BIR Ruling No. 788-2019

Quezon'City

Certificate of Tax Exemption No. 0788-2019

CERTIFICATE OF TAX EXEMPTION

issued to

ST.CATHERINE'SCOLLEGE, INC Poblacion 1 Carcar City. Cebu. Philippine$ 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 certifjes that the above-named corporation is a non-stock, non-profit corporation

2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores I. Tuition and Miscellaneous Fees; and located within its premises, owned and operated by ST. CATHERINE'S COLLEGE, INC., to be actually, directly and exclusively used for educational purposes.

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 regulatiohs and the tax exemptions. liabilities and resppnsibilities stated in the Terms and Conditions hereto attached and niade an

basis for its income tax exemption. conditions herein set forth. It shall likewise be revoked if there are material changes in the for violation of any provisions of applicable rules and regulationsjof the BIR, or the terms and 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 DEC 1.3_2019

K- 1 /sp17.(20 Commissioner of Internal Revenue CAESAR R. DULAY

: Page 2 of 3 ST. CATHERINE'S COLL +INC CTE No. Date issued Tot 0.788- 2019 DEC 1 3 2019.

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

TAX EXEMPTION

l) INCOME TAX.ST.CATHERINE'S COLLEGE, INC. is exempt from the payment of income Memorandum Order (RMO) No 44-20 16, to wit: 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

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

information return and duly audited financial statement together with the following: ST. CATHERINE'S COLLEGE, INC.'s interest income from currency bank deposits and yield purpose as an educational institution, are exempt from the 20% final tax and 15%' tax under the 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 from deposit substitute instruments used actually, directly and]exclusively in pursuance of its expanded foreign currency deposit system imposed under Section(27(D)(1) of the National Internal

(a) Certification from their depository bank as to the amount of interest income earned from 27(D)(1) of the Nationat Internal Revenue Code of 1997, as[amended. 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

(b)Certification of actual utilization of the said income; and (c) Board Resolution by the school administration on proposed projects (i.e., construction year (Sec. :4, Finance Department Order No. 137-87)2. 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 I5th day of the fourth month following the end of its taxable

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section derived from assets used in the operation of cafeterias/canteens, dormitories and bookstores located they are owned and operated by it as ancillary services. as a non-stock.! non-profit educational institution are exempt from VAT. Moreover, revenues within the premises of ST. CATHERINE'S COLLEGE, INC. are exempt from taxation provided 109(1)(H) of the NIRC, ST. CATHERINE'S COLLEGE, INC!'s gross receipts from operations

LIABILITY FOR JNTERNAL REVENUE TAXES

1) INCOME TAX

NIRC, as amended, on its income derived from any of its properties, real or personal, or any activity ST.CATHERINE'SCOLLEGE,INC.issubject 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 toincome tax on all its

3 Department Order No. 149-95 dated November 24, 1995 amending Departiment Order No. 137-87 Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018

Page 3 of 3 ST. CATHERINE'S COL E INC CTE No. Date issuec 0788 -2019 DEC 3 c3

actually, directly and exclusively used for educational purposes. conducted for profit, which income should be returned for taxation, unless said revenues are

2) VALUE ADDED TAX/PERCENTAGE TAX

(P3,000,000.00)3, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. of a business pursuit, including transactions incidental thereto, its revenues derived therefrom shalt be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos If ST. CATHERINE'S COLLEGE, INC. is engaged in the sale of goods or services in the course

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

by Revenue Regulations No. 2-98, as amended. withholding tax under Section 79 (A), Chapter XIII, Title II pf the NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes iricome payments to individuals or corporations subject to the withholding tax pursuant to Section 5% of the NIRC, and as implemented ST. CATHERINE'S COLLEGE, INC. shall be constituted as withholding agent for the government if it acts as an employer and its employees receive cpmpensation income subject to the

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

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

3) Further, it is also required under Section 6(C) in relation to Sdction 237 of the National Internal No. [RMC] No! 76-2003). 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

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.

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective Jan. 2018