BIR Ruling No. 296-2018

RLPLBLICYTHEPAILIPPINES

DEPARTMENT OF FINANCE BUREAUOF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

296--2018

CERTIFICATE OF TAX EXEMPTION

issued to

SOCIETY OF CLARETIAN MISSIONARY SISTERS INC.

#166 Maginhawa St.. Sikatuna Village. Diliman, Quezon City l101

SEC Company Reg. No. TIN

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

1. 2 Donations; and Subsidies.

nothing follow

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 for three (3) years from the date of issuance unless 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 Certificate may be renewed upon filing of a subsequent application for revalidation provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period.

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_MAR 0 1.2018

1euor CAESAR R. DULAY

K-I-LMAT Commissioner of Internal Revenug 013951

SOCIETY OF CLARETIAN MISSIONARY SISTERS, INC. CTE NO. Date issued 296-2018 3120

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTIONS

D INCOME TAX.

SOCIETY OF CLARETIAN MISSIONARY SISTERS,INC. is oniy exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exemption enumerated herein, the association/corporation/organization must continue to meet the requirements set forth under Revenue Memorandum Order (RMO) No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

D INCOME TAX

SOCIETY OF CLARETIAN MISSIONARY SISTERS,INC. is subject to income tax on all its income/ receipts/revenues not expressly exempted and stated in the Certificate of

under the National Internal Revenue Code of 1997, as amended, on its income derived from disposition thereof. which income should be returned for taxation. any of its properties, real or personal, or any activity conducted for profit regardless of the Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed

seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internal Revenue Code of 1997, as 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! 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 (20%) final withholding tax: Provided, however. that interest income derived by it from a

amended.

2).VALUE ADDED TAX (VAT)/PERCENTAGE TAX

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

twelve percent (12%) VAT pursuant to Sections 106 and 107 of the National Internal Notwithstanding the fact 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 Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

2-98. as amended. compensation income subject to the withholding tax under Section 79 (A), Chapter XIIl. 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, as implemented by Revenue Regulations No. withholding agent for the government if it acts as an employer and its employees receive Title II of the National Internal Revenue Code of 1997, as amended, as implemented by SOCIETY OF CLARETIAN MISSIONARY SISTERS,INC. shall be constituted as

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SOCIETY OF CLARETIAN MISSIONARY SISTERS, INC Date issued312018 CTE NO. 2962018

TAXPAYER'S DUTIES & RESPONSIBILITIES

D SOCIETY OF CLARETIAN MISSIONARY SISTERS,INC. is required to file on or

before the I5th 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 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 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

compliance with the conditions under which it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. incentives shall be subject to examination by the BIR for purposes of ascertaining

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.

K-I-LMAT

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