BIR Ruling No. 294-2018

REPUBLICOFHE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City.

Certificate of Tax Exemption No.

294-2018

CERTIFICATE OF TAX EXEMPTION

issued to

THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY INC.

1030 Tayuman St., Brgy. 234. Zone 22, Tondo, Manila 1012

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 falls under Section 30 (E) of the

National Internal Revenue Code (NIRC) of 1997, as amended. It is exempt from INCOME

TAX only on the following revenues or receipts:

1. Support, Contributions and Donations.

nothing 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 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 MAR 0 1 2018

ww CAESAR R. DULAY Commissioner of Internal Revenue 013975 K-I-JAC

The Regional Superior of the Missionaries of Charity Inc. Page 2 of 3 CTE No.294-2018 Date issued 3--1-2018

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INCOME TAX. THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY

INC. is only exempt from the payment of income tax on revenues and receipts enumerated

on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions

enumerated herein, the association/corporation/ organization must continue to meet the

requirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY 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 National Internal Revenue Code of 1997, as

amended.

2) VALUE ADDED TAX/PERCENTAGE TAX

If THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY 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%

V AT, in case the gross receipts from such sales exceed One Million Nine Hundred Nineteen

Thousand Five Hundred Pesos (P1,919,500.00), or to the 3% percentage tax, if gross

receipts do not exceed P1,919,500.00.

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

THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY 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 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.

The Regional Superior of the Missionaries of Charity inc. Page 3 of 3 CTE No. 294+2018 Date issued 31w20 18

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) THE REGIONAL SUPERIOR OF THE MISSIONARIES OF CHARITY 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