BIR Ruling No. 545-2020

REPUBLICOFTHE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. SH>0-0545-2020

CERTIFICATE OF TAX EXEMPTION issued to

PSHF LIGHTHOUSE LEARNING CENTER, INC. Charlie Ville, Bulacao. Cebu City 6000 SEC Company Reg. No. TIN:

INCOME TAX only on the following revenues or receipts: 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 This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Tuition fees and Other school fees; and

educational purposes. Income derived from the operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by PSHF LIGHTHOUSE LEARNING CENTER, INC. to be actually, directly and exclusively used for

-nothing follows

subject to the provisions of applicable BIR.rules. .and.regulations and the tax exemptions, integral part hereof. It is liable, however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an

for 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 certification shall be valid from the date of issuance until revoked by this Office

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

Issued this day of SEP 23 J.

eow

K-1-MDT Commissioner of Internal Revenue CAESAR R. DULAY M 036746

PSHF LIGHTHOUSE LEARNING CENTER, INC:M Page 2 of 3 CTE No. Date issued sEP Z 3 ZUzu Uais

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. PSHF LIGHTHOUSE LEARNING CENTER, INC._is eXempt from the forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: Exemption. It is understood that the school must continue to meet the following requisites as set payment of income tax only on revenues and receipts enumerated on the Certificate of Tax

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

deposits and yield from deposit substitute instruments used actually, directly and exclusively in 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, subject to compliance with Revenue District Office concerned an annual information return and duly audited financial statement together with the following: PSHF LIGHTHOUSE LEARNING CENTER, INC's interest income from currency bank 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 the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the

(a) Certification from their depository banks as to the amount of interest income system imposed by Section 27 (D) (1) of the National Internal Revenue Code of 1997, as 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

(b) Certification of actual utilization of the said income; and

(c) Board Resolution by the school administration on proposed projects deposited in banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance (i.e., construction and/or improvement of school buildings and facilities, Department Order No. 137-87)2. acquisition of equipment, books and the like) to be funded out of the money

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 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 PSHF LIGHTHOUSE LEARNING CENTER, INC. are exempt from taxation provided they are owned 109(1)(H) of the National Internal Revenue Code of 1997, as amended, PSHF LIGHTHOUSE LEARNING CENTER, INC.'s gross receipts from operations as a non-stock, non-profit and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX.

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax Exemption. PSHF LIGHTHOUSE LEARNING CENTER, INC. is subject to income tax on all its

2 Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87. Republic Act No. 10963 increased the tax rate from 7.5% to 15%effective January 1, 2018.

Page 3 of 3 PSHF LIGHTHOUSE LEARNING CENTER, INC. CTE No.Sj10- 5 452 0 2 Date issuedEl 2 3 2U20

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. 2) VALUE ADDED TAX/PERCENTAGE TAX

If PSHF LIGHTHOUSE LEARNING CENTER, INC,is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed therefrom shall be subject to the 15% VAT, in case the gross receipts from such sales exceed Three P3,000,000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. or services and importation of goods shall nevertheless be subject to the 15% VAT pursuant to

3)WITHHOLDING TAX.

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 PSHF LIGHTHOUSE LEARNING CENTER, INC.shall be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation income subject

Section 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. makes income payments to individuals or corporations subject to the withholding tax pursuant to

TAXPAYER DUTIES & RESPONSIBILITIES

1)PSHF LIGHTHOUSE LEARNING CENTER,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

sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to 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 Balance Sheet with the Annual Information Return under oath, stating its gross income and.

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 it 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 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).

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.

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