BIR Ruling No. 275-2018

REPUBLIC OF THEPHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

275.-2018

CERTIFICATE OF TAX EXEMPTION

issued to

GRACE BAPTIST ACADEMY OF TACLOBAN, INC. Banezville II,Fatima Village Tacloban City,Leyte SEC Company Reg. No. TIN

INCOME TAX only on the following revenues or receipts: 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 This certifies that the above-named corporation is a non-stock, non-profit corporation

2 Tuition Fees & Other School Related Fees; and Income derived from the operation of cafeterias/canteens, dormitories. and bookstores located within its premises, owned and operated by Grace Baptist Academy of Tacloban, Inc., to be actually, directly and exclusively used for educational purposes.

nothing foliow.

integral part hereof. It is liable, however, to all other taxes not enumerated above. 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

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and basis for its income tax exemption. 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 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 of FEB 2 7 2018

1e3ay

Commissioner of Internal Revenue CAESAR R.DULAY 013683

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GRACE BAPTIST ACADEMY OF TACLOBAN, INC. Date issued 227..2018 CTE No. 275-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

INCOME TAX

GRACE BAPTIST ACADEMY OF TACLOBAN,INC. is exempt from the payment of income tax only on revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO)No 44-2016.to wit

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

statement together with the following: deposits and yield from deposit substitute instruments used actually, directly and exclusively in pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed under Section Revenue District Office concerned an annual information return and duly audited financial GRACE BAPTIST ACADEMY OF TACLOBAN, INC.'s interest income from currency bank 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 7 1/2% 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. banks or placed in money markets, on or before the i5th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order 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 No.137-87.

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, as amended, GRACE non-profit educational institution are exempt from VAT. BAPTIST ACADEMY OF TACLOBAN, INC.'s groSs receipts from operations as a non-stock,

LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX

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, which income should be returned GRACE BAPTIST ACADEMY OF TACLOBAN,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

Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

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GRACE BAPTISTACADEMY OF TACLOBAN,INC Date issued 2.2'72018 CTE No.2752018

for taxation, unless said revenues are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX (VAT)/PERCENTAGE TAX

If GRACE BAPTIST ACADEMY OF TACLOBAN, 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 One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the three percent (3%) percentage tax, if gross receipts do not exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00).

Notwithstanding that it is a non-stock, nion-profit corporation, its purchase of goods or properties or services and importation of goods shall nevertheless be subject to the twelve percent (12%) V AT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

:3)WITHHOLDING TAX

GRACE BAPTIST ACADEMY OF TACLOBAN, 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 National Internal Revenue Code of 1997, as amended, 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 Nationai Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) GRACE BAPTIST ACADEMY OF TACLOBAN,INC. is required to file on or before the i5th

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 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 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 examination by the BIR for purposes of ascertaining compliance with the conditions under which pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to 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

No. [RMC] No. 76-2003). related to the activities for which the Association is registered. (Revenue Memorandum Circular

4) Finally, it is subject to the payment of registration fee of Five Hundred Pesos (P500.00) as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.

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