BIR Ruling No. 563-2017

2 BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. 363-2017

CERTIFICATE OF TAX EXEMPTION

issued to

CHINESE GENERAL HOSPITAL COLLEGES, INC. 286 Blumentriti, Brgy. 372. Zone 37. Sta. Cruz. Manila SEC Company Reg. No. TIN:

Section 30(H) of the National Internal Revenue Code (NIRC) of 1997, as amended. It is exempt from 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 This certifies that the above-named corporation is a non-stock, non-profit corporation

2. Income derived from the operation of cafeterias/canteens, dormitories and 1. Tuition fees and Other school fees; and bookstores located within its premises, owned and operated by CHINESE GENERAL HOSPITAL COLLEGES, INC., to be actually, directly and exclusively used for educational purposes.

nothing follow. 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 character, purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption. conditions herein set forth. It shall likewise be revoked if there are material changes in the 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 DEC D 6 2017

18ua

K-I-JAC Commissioner of Internal Revenue CAESAR R. DULAY 011511

Page 2 of 3 Chinese General Hospital Colleges, Inc. CTE No. Date issued 33-27 -20

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. CHINESE GENERAL HOSPITAL COLLEGES INC. is cxempt from the forth under Revenue Memorandum Order (RMO) No 44-2016. to wit: payment of income tax oniy 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

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

the conditions that as a tax-exempt educational 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: deposits and yieid 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 7 1/2% tax on interest income 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 CHINESE GENERAL HOSPITAL COLLEGES INC.'s interest income from currency bank

(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: and 7 1/2% tax on interest income under the expanded foreign currency deposit earned from passive investment not subject to the 20% final withholding tax

(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, acguisition

banks or placed in money markets, on or before the 1 5th day of the tourth month following the end of its taxable year (Sec. 4. Finance Department Order No. of equipment. books and the like) to be funded out of the money deposited in 137-87)

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section from operations as a non-stock, non-profit educational institution are exempt from VAT. |09(1)(H) of the NIRC. CHINESE GENERAL HOSPITAL COLLEGES, INC.'s gross receipts

LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

NIRC. as amended, on its income derived from any of its properties. real or personal, or any activity income/receipts/revenues not expressly exempted and stated in the Certificate of Tax CHINESE_GENERAL HOSPITAL COLLEGES, INC. is subject to income taX on all its Exemption. Moreover. it is subject to the corresponding intermal revenue taxes imposed under

Department Order No. 149-95 dated November 24. 1995 amending Denartment Order No. 137-87 M

Page 3 of 3 Chinese General Hospitat Colleges, Inc. Date issued 12-6-2017 CTE No. 563.2017

actually. directly and exclusively used for educational purposes. conducted for profit, which income should be returned for taxation, unless said revenues are

2) VALUE ADDED TAX/PERCENTAGE TAX

the 3% percentage tax, if gross receipts do nol exceed f 1.919.500.00. exceeds One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P 1.919.500.00). or to lf CHINESE GENERAL HOSPITAL COLLEGES, 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 subiect to the 12% VAT, in case the gross receipts from such sales

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. Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or properties

3) WITHHOLDING TAX

to the withholding tax under Section 79 (A), Chapter XI!. 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 Section 57 of the National Internal Revenue Code of 1997, as amended. and as implemented by CHINESE GENERAL HOSPITAL COLLEGES INC.sha| be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation incone subject makes income payments to individuals or corporations subject to the withholding tax pursuant to Revenue Regulations No. 2-98. as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

l) CHINESE GENERAL HOSPITAL COLLEGES,INC. is required to file on or before the 15th 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 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 the aforementioned Annual Information Return. Balance Sheet with the Annual Information Return under oath, stating its gross income and

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 it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. examination by the BIR for purposes of ascertaining compliance with the conditions under which

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Interna related to the activities for which the Association is registered. (Revenue Memorandum Circular 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 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