BIR Ruling No. 267-2018

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

Certificate of Tax Exemption No. 267-2018

CERTIFICATE OF TAX EXEMPTION

issued to

ERDA-TECH Bldg., Certeza corner Lorenzo. Beata, Pandacan, Manila ERDA-TECH FOUNDATION, INC. 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 certifies that the above-named corporation is a non-stock, non-profit corporation

2 1 3 Tuition Fees & Other School Related Fees; Income derived from the operation of cafeterias/canteens and Donations; and bookstores located within its premises, owned and operated by ERDA- TECH Foundation, 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. liabilities and responsibilities stated in the Terms and Conditions hereto attached and made an subject to the provisions of applicable BIR rules and regulations and the tax exemptions,

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 regulations of the BIR, or the terms and character, purpose or method of operation of the corporation which are inconsistent with the basis for its income tax exemption. This certification shall be valid from the date of issuance until revoked by this Office

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. This Certificate of Tax Exemption is being issued on the basis of the facts and Issued this day of..... :FEB 2 6.2018

Commissioner of Internal Revenue 10x0iny CAESAR R. DULAY 013662 K-1-LMAT

ERDA-TECH FOUNDATION, INC. Date issued 2-26-2018 CTE No.2672918

VALUE ADDED TAX (VAT)/PERCENTAGE TAX

If ERDA-TECH FOUNDATION, 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 Thousand Five Hundred Pesos (P1,919,500.00). percent (3%) percentage tax, if gross receipts do not exceed One Million Nine Hundred Nineteen be subject to the twelve percent (12%) VAT, in case the gross receipts from such sales exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00), or to the three

3)WITHHOLDING TAX 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 twelve percent (12%) VAT pursuant to Sections 106 and 107 of the National Internal Revenue Code of 1997, as amended.

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

TAXPAYER DUTIES & RESPONSIBILITIES 1)ERDA-TECH FOUNDATION, INC. is required to file on or before the 15th day of the fourth of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. month following the end of the accounting period a Profit and Loss Statement and Balance Sheet laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition during the preceding period and a certificate showing that there has not been any change in its By- 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 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. 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

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 PhP 500.00 as prescribed in Section 236(B) of the National Internal Revenue Code of 1997, as amended.

K-1-LMAT

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ERDA-TECH FOUNDATION, INC. Date issued 2-26-2018 CTE No. 267-2018

TAX EXEMPTION OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1) INCOME TAX

the school must continue to meet the following requisites as set forth under Revenue Memorandum Order (RMO) No 44-2016, to wit: revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood that ERDA-TECH FOUNDATION, INC. is exempt from the payment of income tax only on

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

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: ERDA-TECH FOUNDATION, 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 7 1/2% tax on interest

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

b) Certification of actual utilization of the said income; and c) Board Resolution by the school administration on proposed projects (i.e. month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87). banks or placed in money markets, on or before the 15th day of the fourth 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

2) VALUE ADDED TAX (VAT)ON EDUCATIONAL SERVICES

educational institution are exempt from VAT. Pursuant to Section 109(H) of the National Internal Revenue Code of 1997, as amended, ERDA- TECH FOUNDATION, INC.'s gross receipts from operations as a non-stock, non-profit

LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX

National Internal Revenue Code of 1997, as amended, on its income derived from any of its ERDA-TECHFOUNDATION,INC.issubjecttoincome 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 the 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 used for educational purposes. tax onallits

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

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