BIR Ruling No. 506-2019

Quezon City.

Certificate of Tax Exemption No. 0506-2019

CERTIFICATE OF TAX EXEMPTION

issued to

DOMINICAN COLLEGE OF STA. ROSA ILAGUNA INC.

[San Lorenzo South Subd. Balibago Sta. Rosa Iaguna 4025 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 he 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 nor-stock, non-profit corporation

1. Tuitiqn fees and Other school fees; and 2 Income derived from the operation of cafeterias/canteens, dormitories and bookstores

located withiu its premises, owned and operated by DOMINICAN COLLEGE OF educational purposes. STA. ROSA. LAGUNA INC., to be actually, directly and exclusively used for

nothing follows.

subject to the provisions of applicable BIR rules and regulations and the tax exeniptions, 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 from the date of issuance until revoked by this Office 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 Certificate of Tax Exeniption is being issued [on the basis of the facts and documents as represented and submitted. However, if upon ihvestigation, the BIR ascertains that the facts are different, then this Certificate shall be considered null and void.

Issued this day of SEP 1 0 2019

K-1-JAC Commissioner of Internal Revenue CAESAR R. DULAY

Page 2 of 3 Dominican College of Sta. Rosa, Laguna, Inc. Date issued SEP 0_2019 CTE No. U 5 0 6 - 2 0 l 9

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

TAX EXEMPTION

!) INCOME TAX. DOMINICAN COLLEGE OF STA.ROSA[LAGUNA, 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:

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

DOMINICAN COLLEGE OF STA. ROSA. LAGUNA, INC.'s interest income from currency bank 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 15%' 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 Revenue District Office concerned an annual (nformation return and duly audited financial statement together with the following:

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

and 15% tax on interest income under the expanded foreign currency deposit earned from passive investment not subject to the 20% final withholding tax system imposed by Section 27 (D) (1) of the Nationa! 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) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the NIRC, DOMINICAN COLLEGE OF STA. ROSA. LAGUNA INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT Moreover, revenues derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located within the premises of DOMINICAN COLLEGE OF STA. ROSA. LAGUNA, INC. are exempt from taxation provided they are owned and operated by it as ancillary activities.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX.

DOMINICAN COLLEGE OF STA.ROSA LAGUNA, INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

Republic Act Np. 10963 increased the tax rate from 7.5% to 15%effective January 1, 2018. 2 Department Order No. 149-95 dated November 24, 1995 amending Depar ment Order No. 137-87.

Dominican College of Sta. Rosa, Laguna, In CTE No. 0506-1uLJ Page 3 of 3 Date issued_SEP i g 2if1

NIRC, as amended, on its income derived from any of its properties, real or personal, or any activity conducted for iprofit, which income shouid be returned for taxation, unless said revenues are Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If DOMINICAN COLLEGE OF STA. ROSA, LAGUNA, INC. is engaged in the sale of goods derived therefrom shall be subject to the 12% VAT, in case the grdss receipts from such sales exceed P3,000,000.00 or services in the course of a business pursuit, including transactions incidental thereto, its revenues Three Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed

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.

WITHHOLDING TAX

DOMINICAN COLLEGE OE STA. ROSA,LAGUNA,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 XII, Title II of the NIRC, as as implemented by Revenue Regulations No. 2-98, as amended. implemented by Revenue Regulations No. 2-98, as amended, dr if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC, and

TAXPAYER DUTIES & RESPONSIBILITIES

1) DOMINICAN COLLEGE OF STA.ROSA,LAGUNA INC] is required to file on or before the and Balance Sheet with the Annual Information Return under bath, stating its gross income and 15th day of the fourth month following the end of the accounting/period a Profit and Loss Statement

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 qperation 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 1097, 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

it has been granted tax exeimptions or tax incentives, and its tax liabilities, if any. examination by the BIR for purposes of ascertaining compliande with the conditions under which

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internal invoices for each sale or transfer of merchandise or for services rendered which are not directly No. [RMC] Nq. 76-2003). Revenue Code of 1997, as amended, to issue duly registered receipts or sales or commercial 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 PhP 500.00 as prescribed in Section 236

(B) of the National Internal Revenue Code of 1997, as amended.

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3000,000.00 effective January 1, 2018.