BIR Ruling No. 684-2020

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

Certificate of Tax Exemption No. SH30-684-2020 DEC 2-9 2020

CERTIFICATE OF TAX EXEMPTION

issued to

WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES,INC. Clarinda Soriano St., BF Resort Village. Las Pinias City 1740 TIN:

SEC Company Reg. No.

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 and

1. Tuition and matriculation fees; 2 Student activities and laboratory fees; and

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

and exclusively used for educational purposes. bookstores located within its premises, owned and operated by WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES,INC.,to be actually,directly

--nothing follows.

subject to the provisions of applicable BIR rulesand 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

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 violation of any provisions of applicable rules and regulations of the BIR, or the terms and

for its income tax exemption.

as represented and submitted. However, if upon investigation, the BIR ascertains that the facts This Certificate of Tax Exemption is being issued on the basis of the facts and documents

are different, then this Certificate shall be considered hull and void.

Issued this day of DEC 2 9 .2020

am

CAESAR R.DULAY

K-1 Commissioner of Internal Revenue 038869

WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGESINC.CTE No.S0-6 2 Page 2 of 3 TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION under Section 30(H) of the'National Internal Revenue Code of 1997, as Amended For Non-Stock, Non-Profit Educational Institution DateisuedpEC 2 9 2020

1) INCOME TAX! TAX EXEMPTION from the payment of income tax only on reyenues 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 WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, INC. is exempt Wwit:

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

income from currency bank deposits and yield from deposit substitute instruments used exempt from the 20% final tax and 15%' tax under the expanded foreign currency deposit system imposed under Section 27(D)(1) of the National Internal Revenue Code of 1997, as WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES. INC.'s interest actually, directly and exclusively in pursuance of its purpose as an educational institution, are 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 information return and duly audited financial statement together with the following:

a Certification from their depository bank as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax 1997, as amended. and 15% tax on interest income under the expanded foreign currency deposit system imposed by Section 27(D)(1) of the National Internal Revenue Code of

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, onor before the 15th day of the fourth

month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87)2

2)VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES.

Pursuant to Section 109(1)(H) of the National Internal Revenue Code of 1997, as amended, WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, INC.'s, gross receipts from operations as a non-stock, non-profit educational institution are exempt from

VAT. Moreover, revenues derived from assets used in the operation of cafeterias/canteens,

dormitories and bookstores located within the premises of WESTFIELD SCIENCE

ORIENTED SCHOOL AND COLLEGES, INC. are exempt from taxation provided they

are owned and operated by it as ancillary services.

LIABILITY FOR INTERNAL REVENUE TAXES

1 INCOME TAX WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, INC. is subject to

income tax on all its income/receipts/revenues not expressly exempted and stated in the

Republic Act No. 10963 increased the tax rate from 7.5% to 15% effective Jan. 1, 2018

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

WESTFIELD SCIENCE ORIENTED SCHOOLAND COLLECES.INC. CTE NO.SHE0 8 T 2 20 Page 3 of 3

Certificate of Tax Exemption. Moreover it is subject to the coresponding internal revenue taxes imposed under 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 returmed for taxation, unless said revenes are actully, directly and exclusively used for educational purposes. Date ssuedDEC22020

2) VALUE ADDED TAX/PERCENTAGE TAX incidental thereto, its revenues derived therefrom shall be subject to the 12% VAT, in case the If WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions gross receipts from such sales exceed Three Million PesosP3,000,000.00),or to the 3% percentage tax, if gross receipts do not exceed P3,000,000.00.

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 amended.

3) WITHHOLDING TAX WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, 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 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.

1) WESTFIELD SCIENCE ORIENTED SCHOOL AND COLLEGES, INC., is required to TAXPAYER DUTIES & RESPONSIBILITIES

file on or before 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 attached to the 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 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 National

Internal 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 No. [RMC] No. 76-2003).]

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. 1,

2018 G