BIR Ruling No. 470-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No.

470-2018

CERTIFICATE OF TAX EXEMPTION issued to

2/F Mary Bachrach Bldg. cor. 25th & Chicago Sts., Port Area. Manila 1018 NYK-TDG FRIENDSHIP FOUNDATION,INC. 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 and Contributions.

othing follow

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

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 uniess

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

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 ofMAR 13 2018

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NYK-TDG Friendship Foundation, Inc. CTE No. 470-2018 Page 2 of 3 Date issued 3-13-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

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

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

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 NYK-TDG FRIENDSHIP FOUNDATION, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax returned for taxation.

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. Likewise, interest income from currency 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 seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section

2) VALUE ADDED TAX/PERCENTAGE TAX

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

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or VAT pursuant to Sections 106 and 107 of the NIRC. properties or services and importation of goods shall nevertheless be subject to the 12%

3) WITHHOLDING TAX

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 NIRC,as implemented by Revenue Regulations No. 2-98, as amended. or if it makes income 57 of the NIRC.as implemented by Revenue Regulations No.2-98, as amended. NYK-TDG FRIENDSHIP FOUNDATION,INC. shall be constituted as withholding agent payments to individuals or corporations subject to the withholding tax pursuant to Section

NYK-TDG Friendship Foundation, Inc. Page 3 of 3 CTE No. 4702018 Date issued_3*13-2018

TAXPAYER'S DUTIES&RESPONSIBILITIES

NYK-TDG FRIENDSHIP FOUNDATION, 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 expenses incurred during the preceding period and a certificate showing that there has and Balance Sheet with the Annual Information Return under oath, stating its gross income 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 compliance with the conditions under which it has been granted tax exemptions or tax provision of existing general and special law to the contrary notwithstanding. the books of incentives shall be subject to examination by the BIR for purposes of ascertaining incentives, and its tax liabilities, if any. accounts and other pertinent records of tax-exempt organization or grantees of tax

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 Memorandum Circular No. [RMC] No. 76-2003). are not directly related to the activities for which the Association is registered. (Revenue commercial invoices for each sale or transfer of merchandise or for services rendered which

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.