BIR Ruling No. 559-2017

REPUBLIC OF THE PHLIPPINFS

DEPArtMEnt OF FinAnGE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No. 5-2017

CERTIFICATE OF TAX EXEMPTION

issued to

Unit 502. One Corporate Plaza. 845 Pasay Rd.. San Lorenzo Village. Makati City PHAPCARES FOUNDATION, INC.

SEC Company Reg. No. TIN:

This certifies that thc above-named corporation is a non-stock. non-profit corporation and has proven by actual operation that its primary purpose falls under Scction 30 (E) of the National Internal Revenue Code of 1997, as amended. It is excmpt from INCOME TAX only on the following revenues or receipts:

I. Donations and Contributions.

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

regulations of BIR. or the terms and conditions herein set forth. earlier revoked by this Office for violation of any provisions of applicable rules and This certification shall be valid for three (3) years from the date of issuance untess

This Certificate may be renewed upon filing of a subsequcnt application fo revalidation provided under Revenue Memorandum Order (RMO) No. 20-2013. Failure to renew this Certificate shall be deemed a revocation thercof upon the expiration of thc threc (3)-year period.

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_DEC 0 6_20tZ

1ew5am

K-I spt Commissioner of Internal Revenue CAESAR R. DULAY 011509

PHAPCARES FOUNDATION INC. Page 2 of 3 Date issucd_12--::017 CTE NO 555-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

TAX EXEMPTION

1) INCOME TAX revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover. to be entitled to the tax exemptions enumerated herein, the association/corporation/ organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013. PHAPCARES FOUNDATION, INC. is only exempt from the payment of income tax on

LIABILITY FOR INTERNAL REVENUE TAXES

I) INCOME TAX activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. 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 NIRC on its income derived from any of its properties. real or personal, or any PHAPCARES FOUNDATION, INC. is subiect to income tax on all its

seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section Likewise, interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements and royalties derived from sources within the Philippines are subject to the twenty percent depository bank under the expanded foreign currency deposit system shall be subject to 27(D)(1) in relation to Sec. 57(A) both of the NIRC. (20%) final withholding tax: Provided, however, that interest income derived by it from a

2) VALUE ADDED TAX/PERCENTAGE TAX course of a business pursuit, including transactions incidental thereto, its revenues derived the 3% percentage tax, if gross receipts do not exceed f1,919,500.00. If PHAPCARES FOUNDATION, INC. is engaged in the sale of goods or services in the therefron shall be subject to the 12% VAT, in case the gross receipts from such sales is One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1.919.500.00), or to

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 '37 of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended. 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 PHAPCARES FOUNDATION.INC. shall be constituted as withholding agent for the government if it acts as an employer and its employees receive compensation income

PHAPCARES FOUNDATIONINC Pagc 3 of 3 Datc iud10 CIE No.. 559-217

TAXPAYER'S DUTIES & RESPONSIBILITIES

1) PHAPCARES FOUNDATION INC. is required to file on or before the 15th day of the been any change in its By-iaws. Articles of Incorporation, manner of operation and Exemption shall be attached to the aforementioned Annuat Information Return. 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 incomc and expenses incurred during the preceding period and a certificate showing that there has not activities as well as sources and disposition of income. Copy of this Certificate of Tax

2) Under Section 235 of the NIRC, any provision of existing gencral and special (aw 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 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 the NIRC to merchandise or for services rendered which are not directly related to the activities for issue duly registered'receipts or sales or commercial invoices for each sale or transfer of which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76- 2003)

4 Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended