BIR Ruling No. 622-2019

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

622019

CERTIFICATTE OF TAX EXEMPTON

issued to

PHHLIPPINE BAPTIST S.B.C. INC. No. 24 Kanlaon Street, Brgy. Sta. Teresita, 1114 Quezon City

SEC Company Reg. No. TIN:

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

has proven by actual operaticn that its prinr.ary purpo:e falls under Section 30 (E) of the National

Intermal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the

following revenues or receipts:

1. Donations.

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 erumerated above.

This certification shall be valid for three (3) years from the date of issuance unless earlier revoked by this Office for violation of any provisions of applicable rules and regulations of BIR. or the terms and conditions hereir: set forth.

This Certificate may be renewed upon filing of a subsequent application for revalidation 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 of Tax Exemption :s 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 OCT 1 6 2019

CAESAR R. DULAY Commissioner of Internal Revenue

K-1-MDT 029848

Philippine Baptist S.B.C. Inc. Page 2 of 3 Date issued 0622+2019 0c 1 6 2019

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1)INCOME TAX. PHILIPPINE BAPTIST S.B.C. 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 -exemptions enumerated herein, the

association/corporation/ organization must continue to meet the requirements set forth

under Revenue Memorandum Order No. 20-2013.

LIABHLITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

PHILIPPINEBAPTIST S.B.C. INC. is subject to income tax on all its income/receipts/revenues not expressly exempted ana stated in the Certificate of Tax Exemption. Moreover, it is subject to the corresponding internial revenue taxes imposed under the National Internal Revenue Code of 1997, as amended 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 returned for taxation.

Likewise, interest income from currency bank deposits and yieid or any other monetary

benefits from deposit substitute instruments arid 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 amended.

2) VALUE: ADDED TAX/PERCENTAGE TAX .

If PHILIPPINE BAPTIST S.B.C. 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-stock, non-profit cor:oration, its purchase of goods or

properties or services and importation of goods shall inevertheless 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

PHILIPPINE BAPTIST S.B.C. INC. shall be constituted as withhoiding 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 XIII, Title fI of the NIRC, as implemented by Revenue Regulations No. 2-98" as amended," or if it makes ihcome payments to individuals or corporations subject to the withholding 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.

'Republic Aet No. 10963 increased the tax rate from 7.5% to 15% effective January 1, 2018. 2Republic Act No. 10963 increased the VAT. threshoid from P1,919,500.00 to P3,000,000.00 effective January 1, 2018.

Philippine Baptist S.B.C. Inc. Page 3 of 3 Date issued 62 Dc 62 s

TAXPAYER'S DUTIES & RESPONSIBILITIES

1} PHLIPPINE BAPTIST S.B.C. 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 unda : oath, stating its gross income and

expenses incurred during the preceding period and a certificate showing that there has not been any change in its By-laws, Articles of Incorporation, manner of operation and activities as weil 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 provision of existing general and special law to the contrary notwithstanding, the books of compliance with the conditions under which it has, been granted tax exemptions or tax 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 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

Internal 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.

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