BIR Ruling No. 496-2020

REPUBLICOFTHE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Certificate of Tax Exemption No

SH30-0496-2020

CERTIFICATE OF TAX EXEMPTION

issued to

BRIGHTWOODS EDUCATIONAL VENTURES, INC.

Don Angel St., Angeles Citicenter Subd., Phasc I, Pandan, Angeles City

TIN SEC Company Reg. No.

This certifies that the above-named corporation is a non-stock, non-profit corporation and

has proven hy actual operation that its primary purpose is one of those enumerated under Section 30(f1) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOMI:

TAX only on the following revenues or receipts:

L.Tuition and Miscellancous Fecs; and 2. Income derived from the operation of cafeterias/canteens, dormitories and

bookstores located within its premises, owned and operated by BRIGHTWOODS

EDUCATIONAL VENTURES,INC, to be actually, directly and exclusively used for

educational purposcs.

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 SEP 0 8_2020

Mausatem

CAESAR R.DULAY Commissioner of Internal Revenuc K-

Operating under the name of BRIGWOODS SCHOOL

SHB0-0496-2020

BRIGHTWOODS EDUCATIONAL YENTURES, INC. CTE No. Datc issued SEP-0 8 2020

Page 2 of 3

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

For Non-Stock, Non-Profit Educational Institution

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended

TAX EXEMPTION

INCOME TAX.

BRIGHTWOODS EDUCATIONAL VENTURES.INC. is exempt from the payment of

income tax only on revenues and receipts cnumerated on the Certificate of Tax

Exemption. It is understood that the school must continue to meet the following

requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit:

It is a non-stock, non-profit educational institution; and

Its revenues are actually, directly and exclusively used for educational purposes. I

BRIGHTWOODS EDUCATIONAL VENTURES.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%% tax under ihe 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 Revenuc District Office concerned an annual information

return and duly audited financial statement together with the following:

Certification from their depository bank as to the amount of interest income

carned from passive investment not subject to the 20%-final withholding tax

and 15% tax on interest income under the expanded foreign currency

deposit system imposed by Section 27(D)(1) of the National Internal

Revenue Code of 1997. as amended.

b Certification of actual utilization of the said income; and

Board Resolution by the school administration on proposed projects (i.e.,

c

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)3.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.

Pursuant to Section 109(1)(H) of the National Internal Revenue Code of 1997. as

amended, BRIGHTWOODS EDUCATIONAL VENTURES, INC.'s, gross receipts from

.operations as a non-stock, non-profit educational 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 BRIGHTWOODS

EDUCATIONAL VENTURES, INC. are exempt from taxation provided they are owned

and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOMETAX

BRIGHTWOODS EDUCATIONAL VENTURES, 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 revenuc taxes

imposed under National Internal Revenue Code of 1997,as amended, on its income

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018

Department Order No.149-95 dated November24,1995 amending Department Order No.137-87

BRIGHTWOODS EDUCATIONAL VENTURES, INC. Page 3 of 3 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 exelusively used for educational purposes. CTE NO. Date issued SHo0-3L 6 -2020. 20

2) VALUE ADDED TAX/PERCENTAGE TAX receipts from such sales exceed Threc Million Pesos (P3,000,000.00)4, or to the 3% If BRIGHTWOODS EDUCATIONAL VENTURES.INC. is engaged in the sale of percentage tax, if gross receipts do not exceed P3,000,000.00. thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross goods or services in the course of a business pursuit, including transactions incidental

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or amended. VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as properties or services and importation of goods shall nevertheless be subject to the 12%

3) WITHHOLDING TAX Revenuc Regulations No. 2-98, as amended, or if it makes income payments to National Internal Revenuc Code of 1997, as amended, and as implemented by Revenue withhoiding agent for the government if it acts as an employer and its employees receive compensation income subicct to the withholding tax under Section 79 (A), Chapter XIII) individuals or corporations subject to the withholding tax pursuant to Section 57 of the BRIGHTWOODS EDUCATIONAL VENTURES, INC. shall bc constituted as Title II of the National Internal Revenue Code of 1997, as amended, as implemented by Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES 1) BRIGHTWOODS EDUCATIONAL VENTURES,INC., is required to filc on or before stating is gross income and expenses incurred during the preceding period and a Incorporation, manner of operation and activities as well as sources and disposition of incomc. Copy of this Certificate of Tax Exemption shall be attached to the Loss Statenent and Balance Sheet with the Annual Information Return under oath. certificate showing that there has not been any change in its By-laws, Articles of aforementioned Annual Information Return. the 15th day of the fourth month following the end of the accounting period a Profit and

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 incentives, and its tax liabilities, if any. provision of existing general and special law to the contrary hotwithstanding, the books of accounts and other pertincnt records of tax-exempt organization or grantees of tax incentives shall be subject to examination by the BIR for purposes of ascertaining

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

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.

4 Republic Act No.10963 increased the VAT threshold from P1,919.500.00 to P3,000,000.00 effective Jan. 2018