BIR Ruling No. 291-2018

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

Certificate of Tax Exemption No. 291-2018

CERTIFICATE OFTAXEXEMPTON

issued to

MAGUINDANAON DEVELOPMENT FOUNDATION. INC Odi St., Pantua Village, Koronadal City 9506 SEC Company Reg. No. TIN:

and 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: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Grants and Donations.

othing follow

integral part hereof. It is liable, however, to all other taxes not enumerated above. subject to the provisions of applicabie BIR rules and regulations and the tax exemptions. 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 unless

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 may be renewed upon filing of a subsequent application for revalidation

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_MAR 0 1.2018

K-I-LMAT Commissioner of Internal Revenue ieamwe CAESAR R. DULAY 013623

MAGUINDANAON DEVELOPMENT FOUNDATION, INC. CTE No. 291-2018

Date issued 3--1m2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

D INCOME TAX

benefit of any member, organizer, officer or any specific person. MAGUINDANAON DEVELOPMENT FOUNDATION, INC. is exempt from the Exemption, provided, that no part of its net income or asset shall belong to, or inure to the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax

LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX

disposition thereof, which income should be returned for taxation. MAGUINDANAON DEVELOPMENT FOUNDATION, INC. is subject to income tax any of its properties, real or personal, or any activity conducted for profit regardless of the 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

depository bank under the expanded foreign currency deposit system shall be subject to 57(A) both of the National Internal Revenue Code of 1997. as amended) 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 (20%) final withholding tax: Provided, however, that interest income derived by it from a fifteen (15%)' final withholding income tax pursuant to Section 27(D)(1) in relation to Sec.

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

to'the three percent (3%) percentage tax, if gross receipts do not exceed Three Million Pesos 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 Three Million Pesos (P3,000,000.00)2, or (P3.000,000.00). If MAGUINDANAON DEVELOPMENT FOUNDATION, INC. is engaged in the sa|e

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

3) WITHHOLDING TAX

2-98. as amended. compensation income subject to the. withholding tax under Section 79 (A), Chapter XIlI. 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. MAGUINDANAON DEVELOPMENT FOUNDATION, INC. shall be constituted as withholding agent for the governmerit if it acts as an employer and its employees receive Title I1 of the National Internal Revenue Code of 1997. as amended, as implemented by

: Republic Act (RA) No. 10963 increased the tax rate from 7.5% to 15% effective January 01. 2018 Republic Act (RA) No. 10963 increased the VAT threshold fron P1.919,500.00 to P3.000.000.00 effective January 01.2018

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MAGUINDANAON DEVELOPMENT FOUNDATION, INC. Date issued 1--2013 CTE NO. 2912018

TAXPAYER'S DUTIES & RESPONSIBILITIES 1) MAGUINDANAON,DEVELOPMENT FOUNDATION, INC. is required to file on or 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 and Loss Statement and Balance Sheet with the Annual Information Return under oath. this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. before the 15th day of the fourth month following the end of the accounting period a Profit stating its gross income and expenses incurred during the preceding period and a certificate

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any compliance with the conditions under which it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. provision of existing general and special law to the contrary notwithstanding, the books of incentives shall be subject to examination by the BIR for purposes of ascertaining accounts and other pertinent records of tax-exempt organization or grantees of tax

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National 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). Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or

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.

K-I-LMAT

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