BIR Ruling No. 45-2018

REPUBLIC OF THE PHILIPPINES

DEPARTMENTOF FINANCE BUREAU OFINTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

045-2018

CERTIFICATE OF TAX EXEMPTION

issued to

GLORIOUS HOPE ACADEMY OF GAPAN CITY,INC.

Maharlika Highway, Sto.Cristo Sur, Gapan City,Nueva Ecija 3 105

TIN: SEC Company Reg. No.

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

INCOME TAX only on the following revenues or receipts: Section 30(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from

1.Tuition and Other school fees; 2. Income -derived from the operation of cafeterias/canteens and bookstores

ACADEMY OF GAPAN CITY,INC. to be actually directIy and exclusively located within its premises, owned and operated by GLORIOUS HOPE

used for educational purposes.

nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject to the provisions of applicable BIR rules and regulations and the tax exemptions,

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 basis for its income tax exemption. This certification shall be valid from the date of issuance until revoked by this Office

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

Issued this day ofJAN 2 4 2018

Commissioner of Internal Revenue CAESAR R.DULAY

K-1-JAC K1-FR-16-1559 Deputy Commissioner CELIA C.KING Cla C.]

Glorious Hope Academy of Gapan City, Inc. CTE No.045-2018 Date issued 1-24-2018 Page 2 of 3

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.GLORIOUS HOPE ACADEMY OF GAPAN CITY,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:

It is a non-stock, non-profit educational institution; and

Hi.Its revenues are actually, directly and exclusively used for educational purposes.

GLORIOUS HOPE ACADEMY OF GAPAN CITY,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 7 1/2%

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 educational institution it shall on an annual basis submit to the

Revenue District Office 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

earned from passive investment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign.currency deposit

system 'imposed by Section 27 (D) (1) 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 1 5th 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,GLORIOUS HOPE ACADEMY OF GAPAN CITY,INC.'s gross

-receipts from operations as a non-stock, non-profit educational institution are exempt from VAT.

LIABILITY.FOR INTERNALREVENUE TAXES

1 INCOME TAX W

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

Glorious Hope Academy of Gapan City, Inc. Page 3 of 3 CTE No.4-2018 Date issued1-2-2018

GLORIOUS HOPE ACADEMY OF GAPAN CITY,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 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 educational purposes.

2) VALUE ADDED TAX

If GLORIOUS HOPE ACADEMYOF GAPAN CITY,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 VAT on the revenues derived therefrom.

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

GLORIOUS HOPE ACADEMY OF GAPAN CITY,INC.shall be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation income

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 subject to the withholding tax under Section 79 (A), Chapter XIII; Title II of the NIRC, as

as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1 GLORIOUS HOPE ACADEMY OF GAPAN CITY, INC. is required to file on or before the

and Balance Sheet with the Annual Information Return under oath, stating its gross income and 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 showing that there has not been any change in its By-laws, Articles of Incorporation, manner of operation and activities as well as the aforementioned Annual Information Return. 15th day of the fourth month following the end of the accounting period a Profit and Loss Statement

2)Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision of existing general and special law to the contrary notwithstanding, the books of accounts and other 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. 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 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) Revenue Code of 1997,.as amended, to issue duly registered receipts or sales or commercial

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. C