BIR Ruling No. 716-2019

REPUBLIC CF THE PHILIPPINES

BUREAU CF INTERNAL REVENUE DETARTMENT OF FINANCE

Qxezor City

Certificate of Tax Exernption No.

0715-Z013

CERTFICATE OF TAX EXEMPTION

issued to

890 U.N. Averue, Brgy. 674, Zone 073, Malate, Manila PHLIPPINE EIRLE SOCIETY.INC SEC Company Reg. No. T

National Internal Revenue Code of i99?, as anended. It is exempt from INCOME TAX only on the foilowing revenues or receipts: by actual operation that its primary purpose is one of those enumerated under Section 30 (E) of the This certifies that the above-narfied ertity is a non-stock, non-profit corporation and has proven

2 3 Y Membership fees. Income derived frou Saie of Scriptures; Contributious from any person, corporation, foundation, board or entity; ard

brning follow

suoject to the provisions of applicable BIR ruies 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.

And conditicns herein set forth. this Ofrice for violation of any provisions of applicable rules and regulations of the BIR, or the terms This eertification shall be valid for three (3) years from the date of issuance until revoked by

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

fepresented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then this Certifieate shall be cons.dered nuil and void. This Certificate of Tax Exempticn is teing issued on the basis of the facts and documents as

Issued this day of DEC2S

e

Commissioner of Internal Re: CAESAR R. DULAY 030 7 K-I BKTD K1-FR-19-0134

PHLIP PINE B!SLE SOCIETY INC. Page 2 of 3 CTE Nc.3 - Date issued: I i..

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAXEXEMPTION

D) INCOME TAX.

PHILIPPINE BIBLE_SOCIETY.NC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the association, corporation or organization must continue to meet the requirements set forth ur der Revenue Memorandurm Order No. 20-2013.

LLBILITY FOR INTERNAL REVENUE TAXES

D) INCOME TAX

PHHLIPPINE BIBLE SOCIETY 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 the National Internal Revenue Code of 1997, as amended, on its incoine derived from any of its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxaticn. Thus, income derived from isase of properties, disposal of scrap, investments and other income from non-religious activities is subject to income tax.

Likewise, interest income from curreney bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements, 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 fifteen percent (15%') final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the National Internal Revenue Code of 1997, as anended.

2) VALUE ADDED TAX/PERCENTAGE TAX

SINCE PHILIPPINE BIBLE SOCIETY INC. is engaged in the sale of goods or services in the course of a business pursuit, such as the iease of its properties and sale of scraps, its revenues derived therefrom shall be subject to the 1 2% V AT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00)2, or t the 3% percentage tax, if gross receipts do not exceed F3,000,000.00.

Notwithstanding that it is a non-stock, rion-profit corporation, its purchase of goods or properties cr services and importation of goods shal!'nevertheless be subject to the 12% Value-added tax pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

FHLIPPINE_BIRLE_SOCIETY_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 withiolding tax under Section 79 (A), Chapter XIII, Title HI of the National Internal Revenue.Code of 1997, as amended, as inplementea by Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuals or corporations subject to the withhoiding 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.

2 Republic Acc No. 10953 increastd the VAT threshoic from 1,519,50.0 : 3,000,cO0.00 effective January 1, 2018. ReoubicctNo.1o953 increased the taxrate fro 5% to 15%e rv 1. 2018

PHILIPPINF BIBLE SOCIETY INC. Page 3 of 3 CTE No._O3I6 " 201S Date Issued:DEI g Z ZT3

TAXPAYER'S DUTIES & RESPONSIRILITIES

1) PHLIPPINE BIBLE SOCIETY INC. is reauired to file on or before the 15th day of the fourth

raonth foliowing the end of the accountins period a Profit and Loss Statement and Balance Sheet with the Annual Information Return unter oath. stating its gross income and expenses incurred during the preceding period and a certif eate showing chat there has not been any change in its By- taws, 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 afcrementioner Arnual information Return.

2) Unaer Section 235 of the National Internai 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 cr tax incentives, and its tax liabilities, if any.

3) Further, it is also rsquired under Sextion 6(C) in reiation to Section 237 of the National Internal

Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial irvoices for each sale or transfer of merchanaise or for services rendered which are not directly retated to the activities for which the Coiporation 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 Internial Revenue Code of 1997, as amended.