BIR Ruling No. 514-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

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Certificate of Tax Exemption No.

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CERTIFICATE OF TAX EXEMPTION

issued to

MASBATE IKTHUS CHRISTIAN SCHOOL, INC! Baptist Church Compound. Mabini St.. Masbate City SEC Company Reg. No. TIN

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

1. Ci c Grants and donations. Enrollment and Miscetianeous fees; and Tuition fees:

lothing follows

integral part hereof. It is liable. however, to all other taxes not enumerated above. subject to thc 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

conditions herein sct forth. It shall likewise be revoked if there are material changes in the basis for its income tax exemption. for violation of any provisions of applicable rules and regulations of the BIR. or thc terms and charactcr, purpose or method of operation of thc corporation which are inconsistent with the Ihis certification shall be valid from the date of issuance until revoked by this Office

that the facts arc different. then this Certificate shall be considered null and void. documents as represcnted and suhmitted. 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. :0V 0 7 2017

1a3

K-1 Commissioner of Internal Revenur CAESAR R. DULAY 10969

Masbate Ikthus Christian School. Inc. Page 2 of 4 Date Issued: -?--: ? CTE No. 1-707

Under Section 30 (H) of the National Internal Revenue Code of 1997, as amended OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock, Non-Profit Educational Institution TERMS AND CONDITIONS

TAX EXEMPTION

D) INCOME TAX

as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: 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 MASBATE IKTHUS CHRISTIAN SCHOOL,INC. is exempt from the payment of

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

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

a) Certification from their depository banks as to the amount of interest National Internal Revenue Code of i997. as amended: 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 system imposed by Section 27 (I) (1) of thc

b) Certification of actual utilization of thc said incomc: and

C} Board Resolution by the school administration on proposed projects 4, Finance Department Order No. 137-87)'. money deposited in banks or placed in money markets, on or before the (i.e.- construction and/or improvement of school buildings and facitities. acquisition of equipment, books and thc likc) to bc funded out of the 15th day of the fourth month following the end of its taxable year (Sec.

1) VALUE-ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section non-profit educational institution are exempt from VAT 109(1)(H) of the National Internal Revenue Code of 1997, as amended. MASBATE IKTHUSCHRISTIAN SCHOOL, INC.'s gross receipts from operations as a non-stock.

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

514-2017 Masbate Ikthus Christian School. Inc. CTE No 11-7-2017 Page 3 of 4 Date Issued.

LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

should be returned for taxation. unless said revenues are actually.directly and exclusively used for educational purposes. 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 any of its properties,real or personal, or any activity conducted for profit, which income MASBATE IKTHUS CHRISTIAN SCHOOL,INC.is subject to income tax on all its under the National Internal Revenue Code of 1997.as amended.on its income derived from

2) VALUE-ADDED TAX (VAT)

general, it shall be liable for VAT on the revenues derived therefrom. or services in the course of a business pursuit, including transactions incidental thereto, in If MASBATE IKTHUS CHRISTIAN SCHOOLINC.is engaged in the sale of goods

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% amended. VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997,as

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 corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997,as amended,and as implemented by Revenue Regulations No.2- National Internal Revenue Code of 1997, as amended, as implemented by Revenue 98, as amended. MASBATE IKTHUS CHRISTIAN SCHOOL,INC.shall be constituted as withholding Regulations No.2-98, as amended, or if it makes income payments to individuals or

TAXPAYER DUTIES& RESPONSIBILITIES

1) MASBATE IKTHUS CHRISTIAN SCHOOL,INC. is required to file on or before the that there has not been any change in its By-laws, Articies 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. Statement and Balance Sheet with the Annual Information Return under oath, stating its 15th day of the fourth month following the end of the accounting period a Profit and Loss gross income and expenses incurred during the preceding period and a certificate showing

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

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

Page 4 of 4 Masbate Ikthus Christian Schoot, Inc. CTE No. Date Issued: 514-2017 11-7-2017

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 corporation is registered. (Revenue Internal Revenue Code of 1997. as amended. to issue duiy registered receipts or sales or 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 Revenuc Code of 1997, as amended.