BIR Ruling No. 41-2018

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

Certificate of Tax Exemption No. 041--2018

CERTIFICATE OF TAX EXEMPTION

issued to

BAYAN ACADEMY FOR SOCIALENTREPRENEURSHIP AND HUMAN RESOURCE DEVELOPMENT, INC. 2/F Cinderella Bldg., #825 EDSA, Quezon City SEC Company Reg. No. TIN:

and 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

1. Registration fees and Culinary enrollment fees; 2. Donations and Grants -- Award; and

3. Income derived from operation of cafeterias/canteens, dormitories and

ACADEMY FOR SOCIAL ENTREPRENEURSHIP ANDHUMAN RESOURCE DEVELOPMENT, INC., to be actually, directly and exclusively bookstores located within its premises, owned and operated by BAYAN used for educational purposes.

-nothing follows

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

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and basis for its income tax exemption. 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 This certification shall be valid from the date of issuance until revoked by this Office

that the facts are different, then this Certificate shall be considered null and void. documents as represented and submitted. However, if upon investigation, the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and Issued this day of JAN.24 2018

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY Muua C.lu

Page 2 of 3 aman Resource Development, Inc. cademy for Social Entrepreneurship and Date issued _1--24m2018 CTE No.041-2018

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. BAYAN ACADEMY FOR_SOCIAL ENTREPRENEURSHIP AND

the school must continue to meet the following requisites as set forth under Revenue Memorandum HUMAN RESOURCE DEVELOPMENT, 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 Order (RMO) No 44-2016, to wit:

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

BAYAN ACADEMY FOR SOCIAL ENTREPRENEURSHIP AND HUMAN RESOURCE DEVELOPMENT, 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 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 Revenue District Office concerned an annual information return and duly audited financial statement together with the following:

(a)Certification from their depository banks as to the amount of interest income 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 of 1997, as amended: system imposed by Section 27 (D) (1) of the National Internal Revenue Code

(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 month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)1. of equipment, books and the like) to be funded out of the money deposited in

2 VALUE ADDED TAX VAT) ON EDUCATIONAL SERVICES.Pursuant to Section 109(1)(H) of the NIRC, BAYAN ACADEMY FOR SOCIAL ENTREPRENEURSHIP AND HUMAN RESOURCE DEVELOPMENT, 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

BAYAN ACADEMY FOR SOCIAL ENTREPRENEURSHIP AND HUMAN RESOURCE

DEVELOPMENT, INC. is subject to income tax on all its income/receipts/revenues pot

ace

ademy for Social Entrepreneurship and CTE No.041208

Page 3 of 3 aman Resource Development, Inc. Date issued 1-24.-2018

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.

2) VALUE ADDED TAX/PERCENTAGE TAX

If BAYAN ACADEMY FOR SOCIAL ENTREPRENEURSHIP AND HUMAN RESOURCE DEVELOPMENT,INC.is engaged in the sale of goods or services in the course of a business

the 12% VAT, in case the gross receipts from such sales is One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed P1,919,500.00. pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subject to

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.

3WITHHOLDING TAX

DEVELOPMENT, INC. shall be constituted as withholding agent for the government if it acts as 98, as amended, or if it makes income payments to individuals or corporations subject to the an employer and its employees receive 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- BAYAN ACADEMY FOR SOCIAL ENTREPRENEURSHIP AND HUMAN RESOURCE

withholding tax pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

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

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 tol

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

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

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.