BIR Ruling No. 683-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No. SH30-903-2028

DEC 2 9 2320

CERTIFICATE OF TAX EXEMPTION

issued to

CITE (CENTER FOR INDUSTRIAL TECHNOLOGY

AND ENTERPRISE) TECHNICAL INSTITUTE INC.

San Jose Street, Talamban. Cebu City SEC Company Reg. No. TIN: (

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 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:

Tuition and matriculation fees;

2 Student activities and laboratory fees; and

3 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

located within its premises, owned and operated by CITE (CENTER FOR INDUSTRIAL

TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE, INC., to be actually,

directly and exclusively used for educational purposes.

-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 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_DEC 2 9 202

1aesanrtuy CAESAR R. DULAY Commissioner of Internal Revenue 038672 O

CE(CENTER FORINDUSTRIALTECHNOLOCYANDENTERPRISTECHNICALINSTITUINC CTENJ2020 Page 2 of 3 TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution Date issued-EC 9 2020

TAX EXEMPTION 1 INCOME TAX. to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44- enumerated on the Certificate of Tax Exemption. It is understood that the school must continue CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE, INC. is exempt from the payment of income tax only on revenues and receipts 2016, to wit:

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

CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE, 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 15%f 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

Section 27(D)(1) of the National Internal Revenue Code of 1997, as amended. on interest income under the expanded foreign currency deposit system imposed by from passive investment not subject to the 20% final withholding tax and 15% tax

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 National Internal Revenue Code of 1997, as amended, CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL

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 CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE. INSTITUTE, INC.'s gross receipts from operations as a non-stock, non-profit educational

INC. are exempt from taxation provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES 1INCOME TAX CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL exempted and stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under National Internal Revenue Code of 1997, 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 INSTITUTE, INC. is subject to income tax on all its income/receipts/revenues not expressly actually, directly and exclusively used for educational purposes.

1 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018 2 Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE INC CTE NO! Page 3 of 3 TS'90-5 83- -020

Dateissued DEC 2 3 2020

2)VALUE ADDED TAX/PERCENTAGE TAX If CITE (CENTER FOR INDUSTRIALTECHNOLOGY AND ENTERPRISE) P3000000,or tothe 3%percentageaxif gros receipts doot exeedP3,0000000 or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to business pursuit including transactions incidental thereto, is revenues derived therefrom shall be Subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties TECHINICAL INSTITUTE, INC. is engagedin the sale of goods or services in the course of a Sections 106 and i107 of the National Internal Revenue Code of 1997, as amended.

3 WITHHOLDING TAX

CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL INSTITUTE, 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 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 Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2- individuals or corporations subject to the withholding tax pursuant to Section 57 of the National 98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES 1) CITE (CENTER FOR INDUSTRIAL TECHNOLOGY AND ENTERPRISE) TECHNICAL Information Return under oath, stating its gross income and expenses incurred during the preceding INSTITUTE, 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 period and a certificate showing that there has notbeen 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 shallbe 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 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 Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial

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.

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,00.00 effective Jan. 1, 2018