BIR Ruling No. 285-2021

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

Certificate of Tax Exemption No. 53c'-285-202t

CERTIFICATE OF TAX EXEMPTION

issued to

SAN FRANCISCO DE MALABON PAROCHIAL SCHOOL INC. Parroquia De San Francisco De Ais, Brgv. Samnalucan, Gen Trias, Cavite 4107 SEC Company Reg. No TIN:

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

2. Income derived from the operation of cafeterias/canteens, dormitories and 1. Tuition and Miscellaneous Fees; and bookstores located within its premises, owned and operated by SAN FRANCISCO exclusively used for educational purposes. DE MALABON PAROCHIAL SCHOOL INC., to be actually, directly and

nothing follows

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, liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an

violation 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 for its income tax exemption. character, purpose or method of operation of the corporation which are inconsistent with the basis This certification shall be valid from the date of issuance until revoked by this Office for

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. This Certificate of Tax Exemption is being issued on the basis of the facts and documents

Issued this day of_AUG S 2 2U2l

0e3a1v&e

K- Commissioner of Internal Revenue CAESAR R. DULAY P 044305

SAN FRANCISCO DE MALABON PAROCHIAL SCHOOL INC. Page 2 of 3 CTE NO. Date issued_AUG2 73-295-2020

TAX EXEMPTION TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION 1) INCOME TAX. SAN FRANCISCO DE MALABON PAROCHIAL SCHOOL INC. 44-2016, to wit: 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 under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock. Non-Profit Educational Institution

information return and duly audited financial statement together with the following: 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 institution it shall on an annual basis submit to the Revenue District Office concerned an annual exempt from the 20% final tax and 15%' tax under the expanded foreign currency deposit SAN FRANCISCO DE MALABON PAROCHIAL SCHOOL 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 It. I It is a non-stock, non-profit educational institution; and Its revenues are actually, directly and exctusively used for educational purposes.

b C) or placed in money markets, on or before the 15th day of the fourth month following the end of its taxabie year (Sec. 4, Finance Department Order No. 137- 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 87) Certification of actual atilization of the said income; and imposed by Section 27(D)(1) of the National Internal Revenue Code of 1997, as Certification from their depository bank as to the amount of interest income amended 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

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section owned and operated by it as ancillary services. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and.bookstores located within the premises of SAN FRANCISCO DE operations as a non-stock, non-profit educational institution are exempt from VAT. MALABON PAROCHIAL SCHOOL INC. art. exempt from taxation provided they are FRANCISCO DE MALABON PAROCHIAL SCHOOL INC.'s, groSs receipts from 109(1)(H) of the National Internal Revenue Code of 1997, as amended, SAN

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX the Certificate of Tax Exemption. Moreover, it is subject to 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 conducted SAN FRANCISCO DE_MALABON PAROCHIAL SCHOOL INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in

2 Deparment Order No. 149.95 dated Novermher 24. 1995 amending Department (rder No. 137-87 Republic Act No. I0963 in Sed the tax rate fron 7.5% to 15% c:ffective Jat. t, 2018 A

for protit. which incone shouid te reuerned for taxation. uniess said resenues are Hctually . directly dnd exelusiv cly dised tor edueational purposes.

2) VALUF ADDED TAX/PERCENTAGF TAX If SAN FRANCISCO DE MALABON PAROCHAL SCHOOL INC. i> CngH9ed in case the gross receipts from such sales exceed Fhree Milion Pesos (P3.ooo.0o0.op). or to the 3% percentage tax. if gross receipts do Hot exeeed %3.000.000.00. the sale of goods or services in the course of a business pursuit. including transactions ineidental thereto. its revenues derived theretrom shall be subject to the 12% VAI. in

Notwithstanding that it is a non-stock. non-profit corporation. its purchase ot goods or properties. services and importation of goods shall nevertheless be subiect to the 12%o VAT pursuant to Sections 106. 108 and 1o7 of the National Internal Revenue Code of 19)7. as (mendcd

3) WITHHOLDING TAX employees receive compensation ineome subject to the withholding tax under Section 79 (A). Chapter XH1. Title H of the Nationat Internal Revenue Code of 1997, as amended. as implenmented hy Revenue Regulations No. 2-98. as amended. or if it makes incone Revenue Reguiations No. 2-98, as amended. SAN FRANCISCO DE_MALABON PAROCHHAL_SCHOOL INC. ShaH! be constituted as withholding agent for the government it it acts as an employer and its 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)

TAXPAYER DUTIES & RESPONSIBILITIES L) The honoraria/ailowances given to members of the Board of' f'rustees must be reasonable and subject to liguidation (DOF Opinion No. 005-2019).

2) Required to file on or before the 15th day of the fourth month following the end ot' the aforementioned Annual Intormaion Return. disposition of income. Copy of this Certiticate of Tax Exemption shalt be attached to the aceounting period a Protit and toss Statenent and Balance Sheet with the Annual Intormation Return under oath. Stating ith gross ineone and expenses ineurred during the Artictes of Incorporation. manner ot operation and acdivities as well as sourees and preecsling period and a certiticate showing that there has not been any change in its By-laws

3:('nder Section 235 of the National Internal Revenue Cote of 1997. as amended. any provision of existing general and speeial law to the contrary notwithstanding. the books of accounts and other It has been granted tax exemptions or tax ineentives. and Jis tax liabilities. if any . pertinent records of tax-exempt organization or grantees of ex incentives shall he subject to examinanion by the BiR for purposes of ascertaining compliance with the conditions under w hich

+) Turther. it is also required under Seetion 6(C) in relation to Section 237 of the National Internal invoices for cach sale or transter of merehandise or tor services rendered which are not directy No. [RMC] No. 76-2003). Revenue Code of 1997. as amended. to issue duly registered receipts or sales or conmereiat retated to the activities for which the Association is registered. (Revenue Nemoranduo Cireular

5) Finally. is is subject to the payment of registration fee ot' PhP 500.00 as prescribed in Section 2360 B) ot the National internal Revente (ode of {o7. as arnended.

Q

Iu

b. I