BIR Ruling No. 450-2018

BUREAU OF INTERNAL REVENUE REPUBLICO-THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No.

450-2018

CERTIFICATE OF TAX EXEMPTION

issued to

DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA Poblacion, Lakewood. Zamboanga del Sur PUSAHA,INCORPORATED SEC Reg. No. TIN

proven by actual operation that its primary purpose is one of those enumerated under Section 30 (E) 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 entity is a non-stock, non-profit corporation and has

1. 2 Members' contributions; and Donations.

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.

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

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this period. This Certificate may be renewed upon filing of a subsequent application for revalidation

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 ofMAR 12.2018

1ouam

K-1-RFR Commissioner of Internal Revenue CAESAR R.DULAY 014271

DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA PUSAHA.INCORPORATED CTE No. 450~2018

Page 2of3 Date issued 3-12-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTIONS

1 INCOME TAX

income or asset shall belong to, or inure to the benefit of any member, organizer, fficer or receipts enumerated on the Certificate of Tax Exemption provided, that no part of its net INCORPORATED is exempt from the payment of income tax only on revenues and any specific person. DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA PUSAHA

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

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 income should be returned for taxation. INCORPORATED is subject to income tax on all its income/receipts/revenues not personal, or any activity conducted for profit regardless of the disposition thereof, which DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA PUSAHA.

benefits from deposit substitute instruments and from trust funds and similar arrangements, seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internal Revenu!e Code of 1997, as Likewise, interest income from currency bank deposits and yield or any other monetary and royalties derived from sources within the Philippines are subject to 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 amended.

2) VALUE-ADDED TAX/PERCENTAGE TAX

If DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA PUSAHA.

pursuit, including transactions incidental thereto its revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales is One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed P1,919,500.00. INCORPORATED is engaged in the sale of goods or services in the course of a business

of 1997, as amended. 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% value-added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code

Page 3 of 3 DANAO PIGUMPUNGAN SUBANEN GAPU DLUPA PUSAHA, INCORPORATED Date issued CTE No.3=12=18 450-2018

3) WITHHOLDING TAX

DANAO PIGUMPUNGANSUBANENGAPU DLUPA PUSAHA

INCORPORATED 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 National Internal Revenue Code of

1997, as amended, 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 amended, as

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

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) DANAO PIGUMPUNGAN. SUBANEN GAPU DLUPA PUSAHA

INCORPORATED 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 related to the activities for which the corporation 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.