BIR Ruling No. 698-2019

REP JBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

T5842159

CERTIFICATE.OF TAX EXEMPTON

issued to

SECULAR INSTITUTE MADONNA DELLA STRADA (VISAYAS), INC. SEC Company Reg. No. Remigio Street. Pavia. Iloiio 5001 TN:

and has proven by actual operation that ins primary purpose falls under Section 30 (E) of the Nationai Internal Revenue Code (NIRC) of 1997, as amended. It is exempt from INCOME TAX only on the following revenues or receipts: This certifies that the above-named corporation is a non-stock, non-profit corporation

1. Donations and Contributions.

nothing follow

integral part hereof. It is liable, howev er, to all other taxes not enumerated above. subject te the provisions of applicatle BIR rules and regulations and the tax exemptions. tiabiiities and responsibilities stated in the Terms and Conditions hereto attached and made an

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 vaiid for three (3) years from the date of issuance unless

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

that the facts are different, then this Certificate shall be considered null and void. Jocuments as represented and submitted. However, if upon investigation, the BIR aseertains This Certificate of Tax Exeniption is being issued on the basis of the facts and

Issued this day of ro s

AaucMw

H-I-JAC Commissioner of Internal Revenue CAESAR R. DULAY 030 513

:

Secuiar Institute Madonna Della Strada Visayas), Inc. Page 2 of 3 Date issued NOV ? 5 Ay CTE No 1633-1315

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INCOME TAX. SECULAR INSTITUTE. MADONNA DELLA STRADA

(VISAYAS).INC. is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exernptions enumerated herein. the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

SECULAR INSTITUTE MADONNA DELLA STRADA (VISAYAS), INC. is Subje2U 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 income derived from any of its prcperties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation.

Likewise, interest income from curreney bank deposits and yield or any other monetary benefits from deposit substitute insiruments 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

to Sec.'57(A) both of the National Internal Revenue Code of 1997, as amended. fifteen percent (15%)' final withholding income tax pursuant to Section 27(D)(1) in reiation depository bank under the expanded foreign currency deposit system shall be subject to

2) VALUE ADDED TAX/PERCENTAGE TAX

If SECULAR INSTITUTE MADONNA DELLA STRADA_VISAYAS).INC. is engaged in the sale of goods or services in the course of a business pursuit, inciuding transactions incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000.000.00)2, or to the 3% percentage tax, if gross receipts do not exceed P3.000.000.00.

Notwithstanding that it is a non-s:ock, non-profit corporation, its purchase of goods or properties or services and importation of go5ds shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX

SECULAR INSTITUTE MADONNA DELLA STRADA (VISAYAS),INC. shall be constitured as withholding agent for the government if it acts as an employer and its employees receive compensation income subiect to the withholding tax under Section 79 (A), Chapter XIII, Title HI of the National Internal Revenue Code of 1997, as amended, as impiemented by Revenue Regulaions No. 2-98, as amended, or if it makes income

57 of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended. payments to individuals or corporations subject to the withholding tax pursuant to Section

IRepublic Act No. 10963 increased the tax rate fr m 7.595 Io 15% effective January i, 2018.

Page 3 of 3 Eecular Insitute Madonna Della Strada (Visayas), Inc. CTENo. 0 & 9 9 - 2 3 1.5 Date issuedNO1? 52110

TAXPAYER'S DUTIES & RESPONSIBILITIES

SECULAR INSTITUTE MADONNA DELLA STRADA (VISAYAS), 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 Information Return

under oath, stating its gross income and expenses incurred during the preceding period and

a certificate showing that there kas 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 shail be 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 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 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

.Internai Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial 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 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.