BIR Ruling No. 86-2020

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. SH30-018-2020

JAN 2 4 202U

CERTIFICATE OF TAX EXEMPTION

issued to

IFI AGNUS DEI LEARNING CENTER, INC. IFI Compound, Poblacion Opol, Misamis Oriental 9016 SEC Company Reg. No. TIN:

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: This certifies that the above-named corporation is a r: in-stock, non-profit corporation and

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

CENTER, INC., to be actually, directly and exclusively used for educational purposes. located within its premises, owned and operated by IFI AGNUS DEI LEARNING

nothing follows

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.

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

income tax exemption.

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- documents

Issued this day of JAN 2 4 2020

1eecanry

CAESAR R.DULAY Commissioner of Internal Revenue K-1/spf171601 032352

IFI AGNUS DEI LEARNING CENTER, INC Page 2 of 3 CTE No. Date issued JAN 2 4 2020 SH30-018-2020

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

TAX EXEMPTION 1) INCOME TAX. IFI AGNUS DEI LEARNING CENTER, 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 foliowing requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

together with the following: IFI AGNUS DEI LEARNING CENTER, INC.'s interest income from currency bank 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 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)

(a 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 imposed by Section 27(D)(1) of the National Internal Revenue Code of 1997, as 15% tax on interest income under the expanded foreign currency deposit system

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

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 Department Order No. 137- 87 of equipment, books and the like) to be funded out of the money deposited in

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.

Pursuant to Section 109(1)(H) of the National Internal Revenue Code of 1997, as amended, IFI

AGNUS DEI LEARNING CENTER, INC.'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 IFI AGNUS DEI LEARNING CENTER, INC. are exempt from taxation

provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX IFI AGNUS DEI LEARNING CENTER,INC. is subject to income tax on all its

income/receipts/revenues not expressly exempted ana stated in the Certificate of Tax

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018

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

IFI AGNUS DEI LEARNING CENTER, INC. Page 3 of 3 CTE No. Date issued SH30-0182020 JAN 2 4 2020

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.

2) VALUE ADDED TAX/PERCENTAGE TAX

If IFI AGNUS DEI 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 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 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

IFI AGNUS DEI LEARNING CENTER, INC. shall b.- 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 1997, as

amended, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) IFI AGNUS DEI 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

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 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 P3,000,000.00effective Jan.1

2018