BIR Ruling No. 450-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City

Certificate of Tax Exemption No.

SH0-0450-2020

CERTIFICATE OF TAX EXEMPTION

issued to

COLLEGE OF ST.JOHN-ROXAS,INC Gov Atila Balgos Ave., Brgy. Banica, Roxas City 5800

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 pu-pose is one of those enumerated under Section 30(H) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME

TAX only on the following revenues or receipts:

1 Tuition and Miscellaneous Fees; and 2.. Income derived from the operation of cafeterias/canteens, dormitories and

bookstores located within its premises, owned and operated by COLLEGE OF ST.

JOHN-ROXAS, INC., to be actually, directly and exclusively used for educational

purposes.

-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 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 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_AUG i7 2020

ieaM

CAESAR R.DULAY

K-I Commissioner of Internal Revenue 036371

COLLEGE OF ST. JOHN-ROXAS, INC. Page 2 of 3 CTE No. Date issued SH20-0450-2020 ALG 1 7 202U

TERMS AND CONDITIONS OF THE CERTIFICATE OFTAX 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. COLLEGE OF ST.JOHN-ROXAS, 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:

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

COLLEGE OF ST. JOHN-ROXAS, 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 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 institution it shall on an annual basis submit to the Revenue District Office concerned an annual information

return and duly audited financial statement together with the following:

a Certification from their depository bank as to the amount of interest income

earned from passive investment not subject to the 20% final withholding tax and

15% 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 C Board Resolution by the school administration on proposed projects (i.e. Certification of actual utilization of the said income; and

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 National Internal Revenue Code of 1997, as amended, COLLEGE OF

ST. JOHN-ROXAS, INC.'s, gross receipts from operations as a non-stock, non-profit

educational institution are exempt from VAT. Moreover, revenues derived from assets

used in the operation of cafeterias/canteens, dormitories and bookstores located within the

premises of COLLEGE OF ST. JOHN-ROXAS, INC. are exempt from taxation

provided they are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

COLLEGE OF ST. JOHN-ROXAS, 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 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 for taxation, unless said revenues are actually, directly and exclusively

used for educational purposes. C

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018 Department Order No.149.95 dated November 24, 1995 amending Department Order No. 137-87

Page 3 of 3 COLLEGE OF ST. JOHN-ROXAS, INC. Date issued CTE No. GH7010450-2020 AtIG 1 7 2020

2) VALUE ADDED TAX/PERCENTAGE TAX sales exceed Three Million Pesos (P3,000,000.00)3, or to the 3% percentage tax, if gross If COLLEGE OF ST. JOHN-ROXAS, 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 12% VAT, in case the gross receipts from such receipts do not exceed P3.000,000.00.

amended. 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 National Internal Revenue Code of 1997, as

3) WITHHOLDING TAX Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. 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 National Internal Revenue 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 COLLEGE OF ST. JOHN-ROXAS, INC. shall be constituted as withholding agent for

TAXPAYER DUTIES & RESPONSIBILITIES 1)COLLEGE OF ST. JOHN-ROXAS,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 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 Statement and Balance Sheet with the Annual Information Return under oath, stating its that there has not been any change in its By-laws, Articles of Incorporation, manner of Return. gross income and expenses incurred during the preceding period and a certificate showing

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 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. accounts and other pertinent records of tax-exempt organization or grantees of tax

3)Further, it is also required under Section 6(C) in relation to Section 237 of the National which are not directly related to the activities for which the Association is registered. 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 (Revenue Memorandum Circular No. [RMC] No. 76-2003).

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.

Q

Republic Act No10963 increa sed the VAT thr p3.000.000.00effective Jan.1.201