BIR Ruling No. 577-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

:

CERTIFICATE OF TAX EXEMPTION

issued to

UNIVERSITY OF SAINT LOUIS TUGUEGARAO, INC

Mabini St., Tuguegarao City, Cagayan

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:

1. Tuition fees and Other school fees; 2. Income derived from the operation of cafeterias/canteens, dormitories and

bookstores located within its premises, owned and operated by UNIVERSITY OF SAINT LOUIS TUGUEGARAO, INC., to be actually, directly and exclusively used for educational purposes.

lothing follow

subject to the provisions of applicable BIR rules and regulations and the tax cxemptions.

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

integral part hereof. It is iiabie, 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 reguiations of the BIR, or the terms and

conditions herein set forth. It shall tikewise be revoked if there are material changes in the

character, purpose or mcthod 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 OEC 0 7 2017

1aeanv

CAESAR R. DULAY

K-1-JAC Commissioner of Internal Revenue 0 11 67 6

Page 2 of 3 University of Saint Louis Tuguegarao, Ine. CTE Nc Date issucd

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION For Non-Stock. Non-Profit Educational Institutior under Section 30(H) of the National Internal Revenue Code of 1997. as Amended

TAX EXEMPTION

1) INCOME TAX. UNIVERSITY OF SAINT LOUIS TUGUEGARAO,INC. is exempt from the

payment of income tax only on revenues and rcceipts enumerated on the Certificate of Tax Exemption. lt is understood that the school must continue to meet the following requisites as ser forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

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

UNIVERSITY OF SAINT LOUIS TUGUEGARAO, INC.'s interest incone 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 7 1/2% tax on interest incorne under the expanded foreign currency deposit system imposed under Scctior 27 (D) (1) of the National Intermal Revenue Code of 1997, as amended, subject to compliance with the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the Revenue District Office concerned an annuai information return and duly audited financial statement together with the following:

(a)Certification from their depository banks as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposcd by Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended:

(b)Certificatiou of actual utilization of the said income; and

(c)Board Resolution by the school administration on proposed projects (i.e. construction and/or inprovement 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 I Sth day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)'.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(iXH) of the NIRC. UNIVERSITY OF SAINT LOUIS TUGUEGARAO, INC.'s gross receipts from operations as a non-stock, non-profit educational institution are cxempt froin V AT

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

UNIVERSITY OF SAINT LOUIS TUGUEGARAO INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

1 Department Order No. 149-95 dated Novemher 24, (995 amending Department Order No. 137-87

University of Saint Louis Tuguegarao, Ine. Page 3 of 3 Date issued _12-7-2017 CTE No. 5-201

Exemption. Moreover. it is subject to the corresponding internal revenue taxes imposed under NIRC, as anended, 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 actually, directly and exclusivcly used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If UNIVERSITY OF SAINT LOUIS TUGUEGARAO INC. is engaged in the sale of goods or Services in the course of a business pursuit. including transactions incidental thereto. its rev enues derived therefrom shall be subject to the 12% VAT. in case the gross reccipts from such sales is One Million Nine Hundred Nineteen T'housand Five Hundred Pesos (f1,919,500.00), or to the 3? 0 percentage tax, if gross receipts do not exceed P1.919.500.00.

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 l06 and 107 of thc NIRC.

3) WITHHOLDING TAX

UNIVERSITY OF SAINT LOUIS TUGUEGARAO,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 XHI, Title H of the NIRC. as implemented by Revenue Regulations No. 2-98, as amended, or if it makes incomc payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC. and as implemented by Revenuc Regulations No. 2-98. as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) UNIVERSITY OF SAINT LOUIS TUGUEGARAO, INC. is required to file on or heforc thc

1 5th day of the fourth month following the end of the accounting period a Profit and I.oss Statement and Balance Shect 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 ang change in its By-laws. Articles of Incorporation, manner of operation and activities as vell as sources and disposition of income. Copy of this Certificate of Tax Exemption shall he attached to the aforementioned Annual Information Return.

2) Under Scction 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 rccords of tax-exempt organization or grantees of tax incentives shall be subicct to examination by the BiR for purposes of ascertaining compliance with the conditions under which it has been granted tax exernptions 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 Interna!

Revenue Code of 1997. as amended, to issue duly registered receipts or sales or commercial invoices for each sate or transfer of merchandise or for services rendered which are not directiy rclated to the activities for which the Association is registered. (Revenuc Memorandum (ircular No. (RMC1 No. 76-2003).

4)Finatly. 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.