BIR Ruling No. 436-2017

REPUBLIC OF THE PHILIPPINES 1

DEPARTMENT OF FINANCE BUREAUOF INTERNAL REVENUE

Certificate of Tax Exemption No. 1 6-2017

CERTIFICATE OF TAX EXEMPTION

issued to

CRONASIA FOUNDATION COLLEGE, INC 1245 Andres-Dizon Building Nuestra Senora Dela Paz St. SEC Company Reg. No. TIN General Santos City

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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 oniy on the fofiowing revenues or reccipts:

1. Tuition Fees; and 2. Income derived from the operation of cafeterias/canteens and bookstores

within its premises, owned and operated by Cronasia Foundation College, Inc.. which income is to be actually, directly and exelusively 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 shall be valid from the date of issuance until revoked by this Office for 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 character. purpose or method of operation of thc corporation which arc inconsistent with the basis for its income tax exemption.

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 (ertificate shall be considered null and void.

Issued this day of w

Commissioner of Internal Revenue CAESAR R. DULAY

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Cronasia Foundation College, Inc Page 2 of 3 CTE No. Date issued - 436- :0 :7

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX.CRONASIA FOUNDATION COLLEGE,INC is exempt from the payment of incomc 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 Revenuc Memorandum Order (RMO) No 44-2016. to wit:

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

audited financial statement together with the following: Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended. suhject to compliance with the conditions that as a tax-exempl educational institution it shafl on an annua! basis submit to the Revenue District Office concerned an annual information return and duly CRONASIA FOUNDATION COLLEGE,INC intercst income from currency bank deposits and yieid from deposit substitute instruments used actually. directly ant 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 thc expanded foreign currency deposit system imposed under

(a)Certification from their depository banks as to the amount of interest income and 7 1/2% tax on interest incomc under the expanded foreign currency deposit system imposed by Section 27 (D) (1) of the Nationat Internal Revenuc Code of 1997. as amended: earned from passive investment nol subject to the 20% final withholding lax

(b)Certification of actual utilization of the said income: and

banks or placed in money markets. on or before the I Sth day of the fourth month (c)Board Resolution by the school administration on proposed proiccts (i.e. of equipment. books and the like) to be funded out of the money deposited in following the end of its taxable year (Sec. 4. Finance Department Order No) construction and/or improvement of school bui!dings and facititics. acquisition 137-87}

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(H) of the NIRC,CRONASIA FOUNDATION COLLEGE, INC gross receipts from operations as a non-stock, non-profit educational institution are exempt from VA'r.

LIABILITY FOR INTERNAL REVENUE TAXES

I) INCOME TAX

income/reccipts/revenues not expressly exempted and stated in the Certificate of Tax CRONASIA FOUNDATlON COLLEGE, INC is subject to income tax on all its

' Department Order No. 149-95 dated Novenrber 24. 1995 amending Department Order No. 137-87

Cronasia Foundation College, Inc Page 3 of 3 Date issued9-c--0 +? CTE NO. 432C 1*

actually. directly and exclusively used for educational purposes. 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. untess said revenues are Exemption. Moreover. it is subject to the corresponding internal revenue taxes imposed under

2) VALUE ADDED TAX

the course of a husiness pursuit, including transactions incidental thereto. in general. it shafl be Iiable for V AT on the revenues derived therefrom. 1f CRONASIA FOUNDATION COLLEGE,INC is cngaged in the salc of goods or services in

Notwithstanding that it is a non-stock, non-profit corporation. its purchase of goods or properties Scctions 106 and 107 of the NIRC. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3.WITHHOLDING TAX

by Revenue Regulations No. 2-98. as amended. corporations subject to the withhoiding tax pursuant to Section 57 of the NIRC. and as implemented government if it acts as an employer and its employees receive compensation income subject to the withholding tax under Section 79 (A), Chapter XII. Title II of the NIRC. as implemented by Revenue Regulations No. 2-98. as amended. or if it makes income payments to individuals or CRONASIA FOUNDATION COLLEGE, INC shall be constituted as withhoiding agent for thc

TAXPAYER DUTIES & RESPONSIBILITIES 1) CRONASIA FOUNDATION COLLEGE,INC is required to file on or before thc 15th day of the aforementioned Annual Information Return. Sources and disposition of income. Copy of this Certificate of Tax Exemption shall be attached to expenses incurred during the preceding period and a certificate show ing that there has not been any change in its By-laws. Articles of Incorporation. manner of operation and activities as well as the fourth month following the end of the accounting period a Profit and toss Statement and Balance Sheet with the Annual Information Return under oath. stating its gross income and

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internat 2) Under Section 235 of the National Internal Revenue Code of 1997. as amended. any provision of' No. [RMC] No. 76-2003). 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 directiy related to the activities for which the Association is registered. (Revenue Memorandum Circular it has been granted tax exemptions or tax incentives. and its tax liabilitics. if any. pcrtinent records of tax-exempt organization or grantecs of tax incentives shall be subject to examination by the BIR for purposes of ascertaining compliance with the conditions under which cxisting general and special law to the contrary notwithstanding, the books of accounts and other

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.