BIR Ruling No. 502-2017

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INIERNAL REVENUE

Quezon City

Certificate of Tax Exemption No.

CERTIFICATE OF TAX EXEMPTION

issucd to

UCCP - BAGUIO EDUCATIONAL CENTER, INC.

Westside Burnham Park, Baguio City 2600

SEC Company Reg. No TIN:

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

I. Tuition fees and Other school fees: 2. Income derived from operation of cafeterias/canteens and bookstores located

within its premises, owned and operated by UCCP - BAGUIO EDUCATIONAL CENTER, 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.

for violation of any provisions of applicable rules and regulations of the BIR. or the terms and This certification shall be valid from the date of issuancc until revoked by this Office

conditions herein set forth. It shall likewise be revoked if there are material changes in the

basis for its income tax exemption. character. purposc or method of operation of the corporation which are inconsistent with the

documents as represented and submitted. However. if upon investigation. thc BiR ascertains that the facts are different, then this Certificate shall be considered null and void. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of_-NOV 0 6 2017

183aM

CAESAR R. DULA

K-I-JAC Commissioner of Internal Revenuc 010837

Page 2 of 3 UCCP -- Baguio Educational Center, Inc. CTE No. Date issued 11-5-3017 5.2-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

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. UCCP - BAGUIO EDUCATIONAL CENTER, INC. is exempt from the

payment of incomc 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 i. Its revenues are actually, directly and exclusively used for educational purposes.

deposits and yield from deposit substitute instruments used actually. directly and exclusively in UCCP - BAGUIO EDUCATIONAL CENTER, INC.'s interest income from currency bank

pursuance of its purpose as an educational institution, are exempt from the 20% final tax and 7 1/2%

Revenue District Office concerned an annual information return and duly audited financial 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 statement together with the following:

(a)Certification from their depository banks as to the amount of interest incomc earned from passive investment not subject to the 20% final withholding tax and 7 1/2% 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

following the end of its taxable year (Sec. 4, Finance Department Order No. (c)Board Resolution by the school administration on proposed projects (i.e.. 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 1 Sth day of the fourth month (37-87) construction and/or improvement of school buildings and facilities, acquisition

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES. Moreover, revenues derived from assets used in the operation of cafeterias/cantcens and bookstores |ocated within the premises of UCCP - BAGUIO EDUCATIONAL CENTER,INC. are exempt from taxation provided they are owned and operated by it as ancillary activitics. 109(1)(H) of the N!RC, UCCP - BAGUIO EDUCATIONAL CENTER INC.'s gross receipts from operations as a non-stock, non-profit educational institutions are exempt from VAt Pursuant to Section

LIABILITY FOR INTERNAL REVENUE TAXES

1) INCOME TAX

income/receipts/revenues not expressly exempted and stated in the Certificate of Tax UCCP - BAGUIO EDUCATIONAL CENTER,INC. is subject to income tax on all its

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

Page 3 of 3 UCCP -- Baguio Educational Center, Inc. C'TE No. Date issued_11-6-017 52-2017

Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under NiRC, as amended, on its income derived from any of its properties. real or personal. or any activity conducted for profit. which incomc should be returned for taxation. unless said revenucs are actually, directly and exclusively used for educational purposes.

2) VALUE ADDED TAX/PERCENTAGE TAX

tf UCCP - BAGUIO EDUCATIONAL CENTER,INC. is engagcd in the sale of goods or

One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919.500.00). or to the 3% 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 is

perccntage tax. if gross receipts do not exceed f l.919.500.00.

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% V AT pursuant to Sections 106 and 107 of the NIRC.

3) WITHHOLDING TAX

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 XII. Title II of thc NIRC. as implemented by UCCP - BAGUIO EDUCATIONAL CENTER. INC. shall be constituted as withholding agent

Revenue Regutations No. 2-98. as amcndcd. or if it makes incoine payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the NIRC. and as implemented by Revenue Regulations No. 2-98. as amended.

TAXPAYER DUTIES & RESPONSIBILITIES

1) UCCP - BAGUIO EDUCATIONAL CENTER, INC. is required to fite on or before the 15th

day of the fourth month following the end of the accounting period a Profit and Loss Statement and Baiance Sheet with the Annuat Information Return under oath. stating its gross income and

change in its By-laws. Articles of Incorporation, manner of operation and activitics as well as the aforementioned Annual Infornation Return. sources and disposition of income. Copy of this Certificate of 'T'ax Exemption shall be attached to expenses incurred during the preceding period and a certificate showing that there has not been any

2) Under Section 235 of the National Internal Revenue Code of 1997, as amcnded. any provision of it has been granted tax exemptions or tax incentives, and its tax liabilities. if any. cxisting gencral 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 bc subicct to examination by the BiR for purposes of ascertaining compliance with thc conditions under which

3) Further. it is also rcquired under Section 6(C) in relation to Section 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 related to the activities for which the Association is registered. (Revenue Memorandum Circular 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 Php 500.00 as prescribed in Section 236(B) of thc National Internai Revenuc Code of 1997. as amended.