BIR Ruling No. 427-2016

R.U3LICOF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

427-2016

CERTIFICATE OF TAX EXEMPTION

issued to

JOSE JON TIAM SUY FOUNDATION, INC.

4/F ATM Business Center, Jalandoni-Ledesma Sts. Iloilo City

TIN 401-807-497-000 SEC Company Reg. No. CN201029395

This certifies that the above-named entity 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 (E) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME

TAX only on the following revenues or receipts:

1. Donations.

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.

This certification shall be valid for three (3) years from the date of issuance unless

earlier revoked by this Office for violation of any provisions of applicable rules and regulations

of BIR, or the terms and conditions herein set forth.

This Certificate may be renewed upon filing of a subsequent application for revalidation

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year

period.

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 DEC 1 4 2Gi6

1aan

Commissioner of Internal Revenue CAESAR R. DULAY 002523

Jose Jon Tiam Suy Foundation Inc. Page 2 of 3 Date Issued: _12-14-2016 CTE No. 427-2017

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTIONS

1) INCOME TAX.

JOSE JON TIAM SUY FOUNDATION,INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption provided, that no part of its net income or asset shall belong to, or inure to the benefit of any member, organizer, officer or any specific person.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

JOSE JON TIAM SUY FOUNDATION, INC. 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 the 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 regardless of the

disposition thereof, which income should be returned for taxation.

Likewise, interest income from currency bank deposits and yield or any other monetary

benefits from deposit substitute instruments and from trust funds and similar arrangements,

and royalties derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a

depository bank under the expanded foreign currency deposit system shall be subject to

seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the Nationai Internal Revenue Code of 1997, as

amended.

2) VALUE-ADDED TAX

If JOSE JON TIAM SUY FOUNDATION, INC, is engaged in the sale of goods or

services in the course of a business pursuit, including transactions incidental thereto, in

general, it shall be liable for value-added tax on the revenues derived therefrom.

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%

value-added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code

of 1997, as amended.

Jose Jon Tiam Suy Foundation Inc Page 3 of 3 CTE No. Date Issued: 12-14-2016 42-2017

3) WITHHOLDING TAX

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

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) JOSE JON TIAM SUY 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

compliance with the conditions under which it has been granted tax exemptions or tax 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 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 corporation is registered. (Revenue

Memorandum Circular No. [RMC] No. 76-2003).

4) Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.