BIR Ruling No. 287-2021

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No. E-737-233

CERTIFICATE OF TAX EXEMPTION

issued to

BOHOL WISDOM SCHOOL INCI CPG North Avenue, Tagbilaran City, Bohol SEC Company Reg. No. TIN:

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

2. Income derived from the operation of cafeterias/canteens, dormitories and l. Tuition and Miscellaneous Fees; and

bookstores located within its premises, owned and operated by BOHOL WISDOM SCHOOL INC., to be actually, directly and exclusively used for 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 applicabte 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 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 1UG

Csaw

K- Commissioner of Internal Revenue CAESAR R. DULAY M 044302

BOHOL WISDOM SCHOOL INC Page 2 of 3 Date issued_l CTE NG

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

For Non-Stock. Non-Profit Educational Institution under Section 30(H) of the Nationa! Internal Revenue Code of 1997, as Amended

TAX EXEMPTION 1) INCOME TAX. BOHOL WISDOM SCHOOL 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 1 Its revenues are actuaily, directly and exclusively used for educational purposes. It is a non-stock, non-profit educational institution; and

BOHOL WISDOM SCHOOL 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%' tax under the expanded foreign currency deposit system imposed under Section 27(D)(l) of the National Interna! 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 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 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 1997, as

b) C) foliowing the end of its taxable year (Sec. 4, Finance Department Order No. 137- 8 Board Resolution by the school administration on proposed projects (i.e.. equipment. books and the like) to be funded out of the money deposited in banks or placed in money markets, on or before the 1Sth day of the fourth month Certification of actual utilization of the said income; and construction and/or improvement of school buildings and facilities, acquisition of amended.

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Pursuant to Section 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 BOHOL WISDOM SCHOOL INC. are exempt from taxation provided they are owned and operated by it as ancillary services. WISDOM SCHOOL INC.'s, gross receipts from operations as a non-stock, non-profit 109(1)(H) of the National Internal Revenue Code of 1997, as amended. BOHOL

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX tsed for educationat purposes. under National Internal Revenue Code of :997, 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 income/receipts/revenues not expressly exempted and stated in the Certificate of Tax BOHOL WISDOM SCHOOL INC. is subject to income tax on all its Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed

Repnlihe Act No I0963 increased the tax rate from 7 2, to t$20 etfective Jan 1.2018 Iptment der A(qu Lnted m2+ os amending Iepatmenter Nin t

BOHOL WISDOM SCHOOL INC Page 3 of 3 Date issued_] (TE NO

2) VALUE ADDED TAX/PERCENTAGE TAX If BOHOL WISDOM SCHOOL INC. is engaged in the sale of goods or services in the

course of a business pursuit, including transactions incidental thereto, its revenues 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)3, or to the 3% percentage tax, if gross receipts do not exceed f3,000,000.00.

Notwithstanding that it is a non-stock, non-profit corporation, its purchase of goods or properties, services and importation of goods shall nevertheless be subject to the 12% VAT pursuant to Sections 106, 107 and 108 of the National Internal Revenue Code of 1997, as amended.

3) WITHHOLDING TAX subject to the withholding tax under Section 79 (A), Chapter XIII, Title II of the National No. 2-98, as amended, or if it makes income payments to individuals or corporations Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as BOHOL WISDOM SCHOOL INC. shall be constituted as withholding agent for the Internal Revenue Code of 1997, as amended, as implemented by Revenue Regulations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue amended. government if it acts as an employer and its employees receive compensation income

TAXPAYER DUTIES & RESPONSIBILITIES 1} The honoraria/allowances given to members of the Board of Trustees must be reasonable and subject to liquidation (DOF Opinion No. 005-20l9).

2) Required to 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 disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. 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

3) Under Section 235 of the National Internal Revenue Code of 1997, as amended, any provision liabilities, if any. 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

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

5) 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.

" Repubhe Act No 10963 increased the V.NT threshold from P1.219.50)0.00 ro P3.00.000 00 effechive Jan (. 2018