John Tiu Ka Cho (JTKC) Memorial Scholarship Foundation, Inc.

October 19, 2009 BIR RULING [NSNP-(S30E-135) 657-09] Section 30; BIR Ruling No. S30-080-2007 John Tiu Ka Cho (JTKC) Memorial Scholarship Foundation, Inc. 130 Amorsolo St. Legaspi Village, Makati City Attention: Mr. Oscar S. Guzman Corporate Secretary Gentlemen : This refers to your letter dated September 8, 2009 requesting for tax exemption. Documents show that you are a non-stock, non-profit charitable corporation. You are registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 165811 dated July 12, 1989. Your primary purpose is ". . . to provide college scholarships and educational assistance to deserving children of the employees of JTKC Realty Corporation, or its affiliate companies, as identified by the Corporation for this purpose in the fields of mechanical engineering, electrical engineering and chemical engineering as well as to provide training and development of human resources; to provide scholarships, fellowships and other similar educational grants to deserving students or professionals, and to establish, endow and support professorial chairs in the fields of mechanical, electrical and chemical engineering and other allied sciences". In reply, please be informed that under Section 30 (E) of the Tax Code of 1997, as amended, a non-stock corporation or association organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or for the rehabilitation of veterans, no part of its net income or asset shall belong to or inure to the benefit of any member, organizer, officer or any specific person is exempt from income taxation. ADaEIH Accordingly, as a non-stock, non-profit charitable organization, you are exempt from tax on all revenues derived in pursuance of your purpose as a charitable organization and used actually, directly and exclusively for charitable purposes. However, you are subject to internal revenue taxes on income from other activities the conduct of which is not related to the exercise or performance of your purposes or functions. Moreover, you are subject to the corresponding taxes imposed under the Tax Code of 1997, as amended, on your income derived from any of your properties, real or personal, regardless of the disposition thereof, which income should be returned for taxation. Likewise, interest income from your currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements received by you, and royalties derived from sources within the Philippines are subject to the 20% final withholding tax: provided, however, that interest income derived by you from a depository bank under the expanded foreign currency deposit system shall be subject to 7-1/2% final withholding tax pursuant to Section 28 (A) (7) (a), in relation to Section 57 (A), both of the Tax Code of 1997, as amended. Moreover, as a tax-exempt organization, you should file an annual information return on or before the 15th day of the 4th month following the end of your taxable year. Under Section 235 of the Tax 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 organizations or grantees of tax incentives shall be subject to examination by the BIR for purposes of ascertaining compliance with the conditions under which they have been granted tax exemptions or tax incentives, and their tax liabilities, if any. HOWEVER, this ruling is subject to the following conditions: 1) that you cause the amendment of your Articles of Incorporation to include the following provisions: (a) no part of your net income shall inure to the benefit of any of your members, (b) the trustees do not receive any compensation, and (c) in case of dissolution, your assets shall be transferred to a similar institution or to the government; and 2) submit photocopy of your Annual Information Returns and Financial Statements (balance sheet) for the past three (3) years in compliance with Revenue Memorandum Circular No. 14-2001. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service