BIR Ruling No. 346-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

#346-2017

CERTIFICATE OF TAX EXEMPTION

issued to

SILSILAH FOUNDATION, INC. Doing business under the name and style of OASIS LIVELIHOOD AND TRAINING CENTER Harmony Village Pitogo. Sinunuc. Zamboanga City 7000

TIN: SEC Company Reg. No.

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

1. 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.

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

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

Issued this day of JUL 3 1 201?

aaM CAESAR R. DULAY

K -1 Commissioner of Internal Revenue 0Q8179

Silsilah Foundation, Inc. (Doing business under the CTE No. 346-2017

name and style of Oasis Livelihood and Training Center) Date issued_July 31, 2017 Page 2 of 3

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

TAX EXEMPTION

1) INCOME TAX. SILSILAH FOUNDATION, INC.(Doing business under the name and

style of OASIS LIVELIHOOD AND TRAINING CENTER) 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

SILSILAH FOUNDATION, INC._(Doing business_under the name_ and style of OASIS LIVELIHOOD AND TRAINING CENTER) 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.

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 seven 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.

2) VALUE ADDED TAX

If SILSILAH FOUNDATION INC. (Doing business under the name and style of OASIS LIVELIHOODANDTRAININGCENTER)is engaged in the 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 be subject to the 12% VAT pursuant to Sections 106 and 107 of the NIRC.

3) WITHHOLDING TAX

SILSILAH FOUNDATION, INC. (Doing business under the name and style of OASIS LIVELIHOOD AND TRAINING CENTER) 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 Il of thc NIRC,as

implemented by Revenue Regulations No. 2-98, as amended. or if it makes income

payments to individuals or corporaiions subject to the withholding tax pursuant to Section 57 of the NIRC. as implemented by Revenue Regulations No. 2-98, as amended.

Silsilah Foundation, Inc. (Doing business under the CTE No.346-2017

name and stvie of Oasis Livelihood and Training Center) Page 3 of 3 Date issued-July 31.2017

TAXPAYER'S DUTIES & RESPONSIBILITIES

1 SILSILAH FOUNDATION, INC. (Doing business under the name and style of OASIS LIVELIHOOD AND TRAINING CENTER) 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 NIRC, 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 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- 203

4 Finally, it is subject to the payment of registration fee of PhP 500.00 as prescribed in Section 236(B) of the NIRC