BIR Ruling No. 422-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE Quezon City

PP Certificate of Tax Exemption No.

1FP-2017

CERTIFICATE OF TAX EXEMPTION

issued to

MELCO CROWN PHILIPPINES FOUNDATION CORPORATION

Aseana Ave. cor. Roxas Blvd., Tambo, City of Paranaque SEC Company Reg. No. TIN:

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

Nationai Internal Revenue Code of 1997. as amended. It is exempt from INCOMF 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:

I. 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 enumerated 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 herein set forth.

provided under Revenue Memorandum Order (RM0) No. 20-2013. Failure to renew this This Certificate may be renewed upon filing of a subsequent application for revalidation

Certificate shall be deemed a revocation thereof upon the expiration of the three (3)-year period.

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

Issued this day of L

K - Commissioner of Internal Revenue CAESAR R. DULAY

CeLiA C.KiNg cu c.h

Deputy Commissioner

tGrcu

Page 2 of 3 Melco Crown Philippines Foundation Corporation, Inc. CTE No Datc issucd ...r...

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX. MELCO CROWN PHILIPPINES FOUNDATION CORPORATION 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.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

MELCO CROWN PHILIPPINES FOUNDATION CORPORATION is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate

imposed under the NIRC on its income derived from any of its properties. real or personal. should be returned for taxation. of Tax Exemption. Moreover. it is subject to the corresponding internal revenue taxes or any activity conducted for profit regardless of the disposition thereof. which income

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 scven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27(D)(1) in relation to Sec. 57(A) both of the NIRC. (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

2) VALUE ADDED TAX

1f MELCO CROWN PHILIPPINES FOUNDATION CORPORATION is engagcd in thc sale of goods or services in the course of a business pursuit. including transactions incidental thereto. in general. it shall be liable for VAT on the revenues derived therefrom.

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

3) WITHHOLDING TAX

compensation income subject to the withholding tax under Section 79 (A). Chapter XIII withholding agent for the government if it acts as an employer and its employees receive it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC. as implemented by Revenuc Regulations No. 2-98. as Titie H1 of the NIRC. as implemented by Revenue Regulations No. 2-98. as amended, or if amended. MELCO CROWN PHILIPPINES FOUNDATION CORPORATION shall be constituted as

Melco Crown Philippines Foundation Corporation, Inc. Page 3 of 3 CTE No. Date issued 9-4-2017 422-2017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) MELCO CROWN PHILIPPINES FOUNDATION CORPORATION is required to fHe on

or before the 15th day of the fourth month foilowing the end of the accounting period a oath. stating its gross income and expenses incurred during the preceding period and a Profit and Loss Statement and Balance Sheet with the Annual Information Return under 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 ot income. Copy of this Certifieate of Tax Exemption shall be attached to the aforemcntioncd Annual Information Return.

2) Under Section 235 of the NIRC, any provision of cxisting general and special law to the contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt tax exemptions or tax incentives, and its tax liabilities. if any. organization or grantees of tax incentives shall be subject to examination by thc BiR for purposes of ascertaining compliance with the conditions under which it has been granted

3) 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 2003 merchandisc or for services rendered which are not directly related to thc activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76.

4 Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in

Scction 236(B of the NiRC.