BIR Ruling No. 445-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

SH30--0445-202Q

CERTIFICATE OF TAXEXEMPTON

issued to

FATHER SATURNINO URIOS UNIVERSITY (FSUU), INC.1

CBE Building, San Francisco St., Sikatuna, Butuan City 8600

SEC Company Reg. No. TIN:

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

1.Tuition fees and Other school fees; and

2. Income derived from the operation of cafeterias/canteens, dormitories and bookstores

UNIVERSITY (FSUU, INC., to be actually, directly and exclusively used for Iocated within its premises, owned and operated by FATHER SATURNINO URIOS

educational purposes.

-nothing follows-

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 integral part 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 Office 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 Certificate of Tax Exemption is being issued on the basis of the facts and

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

Issued this day ofAUG 1 7 2020

ieawlmv

CAESAR R. DULAY Commissioner of Internal Revenue

K-1-JAC 036375

Q

Formerly Urios College, Inc.

Page 2 of 3 (FSUU), Inc. Father Saturnino Urios University Date issued "AtUG 1 7 -2020 CTE No._H30 0445-202

TERMS AND CONDITIONS

OF THE CERTIFICATE OF TAX EXEMPTION

For Non-Stock, Non-Profit Educational Institution

under Section 30(H) of the National Internal Revenue Code of 1997, as Amended

TAX EXEMPTION

1)INCOME TAX.FATHER SATURNINO URIOS UNIVERSITY (FSUU,INC.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:

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

FATHER SATURNINO URIOS UNIVERSITY (FSUU,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

15%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 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 income earned from passive investment not subject to the 20% final withholding tax and 15% tax on interest income under the expanded foreign currency deposit

of 1997, as amended; system imposed by Section 27 (D) (1) of the National Internal Revenue Code

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

(c)Board Resolution by the school administration 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 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No.

137-87)3.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section

109(1)(H) of the National Internal Revenue Code of 1997, as amended, FATHER SATURNINO URIOS UNIVERSITY (FSUU), INC.'s gross receipts from operations as a non-stock, non-profit educational institution is exempt from VAT. Moreover, revenues derived from assets used in the

FATHER SATURNINO URIOS UNIVERSITY (FSUU, INC. are exempt from taxation provided they are owned and operated by it as ancillary activities. operation of cafeterias/canteens, dormitories and bookstores located within the premises of

LIABILITY FOR INTERNAL REVENUE TAXES

1INCOME TAX

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

Page.3 of 3 FSUU), Inc. ther Saturnino Urios University CTE No. _S 30g 5o5 - 2 0 2 a Date issued_AUG 1 7 20Z

FATHER SATURNINO URIOS UNIVERSITY (FSUU), INC. is subject to income tax on all its income/receipts/revenues not expressly exempted and stated in the Certificate of Tax

National Internal Revenue Code of 1997, 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 Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under

for taxation, unless said revenues are actually, directly and exclusively used for educational

purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

If FATHER SATURNINO URIOS UNIVERSITY (FSUU,INC.is engaged in the sale of goods

derived therefrom shall be subject to the 12% VAT, in case the gross receipts from such sales exceed Three Million Pesos (P3,000,000.00)4, or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00. or services in the course of a business pursuit, including transactions incidental thereto, its revenues

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended. or services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to

3)WITHHOLDING TAX.

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 implemented by Revenue Regulations No. 2-98, as amended. FATHER SATURNINO URIOS UNIVERSITY (FSUU, 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

TAXPAYER DUTIES & RESPONSIBILITIES

FATHER SATURNINO URIOS UNIVERSITY (FSUU), INC. is required to file on or before attached to the aforementioned Annual Information Return. the 15th day of 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 incurred during the preceding period and a certificate showing that there has not been any change in its By-laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. Copy of this Certificate of Tax Exemption shall be

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 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 examination by the BIR for purposes of ascertaining compliance with the conditions under which

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 commercial related to the activities for which the Association is registered. (Revenue Memorandum Circular No. [RMC] No. 76-2003). invoices for each sale or transfer of merchandise or for services rendered which are not directly

4)Finally, it is subject to the payment of registration fee of P500.00 as prescribed in Section 236 (B) of the National Internal Revenue Code of 1997, as amended. O

4 Republic Act No. 10963 increased the VAT threshold from P1.919.500.00 to P3.000,000.00 effective January 1. 2018.