BIR Ruling No. 278-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 278-2018

CERTIFICATE OF TAX EXEMPTION

issued to

INDEPENDENT LIVING LEARNING CENTRE, INC. 1,Buenviaje St.,Brgy.Plainview.Mandaluyong City 1550 SEC Company Reg. No. TIN

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

1.Tuition Fees & Other School Related Fees; and 2 Income derived from the operation of cafeterias/canteens, dormitories. and bookstores located within its premises, owned, and operated by exclusively used for.educational purposes. Independent Living Learning Centre, Inc. to be actually, directly, and

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.

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 certification shall be valid from the date of issuance until revoked by this Office

documents as represented and submitted: However, if upon investigation, the BIR ascertains that the facts are different, then this Certificate shalli be considered null and void. This Certificate of Tax Exemption is .being issued on the basis of the facts and Issued this. day ofFEB 2 7.2018

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K-1-LMAT Commissioner of Internal Reven CAESAR R.DULAY 0136"8 5

INDEPENDENT LIVING LEARNING CENTRE, INC. CTE No...278.-2018

Date issued _2-m27- 2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX

INDEPENDENT LIVING LEARNING CENTRE,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:

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

INDEPENDENT LIVING LEARNING CENTRE, INC.'s interest income from currency bank deposits and yield from deposit substitute instruments used actually, directly and exclusively in Revenue District Office concerned an annual information return and duly audited financial statement together with the following: pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt 'educational institution it shall on an annual basis submit to the

a) Certification from their depository banks as to the amount of interest income system imposed by Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended; earned from passive investment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit

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 banks or placed in money markets, on or before the 15th day of the fourth of equipment, books and the like) to be funded out of the money deposited in month following the end of its taxable year (Sec. 4, Finance Department Order

No.137-87.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES

Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, as amended, INDEPENDENT LIVING LEARNING CENTRE,INC.'s gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT.

LIABILITY FOR INTERNAL REVENUE TAXES

1)INCOME TAX

INDEPENDENT LIVING LEARNING CENTRE,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 the National Internal Revenue Code of 1997, 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

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

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INDEPENDENT LIVING LEARNING CENTRE, INC. Date issued_2m27-2018 CTE No._278=2018

for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX(VAT)/PERCENTAGE TAX

services in the course of a business pursuit, including transactions incidental thereto, its revenues Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00). derived therefrom shall be subject to the twelve percent (12%) VAT, in case the gross receipts from (P1,919,500.00), or tothe three percent (3%) percentage tax, if gross receipts do not exceed One If INDEPENDENT LIVING LEARNING CENTRE,INC. is engaged in the sale of goods or such sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos

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

agent for the government if it acts as an.employer and its employees receive compensation income subject to.the withholding tax under Section 79 (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 57 of the National Internal Revenue Code of 1997, as amended, and as INDEPENDENT LIVING LEARNING CENTRE,INC.shall be constituted as withholding implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) INDEPENDENT LIVING LEARNING CENTRE, INC.is required to file on or before the 15th Balance Sheet with the Annual Information Return under oath, stating its gross income and change in its By-laws, Articles of Incorporation, manner of operation and activities as well as the aforementioned Annual Information Return. sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to day of the fourth month following the end of the accounting period a Profit and Loss Statement and expenses incurred during the preceding period and a certificate showing that there has not been any

2) 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 it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. 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 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 PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.

3K-I-LMAT

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