BIR Ruling No. 631-2019

REPUELIC. OF THE PHILIPRINES

DEPARTMENT OF FINANCE BUREAU OY TNTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

0631-205

CERTIFICATE OF TAXEXEMPTION

issued to

MARIA ISABELLE LESCALERFOUNDATIONINC 5/F Rm. 504 National Life Insurance Bldg., 6762 Ayala Avenue, Makati City 1229

SEC Company Reg. No. TIN:

and has proven by actual operation that its primary purpose falls under Section 30 (E) of the National Internal Revenue Code of 1957. as amended. It is exempt from INCOME TAX only This certifies that the above-narmed corporation is a non-stock, non-profit corporation

on the following revenues or receipi's:

I. Donations. nething follows

subiect to the provisions of applicabie BIR ruies and regulations and the tax exemptions. iiabilities 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.

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

This Certificate may be renev'ed upon filing of a subsequent application for revalidation proviaed under Revenue Memoraniam 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 Exempuon is being issued on the basis of the facts and

that the facts are different, then this Certiticate shall be considered null and void. docurnenis as represented and submitt-d. However, if upon investigation, the BIR ascertains

Issued this day of_I I 2013

AauonN

K- I /$p/ + 80075 Cormmissioner of Internal Revenue CAESAR R. DULAY 029827

i

MARIA ISABELLE L.ESCALER FOUNDATION,INC Page 2 of3 Date issued 0Cl 1 7 2U19 CTE No. 0631-2019

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1 INCOME TAX MARIA ISABELLE L.ESCALER FOUNDATION.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 reltuirements set forth under Revenue Memorandum Order No. 20-2013.

LIABILITYFORINTERNALREVENUETAXES

1) INCOME TAX MARIA ISABELLE L.ESCALER FOUNDATION.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 NIRC 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.

to Sec.57(A both of the National Internal Revenue Code of 1997,as amended. 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. fifteen percent (15% final withholding income tax pursuant to Section 27(D)(1 in relation 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

2) VALUE ADDED TAX/PERCENTAGE TAX

If MARIA ISABELLE L.ESCALER FOUNDATION,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 shail be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos 3000,000.00),or to the3% 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 amended. properties or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997,as

3 WITHHOLDING TAX MARIA ISABELLE L. ESCALER FOUNDATIONINC.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

1 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1,2018 Republic Act Nc.10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan.1 2018

MARIA ISABELLE L. ESCALER FOUNDATION, INC. Page 3 of 3 CTENo.331-2(13 Date issued fClT I Zfe

Titie II of the NIRC, as implemerted by Revenue Regulations No. 2-98, as amended, or if ii makes income payments to individuais or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, as implen:ented by Revenue Regulations No. 2-98, as amended

TAXPAYER'SDUTIES & RESPCMSIRLITIES

1) MARIA ISABELLE L. ESCALER FOUNDATION, 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 cf income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return.:

2) Unier Section 235 of the NIRC, any provision of existing general and special iaw to the contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt

purposes of ascertaining compliance vith the conditions under which it has been granted organization or grantees of tax incenuves shall be subject to examination by the BIR for tax exemptions or tax incentives, and its iax liabilities, if any.

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 merchandise or for services renderei 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 PhP500.00 as prescribed in Section 236(B) of the National Internal Re erue Code of 1997, as amended.