BIR Ruling No. 410-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No. 410-2018

CERTIFICATE OF TAX EXEMPTION issued to

Productivity Drive, Carmelray Industrial Park 1, Canlubang, Calamba City, Laguna 4028 DUALTECH TRAINING CENTER FOUNDATION INC. 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 the 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 non-stock, non-profit corporation

1. Tuition Fees and other school related fees; 3 Income derived from the operation of cafeterias/canteens and Donations and

DUALTECH TRAINING CENTER FOUNDATION, INC., to be actually, directly and exclusively used for educational purposes. bookstores located within .its- premises, owned and operated by

-nothing follows--

integral part hereof. It is liable, however, to all other taxes not enumerated above. 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

for violation of any provisions of applicable rules and regulations of the BIR, or the terms and basis for its income tax exemption. 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 MAR 0 9 2018

18

K-I ASB Commissioner of Internal Revenue CAESAR R. DULAY 014474

Page 2 of.3 DUALTECH TRAINING FOUNDATION, INC. CTE No.+10-2018 Date issued 3-9-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDTTIONS

TAX EXEMPTION 1) INCOME TAX.

Exemption. It is understood that the school must continue to meet the following requisites as set forth under Revenue Memorairdum Order (RMO) No 44-2016, to wit: DUAL'TECH TRAINfNG CENTER FOUNDA TION, INC. is exempt from the payment of income tax oniy on revenues and reccipts enumerated on the Certificate of Tax

concerned an annual infornation return and duly audited financial statement together with educational institution it shall on an annual basis subinit to the Revenue District Office the following: DUALTECH TRAINING CENTER FOUNDATION, 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 7 1/2% 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 conipliance with the conditions that as a tax-exempt Its revenues are actually, d..ectly and exclusively usedfor educational purposes. It is a non-stock. non-oroil educational institution; and

(a) Certification from their depository banks as to the amount of interest (1) of the National Internal Revenue Code of 1997, as amended; income earned from'passive investment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit systern imposed by Section 27 (D)

(b) Certification of actual utilization of ue said income; and (c) Board Resalutioi1 by the sehool ad:ninisti ation on propo.ed projects taxable year (Sec. 4, Finance Department Order No. 137-87) or before the 15th day of the fourth month following the end of its (i.e.. constrution and/or improventert of schosi buiidings" and facilities, acquisition of equipinent, books and the like) to be funded out of the noney deposited in banks or placed in money markets, on

2) VALUE ADLED TAX (VAT) ON EDUCATIONAL SERVICES

Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, DUALTECH TRAINING CENTER FGUNDATION, INC.'s grOSs receipts from operations as a non- stock, non-profit educational institution are exempt from VAT. LIBILTTY FOKINTERNALREVENUE TSXES 1) INCOME TAX

properties, real or personal, or any activity conducted for profit, which income should be Certificate of Tax Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under NIRC, as amended, on its income derived from any of its DUALTECH TRAINING CENTER FOUNDATION, INC. is subject to income tax on all its income/receipts/revenues not expressty exempted and stated in the

: Department Order No. 149-95 dated November 24, 1995 amending Department Order No. 137-87

Page 3 of 3 DUALTECH TRAINING FOUNDATION, INC. returned for taxation, unless said revenues are actually, directly an$ exclusively used for educational purposes. CTE No. 410-2018 Date issued 39-218

2) VALUE ADDED TAX /PERCENTAGE TAX P1,919,500.00. Hundred Pesos (P1,919,500.00), or to the 3% percentage tax, if gross receipts do not exceed If DUALTECH TRAINING CENTER FOUNDATION, INC. is engaged in the sale of thereto, its revenue derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceeds One Million Nine Hundred Nineteen Thousand Five goods or services in the course of a business pursuit, including transactions incidental

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

it makes income payments to individuals or corporations subject to the withholding tax 98, as amended. compensation income subject to the withholding tax under Section 79 (A), Chapter XII Title II of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if pursuant to Section 57 of the NIRC, and as implemented by Revenue Regulations No. 2- DUALTECH TRAINING CENTER FOUNDATION, INC. shall be constituted as withholding agent for the government if it acts as an employer and its employees receive

1) DUALTECH TRAINING CENTER FOUNDATION,INC. is required to file on or TAXPAYER DUTIES & RESPONSIBILITIES manner of operation and activities as well as sources and disposition of income. Copy of Information Return. before the 15th day of the fourth month following the end'of the accounting period a Profit this Certificate of Tax Exemption shall be attached to the aforementioned Annual and Loss Statement and Balance Sheet with the Annual Information Return under oath, showing that there has not been any change in its By-laws, Articles of Incorporation. stating its gross income and expenses incurred during the preceding period and a certificate

2) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any incentives, and its tax liabilities, if any. compliance with the conditions under which it has been granted tax exemptions or tax 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

3) Further, it is also required under Section 6(C) in relation to Section 237 of the National Internal Revenue Code of 1997, as amended, to issue duly registered receipts or sales or .

Memorandum Circular No. [RMC] No. 76-2003) 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

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.