BIR Ruling No. 410-2019

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption 8410-Z086 No.

CERTIFICATE OF TAX EXEMPTION issued to

Brgy. 676, Zone 073. Ermita. Manila 1000 CCT KAIBIGAN MINISTRY, INC. SEC Company Reg. No. 5/F, Joshua Center, 1428 Taft Avenue TIN:

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

2. Donations and contributions. 1. Gifts, grants, endowments;

nothing follows

integral part hereof. It is liable, however, to all other taxes not enumerated above. subject to the provisionis-of applicable BIR rules and regulations and the tax exemptions, liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an

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

period. 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 This Certificate may be renewed upon filing of a subsequent application for revalidation

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

Issued this day of JUL 2 4 2019

UOw CAESAR R. DULAY Commissioner of Internal Revenue 027137

age.2 of 3 ET KAIBIGAN NHINISTRY, INC. Date issued _JUL 2 4 -2019 CTE No. a4t0-z0Es

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INGOME TAX

CCT KAIBIGAN MINISTRY, INC.is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be-entitfed to the tax exemptions .enumerated herein, the association/corporation/ organitation. must continue to meet the requirements set 'forth under Revenue Memorandum Order No. 20-2013.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

CCT KAIBIGAN MINISTRY, 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 revenue taxes imposed under the National Internal Revenue Code of 1997 (NIRC) on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the dispositiof thereof, which income should be returned for taxation.

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 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 CCT KAIiBIGAN MINISTRY, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, its revenues derived therefrom shall be subject to the twelve percent (12%) VAT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00)2, or to the three .percent (3%) percentage tax, if "gross receipts do not exceed Three Million Pesos (P3 000,000.00). 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 106 and 107 of the NIRC.

3) WITHHOLDING TAX

CCT KAIBIGAN MINISTRY, INC. shall be constituted as withholding agent for the

government if it acts as an employer and its employees receive compensation income Subji#t 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 payments to individuals or corporations subject to the withholding tax pursuant to Section

1 Republic Act (RA) No. 10963 increased the Final withholding tax on Income from 7.5% to 15% effective Jamuar: 01, 2018

Republic Act (RA) No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 01, 2018

>Page 3 of 3 CCT KAIBIGAN MINISTRY, INC. Date issued JUL2 4. 2019 CTE No 1 ? o g

57 of the National Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) CCT KAIBIGAN MINISTRY, 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 has 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

provision of existing general and special iaw 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

incentives, and its tax liabilities, if any. compliance with the conditions under which it has been granted tax exemptions or tax

Further, it is also required under Section 6(C) in relation to Section 237 of the NIRC 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)

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.