BIR Ruling No. 400-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OFINTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

4002017

CERTFICATE OF TAXEXEMPTON

issued to

Climaco Street, Poblacion, Ipil, Zamboanga Sibugay 7002 MARIAN COLLEGE.INC SEC Company Reg. No. TIN:

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: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. 3 4 2 Cafeterias/canteens and bookstores sales located within its premises, owned and Tuition Fees; Miscellaneous and other fees; Donations;

operated by MARIAN COLLEGE,INC.

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

basis for its income tax exemption. 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 the corporation which are inconsistent with the

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

that the facts are different. then this Certificate shall be considered null and void. documents as represented and submitted. However.if upon investigation, the BIR ascertains

Issued this. day ofAUG3 2017

CAESAR R.DULAY

K-1-JAC Commissioner of Internal Revenue

CELIAC.KING CeeaC.a

Deputy Commissioner

Marian College Inc. Page 2 of 3 Date issued CTE No. 400-2017 -2017

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

1) INCOME TAX. MARIAN 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:

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

educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under MARIAN 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 the expanded foreign currency deposit system imposed under Section 27 (D)(1) of the National

tax-exempt educational institution it shall on an annual basis submit to the Revenue District Office Internal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a

concerned an annual information return and duly audited financial statement together with the following:

(a)Certification from their depository banks as to the amount of interest income and 7 1/2% tax on interest income under the expanded foreign currency deposit earned from passive investment not subject to the 20% final withholding tax system imposed by Section 27 (D) () of the National Internal Revenue Code of 1997, as amended:

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

(c)Board Resolution by the school administration on proposed projects (i.e.. construction and/or improvement of school buildings and facilities, acquisition of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(1(H of the NIRC.MARIAN COLLEGE,INC.'s gross receipts from operations as a non-

stock, non-profit educational institution are exempt from VAT.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

MARIAN COLLEGE,INC.is subject to income tax on all its income/receipts/revenues no expressly exempted an stated in the Certificate of Tax Exemption. Moreover, it is subject to

Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

Marian College, Inc. Page 3 of 3 Date issued 8--30-2017 CTE No.002017

the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived should be returned for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. from any of its properties, real or personal, or any activity conducted for profit, which income

2) VALUE ADDED TAX

the revenues derived therefrom. If MARIAN COLLEGE, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, in general, it shall be liable for V AT on

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

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. 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 MARIAN COLLEGE, INC. shall be constituted as withholding agent for the government if it acts

TAXPAYER DUTIES & RESPONSIBILITIES

1) MARIAN COLLEGE, INC. is required to file on or before the 15th day of the fourth month income. Copy of this Certificate of Tax Exemption shall be attached to thc aforementioned Annual Information Return. 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 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

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. examination by the BIR for purposes of ascertaining compliance with the conditions under which 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

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 No. [RMC] No. 76-2003). 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

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.