 3% percentage tax. if gross receipts do not exceed the gross receipts from such sales is One Million Nine Hundred Nineteen Thousand Five

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

it makes income payments to individuals or corporations subject to the withholding tax amended as withholding agent for the govermment if it acts as an employer and its employees receive pursuant to Section 57 of the NIRC, as implemented by Revenue Regulations No. 2-98. as ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) INC. shall be constituted compensation income subject to the withholding tax under Section 79 (A), Chapter XIII Title II of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended. or if

Aringay Development Coordinating Team (ADCT), Inc. Page 3 of 3 CTE No.666=2017 Date issued12-20-2017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) ARINGAY DEVELOPMENT COORDINATING TEAM (ADCT) INC. is required to file on or before the 15th day of the fourth month following the end of the accounting period a oath, stating its gross income and expenses incurred during the preceding period and a Profit and Loss Statement and Balance Sheet with the Annual Information Return under 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.

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 aiso 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. [RMCj No. 76) issue duly registered'receipts or sales or commercial invoices for each sale or transfer of 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