BIR Ruling No. 455-2018

BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

455-2918

CERTIFICATE OF TAX EXEMPTION

issued to

MA-A CHRISTIAN LEARNING CENTER,INC.

Compound 7 Bugac, Brgy. Ma-a, Talomo, Davao City 8000 SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose is one of those enumerated under Section 30(H) of the National Internal Revenue Code 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.Tuition fees and Other school fees; 2 Income derived from operation of cafeterias/canteens, dormitories and

bookstores located within its premises, owned and operated by MA-A CHRISTIAN LEARNING CENTER, INC., to be actually, directly and exclusively used for educational purposes.

-nothing follows

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

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 certification shall be valid from the date of issuance until revoked by this Office

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. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day ofMAR 1 3 2018

1escu1esy

K-1-JAC Comisionrof tnrerga 2ngg CAESAR R.DULAY

Ma-a Christian Learning Center, Inc. CTE No.455-2018 Page 2 of 3 Date issued 3-13-2018

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX.MA-A CHRISTIAN LEARNING CENTER,INC.is exempt from the payment It is understood that the school must continue to meet the following requisites as set forth under of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. Revenue Memorandum Order (RMO) No 44-2016, to wit:

Its revenues are actually, directly and exclusively used for educational purposes. It is a non-stock, non-profit educational institution; and

MA-A CHRISTIAN LEARNING CENTER, INC.'s interest income from currency bank pursuance of its purpose as an educational institution. are exempt from the 20% final tax and 15%' Revenue District Office concerned an annual information return and duly audited financial statement together with the following: deposits and yield from deposit substitute instruments used actually, directly and exclusively in tax on interest income under the 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 educational institution it shall on an annual basis submit to the

(a)Certification from their depository banks as to the amount of interest income earned 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

(c)Board Resolution by the school administration on proposed projects (i.e. 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)2.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section Operations as a non-stock, non-profit educational institution are exempt from VAT. 109(1)(H) of the NIRC, MA-A CHRISTIAN LEARNING CENTER, INC.'s gross receipts from

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX

MA-A CHRISTIAN LEARNING CENTER, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

Deparment Order No.149-95 dated November 24.1995 amending Deparment Order No.137-87. Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective January 1. 2018.

Page 3 of 3 Ma-a Christian Learning Center, Inc. CTE No.4552018 Date issued 3-13-2018

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

NIRC, as amended, on its income 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 exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If MA-A CHRISTIAN LEARNING CENTER, 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 12% VAT, in case the gross receipts from such sales exceed Three

Million Pesos (P3,000,000.00)3. 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 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

MA-A CHRISTIAN LEARNING CENTER, INC. shall be constituted as withholding 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 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 57 of the NIRC, and as implemented

by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1)MA-A CHRISTIAN LEARNING CENTER, 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 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 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.

3 Republic Aet No. 10963 increased the VAT threshold from P1.919.500.00 to P3.0000.00effective January 1, 2018.