BIR Ruling No. 286-2021

REPUBLIC GF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

-286-203.1

CERTIFICATE OF TAX EXEMPTION

issued to

ST. THERESA'S COLLEGE. OUEZON CITY 116 D. Tuazon Avenue, Brgy. Lourdes. Sta. Mesa Heights, Quezon City.

SEC Company Reg. No. TIN:

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

2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores 1. Tuition and Miscellaneous Fees; and

located within its premises, owned and operated ST. THERESA'S COLLEGE QUEZON CITY, to be actually, directly and exclusively used for educational purposes.

iothing follow

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 ot issuance until revoked by this Office fon 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 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 ofAUG 0 2 202t

CAESAR R. DULAY Commissioner of. Internal Revenue 044306 K-i-MDT

ST. THERESA'S COLLEGE, QUEZON CITY Page 2 of 3 CTE NO. Date issued_AUG2 2Z C47-2a62E

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

1) INCOME TAX. ST.THERESA'S COLLEGE, QUEZON CITY 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 ji.Its revenues are actually, directly and exclusively used for educational purposes.

ST. THERESA'S COLLEGE, QUEZON CITY'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 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 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:

} Certification from their depository bank 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.

C) b Certification of actual utilization of the said income; and 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 I 5th day of the fourth month following the end of its taxabie 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, ST. THERESA'S COLLEGE,QUEZON CITY's, gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of ST...THERESA'S COLLEGE, QUEZON CITY are exempt from taxation provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX ST. THERESA'S COLLEGE, QUEZON CITY is subject to income tax 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 National Internal Revenue Code of 1997, as amended, on its income derived from any of its properties, real or personal, or any activity conducted for profit, which income should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes

' Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018 2 Deparment Order No. 149.95 dated November 24, 1995 amending Deparment Order No. 137-87

ST. THERESA'S COLLEGE, QUEZON CITY Page 3 of 3 Date issued_ AUG 1 2 -202 CTE No. HL 286-202

2) VALUE ADDED TAX/PERCENTAGE TAX

If ST. THERESA'S COLLEGE,OUEZON CITY 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 12% 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, services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106, 108 and 107 of the Nationat Internai Revenue Code of 1997, as amended.

3)WITHHOLDING TAX ST. THERESA'S COLLEGE, QUEZON CITY 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 implemented 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 1 997. as amended, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES 1) The honoraria/allowances given to members of the Board of Trustees must be reasonabie and

subject to liquidation (DOF Opinion No. 005-2019).

2) 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.

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

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

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 related to the activities for which the Association is registered. (Revenue Memorandum Circular No. {RMC] No. 76-2003)

5)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.

3 Republic Act No. 10963 increased the VAT threshotd from P1,919,500.00 to P3,000,000.00 effective Jan. 1, 2018