BIR Ruling No. 405-2022

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No.

S30H:- 4 0 5 - 2 0 2 2

CERTIFICATE OF TAX EXEMPTION

issued to

San Lorenzo Drive, San Lorenzo Village, Makati City ASSUMPTION COLLEGE INC. SEC Company Reg. No. TIN: :

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: proven by actual operation that its primary purpose is one of those enumerated under Section This certifies that the above-named entity is a non-stock, non-profit corporation and has

1234 Scholarship grants; dormitories and bookstore located within its premises, owned and operated by ASSUMPTION COLLEGE INC. to be actually, directly Income and exclusively used for educational purposes. Donations; and Tuition fees and other miscellaneous school fees; derived from the operation of cafeterias/canteens.

nothing follow. 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.

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

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 This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day of_OCT 0 7 2022

KI-BKTD Commissioner of Internal Revenue LILIA CATRIS GUILLERMO hRl E: 001894

ASSUMPTION COLLEGEINC. Page 2 of 3 CTE N Date issued S30H- "OCT 0 7 2022 405-2022

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

under Section 30(H) of the Tax Code Code of 1997, as amended For Non-Stock, Non-Profit Educational Institution

TAX EXEMPTION 1) INCOME TAX. that the school must continue to meet the following requisites as set forth under Revenue revenues and receipts enumerated on the Certificate of Tax Exemption. It is understood Memorandum Order (RMO) No 44-2016, to wit: ASSUMPTION COLLEGE, INC. is exempt from the payment of income tax only on

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

information return and duly audited financial statement together with the folowing: ASSUMPTION COLLEGE, 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)(1) of the Tax 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

(a) imposed by Section 27(D)(1) of the Tax'Code of 1997, as amended. 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

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

(c banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year.? 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

2) VALUE ADDED TAX (VAT) ON EDUCATIONAL SERVICES) Pursuant to Section 109(1)(H) of the Tax Code Code of 1997, as amended, ASSUMPTION of cafeterias/canteens, dormitories and bookstores located within the premises of ASSUMPTION COLLEGE, INC. are exempt from taxation provided they are owned and operated by it as ancillary services. institution are exempt from VAT. Moreover, revenues derived from assets used in the operation COLLEGE. INC.'s gross receipts from operations as a non-stock, non-profit educational

LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX income/receipts/revenues not expressly exempted and stated in the Certificate of Tax personal, or any activity conducted for profit, which income should be returmed for taxation, unless said revenues are actually, directly and exclusively used for educational purposes. Exemption. Moreover, it is subject to the corresponding internal revenue taxes imposed under Tax Code of 1997, as amended, on its income derived from any of its properties, real or ASSUMPTION COLLEGE,INC.issubjecttoincometax all its

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

ASSUMPTION COLLEGE Page 3 of 3 Date issued CTE N S30H- 4 0 5 - 2 0 2 Z OCT72022

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

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

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

1) The honoraria/allowances given to members of the Board of Trustees must be reasonable and TAXPAYER DUTIES & RESPONSIBILITIES subject to liquidation.4

2) Required to file on or before the 15th day of the fourth month following the end of the 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 Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. accounting period a Profit and Loss Statement and Balance Sheet with the Annual Information Incorporation, manner of operation and activities as well as sources and disposition of income.

3) Under Section 235 of the Tax Code of 1997, as amended, any provision of existing general and 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. special law to the contrary notwithstanding, the books of accounts and other pertinent records

4) Further, it is also required under Section 6(C) in relation to Section 237 of the Tax Code of sale or transfer of merchandise or for services rendered which are not directly related to the activities for which the Association is registered.5 1997, as amended, to issue duly registered receipts or sales or commercial invoices for each

5) 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.

3 Republic Act No. 10963 increased the VAT threshold from P1,919,500.00 to P3,000,000.00 effective January 1, 2018 4 DOF Opinion No. 005-2019 5 Revenue Memorandum Circular No. (RMC) No. 76-2003