BIR Ruling No. 652-2019

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

Certificate of Tax Exemption No.

0652-2019

CERTIFICATE OF TAX EXEMPTION

issued to

DOMINICAN SCHOOL OF CAMALIG, INC

SEC Company Reg. No. Brgy. 2. Camalig. Albay TIN:

This certifies that the above-named corporation is a non-stock. non-profit educational institution and has proven by actual operation that its primary purpose is one of those enumerated under Sect:on 30(h1 or :he National Internal Revenue Code of 1997. as amended] It is exempt from INCOME TAX only on the following revenues or receipts:

I. Tuition fees and Other school fees; and 2 Income derived from the operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by DOMINICAN SCHOOL QF CAMALIG.INC., to be actualiy, directiy and exclusively used for educational

purposes. nothing foilows

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 from the date of issuance until revoked by this Office for vioiation 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 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 OCT1 7 2019

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Commissioner of Internal Revenue CAESAR R. DULAY

029857 K-1

C

DOMINICAN SCHOOL OF CAMALIG, INC. Page 2 of 3 CTE No. Date issued_OCL_1 7 2019 0652-2019

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock. Non-Profit Educational Institution under Section 3((H) of the National Internal Revenue Code of 1997, as Amended

TAX EXEMPTION

1) INCOME TAX. DOMINICAN SCHOOL OF CAMALIG.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:

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

HMINICAN SCHOOL OF CAMALIG, INC.'s interest income from 2"r " bank deposits and yield from deposit substitute instruments used actually, directly and exci sity in pursuance

of its purpose as an educational institution, are exempt from the 20% final tax and 15%' 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 frorn passive investment not subject to the 20% final withholding tax and 15%' tax on interest income under the expanded foreign currency deposit system imposed by Section 27 (D) (1) of the National Internal Revenue Code of ?997, as amended:

(b)Certification of actual utilization of the said income; and

(c)Board Resolution by the schooi administration on proposed projects (i.e.. construction and/or improvement of school buildings and facilities, acquisition of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets. on or before the 1 5th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-872

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the National Internal Revenue Code of 1997, as amended, DOMINICAN SCHOOI OF CAMALIG, INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens. dormitories and bookstores Iocated within the premises of DOMINICAN SCHOOL OF CAMALIG, INC. are exempt from taxation provided they are owned and operated by it as ancillary activities.

DOMINICAN SCHOOL OF CAMALIG, INC. Page 3 of 3 Date issued_OCI7 2019 CTE No 0 6 5 2 - 2 0 1 9

LIABILITY FOR INTERNAL REVENUE TAXES

I) INCOME TAX.

for taxation, unless said revenues are actually. directly and exclusively used for educational National Internal Revenue Coe of 1997. as amended. o1 its income derived from any of its properties, rea? or personal. or any activity conducted for profit, which income should be returned purposes. income/receipts/revenues not expressiy exempted and stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponaing internai revenue taxes imposed under DOMINICAN SCHOOL OF CAMALIG,INC. is subject to income tax on all its

2) VALUE ADDED TAX/PERCENTAGE TAX

If DOMINICAN SCHOOL OF CAMALIG, INC. is engaged in the sale of goods or service$ in the course of a business pursuit. including transactions incidenta! thereto. its revenues derived Million Pesos (P3,000.000.00)3, or to the 3% percentage tax. if gross receipts do not exeeed therefrom shall be subject to the 12% VAT. in case the gross receipts from such sales exceed Three P3.000.000.00.

Notwithstanding that it is a non-stock. non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3) WITHHOLDING TAX.

National internal Revenue Code of 1997. and as impiemented by Revenue Regulations No. 2-98: as amended. of 1997, as implemented by Revenue Regulations No. 2-98, as amended. or if it makes income withholding tax under Section 79 (A). Chapter XII1, Title HI of the National Internal Revenue Code government if it acts as an employer and its enployees receive compensation income subject to the payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the DOMINICAN SCHOOL OF CAMALIG, INC. shal! be constituted as withholding agent for the

TAXPAYER DUTIES & RESPONSIBILITIES

!} DOMINICAN SCHOOL OF CAMALIG,INC. is required to file on or before the 15th day of the fourth month following the end of the accounting period a Profit and Loss Statement and 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. 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

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 it has been granted tax exemptions or tax incentives, and its tax liabilities. if any. 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

3) Further. it is also required under Section 6(C in reiation to Section 237 of the National Internal related to the activities for which the Association is registered. (Revenue Memorandum Circular No. {RMC] No. 76-2003} 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

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