BIR Ruling No. 76-2020

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. S-008-2020

CERTIFICATE OF TAX EXEMPTION

issued to

ST.JOSEPH SCHOOL -LA SALLE (BACOLOD),INC. (Formerly: St. Joseph's High School, Inc. [Bacolod City]) Sampaguita St., Brgy Villamonte, Bacolod City 6100 SEC Company Reg. No. TIN:

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 and

3. Income derived from operation of cafeterias/canteens, dormitories and bookstores 1. Donations; 2. Tuition Fees, Miscellaneous Fees; and SALLE (BACOLOD). INC., to be actually, directly and exclusively used for Iocated within its premises, owned and operated by ST. JOSEPH SCHOOL - LA educational purposes.

nothing follows.

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. subject to the provisions of applicable BIR rules and regulations and the tax exemptions, liabilities

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 the corporation which are 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 Certificate shall be considered null and void.

Issued this day of JAN 1 5 2020

eesovae

CAESARR.DULAY

K-1/FR-17-1560 Commissioner of Internal Revenue 032086

ST.JOSEPH SCHOOL-LA SALLE BACOLOD),INC. CTE No. SH-0082025

Page 2 of 3 Date issued IAN 1 6 202

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

ST.JOSEPH SCHOOL -LA SALLE BACOLOD),INC.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:

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

educational purposes.

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% ST.JOSEPH SCHOOL -LA SALLE (BACOLOD), INC.'s interest income from currency

final tax and i5%' tax 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 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 bank as to the amount of interest income earned from passive investment not subject to

the 20% final withholding tax and 15% 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 15th day of the

fourth month following the end of its taxable year (Sec. 4,

Finance Department Order No. 137-87)2.

2. VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES

Pursuant to Section 109(1)(H) of the NIRC, ST. JOSEPH SCHOOL - LA SALLE

(BACOLOD), INC.'s gross receipts from operations as a non-stock, non-profit educational

institution are exempt from VAT. Moreover, revenues derived from assets used in the operation

of cafeterias/canteens, dormitories and bookstores located within the premises of ST. JOSEPH

SCHOOL -LA SALLE (BACOLOD,INC.are exempt from taxation provided they are

owned and operated by it as ancillary services.

C

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1,2018

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

ST.JOSEPH SCHOOL-LA SALLE (BACOLOD,INC. CTE No.OC32020

Page 3 of 3 Date issued lAN 1 6 2020

LIABILITY FOR INTERNAL REVENUE TAXES

1.INCOME TAX ST.JOSEPH SCHOOL-LA SALLE BACOLOD),INC.is subject to income tax on all

its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

NIRC, as amended, on its income derived from any of its properties, real or personal, or any Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

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/PERCENTAGE TAX

If ST.JOSEPH SCHOOL-LA SALLE(BACOLOD),INC.is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its

do not exceed P3,000,000.00. sales exceed Three Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such

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

ST. JOSEPH SCHOOL - LA SALLE (BACOLOD), INC. shall 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 II of the NIRC, 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 NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1. ST. JOSEPH SCHOOL - LA SALLE (BACOLOD), 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 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

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 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 PhP 500.00 as prescribed in Section

236(B) of the National Internal Revenue Code of 1997,as amended.

Republic Act No.10963 increased the VAT threshold from P1.919,500.00 to P3,000,000.00 effective Jan.

2018