BIR Ruling No. 786-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT'OF FINANCE BUREAU OF (NTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

07862019

CERTIFICATEOFTAXEXEMPTON

issued to

MANILA CATHEDRAL COLLEGE.INC 287 Tayuman Street, Brgy. 232 Zone 21 Tondo, Manila 1012

SEC Company Reg. No. TIN: 00 -000

This certifies that the above-named corporation 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(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the following revenues or receipts:

1. Tuition fees and other school fees; and 2 In come derived from the operation of cafeterias/canteens, dormitories and bookstores located within its premises, owned and operated by MANILA CATHEDRAI

COLLEGE, INC., to be actually, directly and exclusively used for educational purposes.

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 sha. d from the date of issuance until revoked by this Office for violation of any provisi ns or le rules and regulations of the BIR, or the terms and conditions herein set forth. "t shall likewise be revoked if there are material changes in the character, purpose or methoc. of operation of the corporation which are inconsistent with the basis for its income tax exem .

documents as I spres that the facts at e d: erent, then This C rtificate of T tod and Exemption :.- being issued on the basis of the facts and mitte S Certifi vever, if upon investigation, the BIR ascertains Shall be considered null and void.

Issued + ni tyo DC

a3anry

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY 031321

Page 2 of 3 Manila Cathedral College, Inc. CTE No. Date issued_DEC 1 3 2U19 0756-2019

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

l) INCOME TAX.MANILA CATHEDRAL COLLEGE,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 following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

MANILA CATHEDRAL COLLEGE. INC.'s interest income from currency bank 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%i 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 the conditions that as a tax-exempt educ Office concerned an an. Tormation return and duly audited financial statement together with 1 institution it shall on an annual basis submit to the Revenue District

the following:

(a)Certification from their opository banks as to the amount of interest income

and 15% tax on interest i.. On e under the expanded foreign currency deposit system imposed by Section 7 (D) (1) of the National Internal Revenue Code earned from passive inves ne nt not subject to the 20% final withholding tax

O of 1997, as amended;

)Certification of actual utilizati on of the said income: and

o)Board Resolution by the school administration on proposed projects (i.e.. onstruction and/or improvement of school buildings and facilities, acquisition Of equipment, books and the like) to be funded out of the money deposited in Danks or placed in money markets, on or before the 1 5th day of the fourth month . lowing the end of its taxable year (Sec. 4, Finance Department Order No.

2 VALUF operations 109(1)(H 3'-87 D Js S R NRC TA n- stock. AT) ON EDUCATIONAL SERVICES. Pursuant to Section NILA CATHEDRAL COLLEGE.INC.'s gross receipts from i-profit educational institution is exempt from VAT. Moreover

revenues bookstore exempt fro. deriv ta Ioc rem assc w ithin th ap rovide d in the operation of cafeterias/canteens, dormitories and nises of MANILA CATHEDRAL COLLEGE.INC. are are owned and operated by it as ancillary activities.

LIABILITYFGRI R ALRE NUE TAXES

1)INCOME A

income/receipts/revenues not expressiy exempted and stated in the Certificate of Tax MANILA CATHEDRALCOLLEGEINC.is subject to income tax on all its

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

Page 3 of 3 Manila Cathedral College, Inc. Date issued DEC 1 3 20i9 CTE No. 0786-2019

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

NIRC, 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 edacational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If MANILA CATHEDRAL COLLEGE, 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 NIRC.

WITHHOLDING TAX

MANILA CATHEDRAL COLLEGE, 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 NIRC, 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 NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) MANILA CATHEDRAL COLLEGE,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 incur in its Iaws, Articles of Incorporation, manner of operation and activities as well as sources and -uring the prect ding period and a certificate showing that there has not been any change

dispo n of income. Copy of this Certificate of Tax Exemption shall be attached to the aforer ioned Annual Information Return.

Unde. existing ti on 235 of the National Internal Revenue Code of 1997, as amended, any provision of n ral and special law to the contrary notwithstanding, the books of accounts and other

pertinent ec ords of tax-exempt organization or grantees of tax incentives shall be subject to examina ( the BIR for purposes of ascertaining compliance with the conditions under which it has be. gT I tax e. tions or tax incentives, and its tax liabilities, if any.

3 Further, it is al required ler Section 6(C) in relation to Section 237 of the National Internal

Revenue Coc f 1997, a nerded, to issue duly registered receipts or sales or commerciai

related to invoices 0 vities for w sale or tr. f merchandise or for services rendered which are not directly ie Association is registered. (Revenue Memorandum Circular No. [RM. O - 2.003).

4)Finally,it is (B) of the Nat t o the payment of registration fee of PhP 500.00 as prescribed in Section 236 I ernal Revenue Code of 1997, as amended.

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective ary 1.2018