BIR Ruling No. 315-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. 315-2017

CERTIFICATE OF TAX EXEMPTION issued to

SEEDS OF DIGNITY MINISTRIES -MINDANAO,INC 35 Mercury Street, GSIS, Matina, Davao City 8000 SEC Company Reg. No. TIN:

National Internal Revenue Code of 1997. as amended. It is exempt from INCOME TAX only and has proven by actual operation that its primary purpose falls under Section 30 (E) of the on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Donations.

nothing follows

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 and responsibilities stated in the Terms and Conditions hereto attached and made an

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 period. provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

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 AUN 1 201?

oay

Commissioner of Internal Revenue CAESAR R.DULAY

K-1-JAC 007120

Seeds of Dignity Ministries - Mindanao, Inc. Page 2 of 3 CTE No Date issued 6-- 14--2017 15-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX.SEEDS OF DIGNITY MINISTRIES -MINDANAO,INC.is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013. Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the

LIABILITY FOR INTERNAL REVENUE TAXES 1 INCOME TAX

returned for taxation. Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under the NIRC on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be SEEDS OF DIGNITY MINISTRIES -MINDANAO,INC.is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

benefits from deposit substitute instruments and from trust funds and similar arrangements. depository bank under the expanded foreign currency deposit system shall be subject to 27(D)(1) in relation to Sec. 57(A) both of the NIRC and royalties derived from sources within the Philippines are subject to the twenty percent seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section Likewise, interest income from currency bank deposits and yield or any other monetary (20%) final withholding tax: Provided, however, that interest income derived by it from a

2) VALUE ADDED TAX

If SEEDS OF DIGNITY MINISTRIES - MINDANAO, 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

pursuant to Section 57 of the NIRC, as implemented by Revenue Regulations No. 2-98, as it makes income payments to individuals or corporations subject to the withholding tax SEEDS OF DIGNITY MINISTRIES_- MINDANAO, 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 amended Title II of the NIRC,as implemented by Revenue Regulations No.2-98,as amended,or if

Seeds of Dignity Ministries - Mindanao, Inc. Page 3 of 3 CTE No. Date issued 6420 52017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) SEEDS OF DIGNITY MINISTRIES - MINDANAO,INC. is required to file on or before Information Return. 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 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

2) Under Section 235 of the NIRC, any provision of existing general and special law to the purposes of ascertaining compliance with the conditions under which it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. 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

3) Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC to which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76- issue duly registered receipts or sales or commercial invoices for each sale or transfer of merchandise or for services rendered which are not directiy related to the activities for 2003)

4) Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIR(