BIR Ruling No. 93-2018

REPUBLIC OE TgT PHILIPPINES ngpnRtMENT oF FINANCE BUREAU OF INTERNAT REVENUE Quezon City ate of Tax Exemption 0-c,l_2c19 CERTIFICATE OF TAX EXEMPTION issued to ST" MARY MAGDALENE COI,LE ES OF LAGUI{A INC. Brgy.Uwisan, Calamba City, Laguna TIN SEC Company Reg. No. This certifies that the above-named corporation is a non-stock, non-profit corporation Ial.Nn-9dC1OhpaM-s"-EP1lo0T_9vA_)gXnobfoytnhlaeycNotunaattlihooenpafeolrlalIontiwtoenirnntgahal rtRevietesvnepunreuimseaoCrrybrdepecueroippTotss1:e99i7s, one of ihose enumerated under as amended. It is exempt from 1. Tuition fees and other contributions; located within the premises, 2. Cafeterias/canteens and bookstores sales owned, and operated by St. Mary Magdalene colleges of Laguna,Inc. --nothing follows---- l1i.a"9bj.i9li9ti1estoatnhderepsropvoisnisoirb.ri.lsitieosf applicable BIR rules and regulations and the tax exemptions, stated in the Terms and Conditions hereto attached and m^ade an integral parl 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 Oflice 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 characrer, pulpose 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 'i 7fi18 &-K-r-LLtAT CAESAR R. DULAY Commissioner of Internal Revenue cN^^{L.t*/ CEUA C" Ktrus Depury Cemmissioner

ST. ]VTARY MAGDALEI,{E COLLEGES cTE No. o9j-20'18 OF LAGUNA,INC. Date issued i*;1-2O18 TERMS AND CONDITIONS OF THE CERTM'ICATE OF TAX EXNMPTION TAX EXENIPTION l) INCONIE TAX ST' MARY MAGDALENE COLLEGES OF LAGUNA,INC. is exempt from the payrnent of income tax only on revenues and receipts enurnerated on the Certificate of Tax Exemption. It is understood that the school must continue to meet the following requisites as set forlh un{er Revenue Mernorandum Order (RMO) No 44-2016, to wit: a) It is a non-stock, non-profit educational institution; and b) Its revenues aie actually, directly and exclusively "used for educational purposes. i ST. MARY MAGDALBNE COLLEGBS OF 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 frorn the 20ohfinal tax and 7 llZohtax on interest income underthe expanded foreign cumenpy deposit system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 199'7, 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 information return and duly audited financial statement together with the following: a) Certification from their depository banks as to the amount of interest incorne earned from passive investment not subject to the 20Yo frnal withholding ta.x ' andT 112%o tax on interest income under the expanded foreign currency deposit system irnposed by Section 27 (D) (1) of the National Intemal Revenue Code of 1991, as amended; b) Certification of actual utilization of the said income; and c) Board Resolution by the school adrninistration 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 ,l5th day of the fourth month following the end of its taxable year (Sec. 4, Finance Departrlent Order No. 1 3 7-87)1. 2) VALUE ADDBD TAX (VAT) ON EDUCATIONAL SERVICES Pursuant to Section 109(H) of the National Internal Revenue Code of 7997, as amended, ST. MARY MAGDALENE COLLEGES OF LAGUNA,INC.'s gross receipts from operations as a non-stock, non-profit educational institution are exempt fi'om VAT. LIABILITY FOR INTERNAL RE\iENUE TAXES I ) nitcoME TAx .,: ST. MARY MAGDALENE COLLEGES OF LAGUNA,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 National Internal Revenue Code of 1997, as amended, on its income derived frorn any of its properties. real or personal, or any activity conducted tor profit, which income should be retumed I Department Order No. \49-95 dated November 24, 1995 amending Department Order No. 137-87 f,tk

ST. MARY MAGDALEIVE COLLEGES CTE l{o. $93*"1018 OF LAGUNA,INC. Date issued t_Tt_101S for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. 2) VALUE ADDED TAX (VAT) If ST. MARY MAGDALENE COLLEGES OF LAG{JNA,INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidentalthereto, 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 irnportation of goods shall nevertheless be subject to the 12% YAT pursuant to Sections 1 06 and 1 07 of the National Intemal Revenue Code of 1997 , as amended. 3) WITHHOLDING TAX ST. MARY'MAGDALENE COLLEGES OF LAG{INA, 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 National Internal Revenue Code of 1997, as amended, and as irnplementdd by Revenue Regulations No. 2-98, as amended. 1) ST. NLA,RY MAGDALENE COLLEGES OF LAGIINA,INC. is iequired to file on or belbre the l5th day of the fourth month following the end of the accounting period a Profit and Loss Statement and Balarlce 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, Articls of Incorporation, manner of operation and activities as well as sources and disposition of income" Copy of tliis Certificate of Tax Exemption shall be , attached to the aforementioned Annual Infonnation Return. ! 2) Under Section 235 of theNational Internal Revenue Code of 1997,asamended, any provision of existing general and special law to the contrary notw.ithstanding, 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 tlieNational 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 related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003). 4) Finally, it is subject to the payrnent of registration fee of PhP 500.00 as prescribed in Section 236(8) of the National Internal Reveuue Code of 1997 , as amended. &-K-l-LMAT