BIR Ruling No. 503-2017

REPUBLGOTE HHPPINES DEPARIMENT OE FINANGE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

CERTIFICATE OF TAX EXEMPTION

issued to

Del Monte Ave. cor. Sto. Domingo St.. Siena 1. Queron City 11 14 SEC Company Reg. No. SIENA COLLEGE,INC. 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 cxempt from This certifies that the above-named corporation is a non-stock. non-profit corporation

3. Income from operation of Canteen and Bookstore, sale of patches, uniforms located within 2. Other school fees such as library fees, laboratory fess, medical-dental fees, audio-visual fees. 1. Tuition Fees; actually, directly and exclusively used for educational purposes. guidance fees, athletic fees and miscellaneous fees such as library fines, graduation fees and its premises, owned and operated by SIENA COLLEGE, INC., which income is to be all other miscellaneous fees:

-nothing follows-

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

basis for its income tax exemption. for violation of any provisions of applicable rules and regulations of the BIR. or thc 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 This certification shall be valid from the date of issuance until revoked by this Office

that the facts are different. then this Certificate shall be considered null and void. documents as represented and submitted. However. if upon investigation. the BIR ascertains This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day of NOV 0 6.2017.

1aamne

K - 1 Commissioncr of Internal Revenue CAESAR R. DULAY 010831

Siena College, Inc. Page 2 of 3 CTE No. Date issued

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

1} INCOME TAX. SIENA COLLEGE. INC, is exempt from thc 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:

I lts revenues are actually. directly and exciusively used for educational purposes It is a non-stock, non-profit educational institution: and

following: SIENA.COLLEGE, 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 the cxpanded foreign currency deposit system imposed under Section 27 (D) (!) of the National Internal Revenue Code of 1997. as amended. subjcet to compliance wirh the conditions that as a tax-exempt edueational institution it shall on an annual basis submit to the Revenue District Office educational institution. are exempt from the 20% inai tax and 7 1/2% tax on interest income under concerned an amual information return and duly audited financial statement together with the

of 1997. as amcnded: (a)Certification from their depository banks as to the amount of interest income and 7 1/2% tax on interest income umder the expanded forcign currency deposit system imposed by Section 27 (D) (1) of the National Internal Revenue Code earned from passive investment not subject to the 20% final withholding tax

(b)Certification of actual utilization of the said incone: and

(c)Board Resolution by the school administration on proposed projects (i.c. of cquipment. books and the like) to bc funded out of the money deposited in foliowing the end of its taxabie year (Sec. 4, Finance Department Order No. construction and/or improvement of schoot buiidings and facilities. acquisition banks or placed in money markets. on or before the 1 5th day of the fourth month 137-87)

2) VALUE ADDED TAX (VAI) ON EDUCATIONAL SERVICES. Pursuant to Sccton 109(+)(!) of the NIRC. SIENA COLLEGE,!NC.'s gross receipts from operations as a non-stock. non-profit educational institution is exenpt from VAT

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

expressly exempted and stated in the Certificate of Tax Exemption. Moreover. it is subject to the corresponding internal revenue taxes imposed under NIRC. as amended. on its income derived SIENA COLLEGE, INC. is subject to income tax on all its income/ receipts/ revenues not

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Siena College, Inc. Page 3 of 3 CTE No.-503.201Z Date issued11-6=2037

should be returned for taxation. unless said revenues are actually. directly and exclusively used for from any of its properties, real or personal, or any activity conducted for profit, which income educational purposes.

2) VALUE ADDED TAX

pursuit. including transactions incidental thereto, in general. it shall be tiable for VAT on the revenues derived therefrom. If SIENA COLLEGE, INC. is engaged in the sale of goods or services in the course of a business

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 I06 and 107 of the NIRC

3) WITHHOLDING TAX

98. as amended. or ir 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. as an employer and its employees receive compensation incomc subject to the withholding tax under SIENA COLLEGE, INC. shall be constituted as withholding agent for the government if it acts Section 79 (A). Chapler XII1. Title II of the NIRC. as implemented by Revenue Regulations No. 2

TAXPAYER DUTIES & RESPONSIBILITIES

L) SIENA COLLEGE. 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, manncr of opcration and activities as well as sources and disposition of

Information Return. income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual

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 aceounts and other it has been granted tax exemptions or tax incentives. and its tax liabilities, if any. pertinent records of tax-exempt organization or grantees of tax incentives shall be subiect to examination by the BIR for purposcs of ascertaining compliance with the conditions under which

3) Further. it is also required under Section 6(C) in retation to Section 237 of the National Internal No. [RMC] No. 76-2003). 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 Menorandum 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