BIR Ruling No. 318-2020

REPUBLICOFTHE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

5H30-6318-2323

CERTIFICATE OF TAX EXEMPTION

issued to

ASIANCOLLEGE OF TECHNOLOGY INTERNATIONAL

Leon Kilat cor. P. Del Rosario Sts., Kalubihan, Cebu City 6000 EDUCATIONAL FOUNDATION.INC. SEC Company Reg. No. TIN:

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

Tuition fees and Other school fees; and Income derived from the operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by ASIAN COLLEGE OF TECHNOLOGY INTERNATIONAL EDUCATIONAL FOUNDATION.INC., to be actually, directly and exclusively used for educational purposes.

nothing follows-

Hiabilities 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. subject to the provisions of applicable BIR rules and regulations and the tax exemptions,

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

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 JUN 1 5 2020

Waia

CAESAR R.DULAY

Commissioner of Internal Revenue

Page 2 of 3 Educational Foundation, Inc. sian College of Technology International CTENo.S43003- Date issued JaT

TERMS AND CONDITIONS

OF THE CERTIFICATE OF TAX EXEMPTION

For Non-Stock, Non-Profit Educational Institution

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended

TAX EXEMPTION

D INCOME TAX.ASIAN COLLEGE OFTECHNOLOGY INTERNATIONAL

EDUCATIONAL FOUNDATION,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:

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

ASIAN COLLEGE OF TECHNOLOGY INTERNATIONAL EDUCATIONAL

FOUNDATION, 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 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 from 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 1997, as amended;

(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

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 15th day of the fourth month

foilowing the end of its taxable year (Sec. 4, Finance Department Order No.

137-87)2

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

109(1)(H) of the National Internal Revenue Code of 1997,as amended,ASIAN COLLEGE OF

TECHNOLOGY INTERNATIONAL EDUCATIONAL FOUNDATION, 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 located within the premises of ASIAN COLLEGE OF TECHNOLOGY

INTERNATIONAL EDUCATIONAL FOUNDATION, INC.are exempt from taxation

provided they are owned and operated by it as anciliary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

Page 3 of 3 Educational Foundation, Inc. Suan Coilege of Technology International CTENo.SH30-1 Date issuedJuna

the corresponding internal revenue taxes imposed under National Internal Revenue Code of 1997. as amended, on its income derived from any of its properties, real or personal, or any activity FOUNDATION, INC. is subject to income tax on all its income/receipts/revenues not conducted for profit, which income should be returned for taxation, unless said revenues are ASIAN COLLEGE OF TECHNOLOGY INTERNATIONAL EDUCATIONAL expressly exempted and stated in the Certificate of Tax Exemption. Moreover, it is subject to

actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If ASIAN COLLEGE OF TECHNOLOGY INTERNATIONAL EDUCATIONAL

FOUNDATION, INC. is engaged in the sale of goods or services in the course of a business

pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subject to

the l12% VAT, in case the gross receipts from such sales exceed Three Million Pesos

(P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

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 National Internal Revenue Code of 1997, as amended.

3)WITHHOLDING TAX.

ASIAN COLLEGEOFTECHNOLOGYINTERNATIONALEDUCATIONAL

FOUNDATION,INC.shall be constituted as withholding 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 National Internal Revenue Code of 1997, as amended,

as impiemented by 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, and as implemented by Revenue Regulations No. 2-

98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

)ASIAN..COLLEGE.OF..TECHNOLOGYINTERNATIONALEDUCATIONAL

FOUNDATION,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 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 incentives shall be subject to

examination by the BIR for purposes of ascertaining compliance with the conditions under which

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

3)Further, it is also required under Section 6(C) in relation to Section 237 of the National Internai

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

reiated to the activities for which the Association is registered. (Revenue Memorandum Circular

No.[RMC] No.76-2003