BIR Ruling No. 543-2020

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. S#70-0543-2020

CERTIFICATE OF TAX EXEMPTION

issued to

ASSUMPTA SCHOOL OF TAGUM INCORPORATED SEC Company Reg. No. TIN: Mankilam, Tagum City

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 non-stock, non-profit corporation and

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

SCHOOL OF TAGUM INCORPORATED, to be actually, directly and exclusively bookstores located within its premises, owned and operated by ASSUMPTA used for educational purposes.

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

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 for its income tax exemption. character, purpose or method of operation of the corporation which are inconsistent with the basis This certification shall be valid from the date of issuance until revoked by this Office for

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 documents

Issued this day of SEP 23 2U20

M3a1a

K- Commissioner of Internal Revenue CAESAR R.DULAY 036745

ASSUMPTA SCHOOL OF TAGUM INCORPORATED Page 2 of 3 CTE No.730-05 43 - 20 2 0 Date issued SEP2 3 2U2U

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.ASSUMPTA SCHOOL OF TAGUM INCORPORATED is exempt following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: 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

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

information return and duly audited financial statement together with the following: exempt from the 20% final tax and 15%' tax under the expanded foreign currency deposit 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 Soncerned an annual currency bank deposits and yield from deposit substitute instruments teed actually, directly and exclusively in pursuance of its purpose as an educational Institution, are system imposed under Section 27(D)(1) of the National Internal Reveraie Code of 1997. ASSUMPTA SCHOOL OF TAGUM INCORPORATED's interest ireome from

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 Imternal Revenue Code of 1997, as 15% tax on interest income under the expanded foreign currency deposit system amended. b C equipment, books and the like) to be/funded out of the money deposited in banks or placed in money markets, or/or before the 15th day of the fourth month Board Resolution by the school administration on proposed projects (i.e.. following the end of its taxable/year (Sec. 4, Finance. Department Order No. 137. 8 Certification of actual utilization of the said income; and construction and/or improvement of sckool buildings and facilities, acquisition of

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES. Pursuant to Section bookstores located within the premises of ASSUMPTA SCHOOL OF TAGUM] SCHOOL OF TAGUMINCORPORATED'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 INCORPORATED are exempt from taxation provided they are owned and operated by it as ancillary services. 109(1)(H) of the National Internal-Revenue Code of 1997, as amended, ASSUMPTA

LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

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, of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes ASSUMPTA SCHOOL OF TAGUM INCORPORATED is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate

A

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 Jan. 1,2018

ASSUMPTA SCHOOL OF TAGUM INCORPORATED Page 3 of 3 Date issued SEP Z 3 ZUZ0 CTE No. SH120-05.43-2020

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 ASSUMPTA SCHOOL OF TAGUM INCORPORATED is engaged in the sale of receipts from'such sales exceed Three Million Pesos (P3,000,000.00)3, or to the 3% thereto, its revenues derived therefrom shall be 'subject to the 12% VAT, in case the gross percentage tax, if gross receipts do not exceed P3,000,000.00. goods or services in the course of a business pursuit, including transactions incidental

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as properties or services and importation of goods shall nevertheless be subject to the 12% amended.

3)WITHHOLDING TAX National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. 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 ASSUMPTA SCHOOL OF TAGUM INCORPORATED shall be constituted as

TAXPAYER DUTIES & RESPONSIBILITIES l) ASSUMPTA SCHOOL OF TAGUM INCORPORATED, is required to file on or 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. 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

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 commercial invoices for each sale or transfer of merchandise or for services rendered Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or 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.

Republic Act No.10963 inereased the VAT threshold from P1,919,500.00 to P3.000,000.00 effective Jan.1.2018