BIR Ruling No. 295-2018

REPUBLIC OF THE HILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE X

Quezon City

Certificate of Tax Exemption No.

295-2018

CERTIFICATE OF TAX EXEMPTION

issued to

14 Bauhinia Drive, Kasambagan, Cebu City 6000 SEC Company Reg. No. ST.JOSEPH FOUNDATION,INC. TIN:

National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only and has proven by actual operation that its primary purpose falls under Section 30 (G) of the on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. 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.

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 certification shall be valid for three (3) years from the date of issuance unless

provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

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

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K-1-MCUS Commissioner of Internal Revenue CAESAR R. DULAY 013624

St. Josepn r ounauuon inc. Page 2 of 3 Date issued ILIV 312018

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1 INCOME TAX.

ST. JOSEPH FOUNDATION, 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

ST. JOSEPH FOUNDATION, 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 NIRC 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.

benefits from deposit substitute instruments and from trust funds and similar arrangements, and"royalties derived from sources within the Philippines are subject to Likewise, interest income from currency bank deposits and yield or any other monetary.

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 fifteen percent (15%)' final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the NIRC.

2) VALUE ADDED TAX/PERCENTAGE TAX

If ST. JOSEPH FOUNDATION, INC. is engaged in the sale of goods or services in

derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos (3,000,000.00), or to the 3% percentage tax, if gross receipts the course of a business pursuit, including transactions incidental thereto, its revenues do not exceed P3,000,000.00.2

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.

3 WITHHOLDING TAX

ST. JOSEPH FOUNDATION, INC. shall be constituted as withholding agent for the overr nent if it acts as an employer and its employees receive compensation income

Pae 3 of 3 Dt. Josepn f uunuuuon jnc Date issued 312018

TAXPAYER'S DUTIES & RESPONSIBILITIES

1 ST.JOSEPH FOUNDATION,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 NIR@, 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 NIRC 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 PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended