BIR Ruling No. 302-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Certificate of Tax Exemption No.

302-2017

CERTIFICATE OF TAX EXEMPTION

issued to

OUR LADY OF CAYSASAY ACADEMY SEC Company Reg. No.. TIN Taal.Batangas

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: and has proven by actual operation that its primary purpose is one of those enumerated under This certifies that the above-named corporation is a non-stock, non-profit corporation

2. Income derived from the operation of cafeterias/canteens and bookstores 1.Tuition and other school related fees. located within its premises provided they are owned and operated by the school as ancillary activities.

nothing follows

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. subject to the provisions of applicable BIR rules and regulations and the tax exemptions.

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 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 JUN 08 2017

K-1 Commissioner of Internal Revenue Mca-w1ne CAESAR R.DULAY 006986

Page 2 of 3 Our Lady of Caysasay Academy CTE No. Date issued 68-2017 302-2017

TERMS AND CONDITIONS

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

TAX EXEMPTION

1) INCOME TAX. OUR LADY OF CAYSASAY ACADEMY 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

income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of 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: OUR LADY OF CAYSASAY ACADEMY'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 the National Internal Revenue Code of 1997, as amended, subject to compliance with the conditions

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

(b)Certification of actual utilization of the said income; and

of equipment, books and the like) to be funded out of the money deposited in following the end of its taxable year (Sec. 4, Finance Department Order No. (c)Board Resolution by the school administration on proposed projects (i.e. banks or placed in money markets, on or before the 15th day of the fourth month construction and/or improvement of school buildings and facilities, acquisition 137-87).

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 109(H) of the NIRC,OUR LADY OF CAYSASAY ACADEMY'S gross receipts from operations as a non-stock, non-profit educational institution are exempt from VAT

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

Page 3 of 3 Our Lady of Caysasay Academy Date issued 6-8-2017 CTE No. 302-2017

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

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 NIRC, 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. OUR LADY OF CAYSASAY ACADEMY is subject to income tax on all its

2) VALUE ADDED TAX

If OUR LADY OF CAYSASAY ACADEMY is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, 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 importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106 and 107 of the NIRC.

3.WITHHOLDING TAX

OUR LADY OF CAYSASAY ACADEMY 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 NIRC, 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 NIRC, and as implemented by Revenue Regulations No. 2-98, as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

) OUR LADY OF CAYSASAY ACADEMY is required to file on or before the 15th day of the

incurred during the preceding period and a certificate showing that there has not been any change disposition of income. Copy of this Certificate of Tax Exemption shall be attached to 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 in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources and aforementioned Annual Information Return.

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 accounts and other 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. pertinent records of tax-exempt organization or grantees of tax incentives shall be subject to

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

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.