BIR Ruling No. 307-2021

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHHLIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. 550-37.9

CERTIFICATE OF TAX EXEMPTION

issued to

PHILIPPINE-CHINESE CHARITABLE ASSOCIATION, INC.

1126 Soler Street. Binondo, Manila 1006

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 Nationai Internal Revenue Code of 1997. as amended. It is exempt from INCOME TAX only on the following revenues or receipts:

3 1 Special and General Contribution of Members; Charity and Welfare Fund; Voluntary Membership Fees; 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 tiable. however, to ali other taxes not enumerated above.

This certification shall be valid for three (3) years from the date of issuance unless carlier 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 shali be deemed a revocation thereof upon the expiration of the three (3)-year period.

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. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of .

A0aA

K-I y{-20 Commissioner of Internal Revenue CAESAR R. DULAY 2h

Philippine-Chinese Charitable Associaticn. Inc. Page 2 of 3 Date issued' it i+ (TF No *

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME 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. the payment of income tax on revenues and receipts enumerated on the Certificate of Tax PHILIPPINE-CHINESE CHARITABLE ASSOCIATION, INC. is onty exempt from

LIABILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

regardless of the disposition thereof, which income should be returned for taxation. 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 PHILIPPINE-CHINESE CHARITABLE ASSOCIATION INC is subject to income

Revenues from hospital operations insofar as the paying patients are concerned, are subject to ten (10%) percent corporate income tax pursuant to Section 27(B) of the NIRC. Provided that if the gross income from non-hospital operations exceeds 50% of the total gross income from all sources, the entire taxable income from hospital and non-hospital operations shatl be subject to the 30% regular income tax..

to Sec.'57(A) both of the National Internal Revenue Code of 1997. as amended. (20%) final withholding tax: F'rovided, 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%)2 final withholding income tax pursuant to Section 27(D)(1) in relation 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

2) VALUE ADDED TAX/PERCENTAGE TAX

incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case if PHILIPPINE-CHINESE CHARITABLE ASSOCIATION INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions

dated September 26. 2012 2 Repubiic Act No. 10963 increased the tax rate from 7.5%% to 15% effective Jan. 1. 2018 ' Commissioner of Internal Revenue (BiR) vs. St. 1.uke's Medical (enter. Inc. (.R. Nos.195909 and 195960).

Y

Page 3 of 3 Philippine-Chinese Charitable Association. Ine. Datc isucd it CTE No. 1319

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 National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

PHILIPPINE-CHINESE CHARITABLE ASSOCIATION, INC. shali 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 HI of the Nationa! Internal Revenue Code of 1997, 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 implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) PHILIPPINE-CHINESE CHARITABLE ASSOCIATION INC. is required to file on 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. Articies 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. or before the l5th 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 Iiabilities, if any. 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 provision of existing general and special law to the contrary notwithstanding. the books of

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 reiated 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.

3 Republic Act No. 10963 increased the VAT threshold from P1.919.500.00 to P3.000.000.00 effective Jan. t. 2018