FICCO Mutual Benefit Association (FICCO MBA), Inc.

February 23, 2017 CERTIFICATE OF TAX EXEMPTION NO. 070-17 CERTIFICATE OF TAX EXEMPTION issued to FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. Corrales-Fernandez Sts., Cagayan De Oro City TIN 000-000-000 SEC Company Reg. No. CN200713117 This certifies that the above-named corporation has proven by actual operation that its primary purpose is one of those enumerated under Section 30 (C) of the National Internal Revenue Code of 1997, as amended. It is exempt from INCOME TAX only on the following revenues or receipts: 1. Membership Fees and Contributions -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 Certificate of Tax Exemption shall cover the above enumerated revenues received by the corporation from September 2, 2009, the date of its application for tax exemption, until June 30, 2015 when the corporation ceased its operation. This Certification 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 23rd day of February, 2017. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION FOR CORPORATIONS ORGANIZED & OPERATED AS BENEFICIARY SOCIETY, ORDER OR ASSOCIATION, OPERATING FOR THE EXCLUSIVE BENEFIT OF THE MEMBERS UNDER SECTION 30 (C) OF THE 1997 TAX CODE, AS AMENDED TAX EXEMPTIONS FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. is only exempt from the payment of income tax on revenues and receipts enumerated on the Certificate of Tax Exemption. Moreover, to be entitled to the tax exemptions enumerated herein, the association/corporation/organization must continue to meet the requirements set forth under Revenue Memorandum Order No. 20-2013. HEITAD LIABILITY FOR INTERNAL REVENUE TAXES 1) INCOME TAX FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. is subject to income tax on all its 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 National Internal Revenue Code of 1997, as amended, on its income derived from any of its properties, real or personal, or any activity conducted for profit regardless of the disposition thereof, which income should be returned for taxation. Likewise, interest income from currency bank deposits and yield or any other monetary benefits from deposit substitute instruments and from trust funds and similar arrangements, and royalties derived from sources within the Philippines are subject to the twenty percent (20%) final withholding tax: Provided, however, that interest income derived by it from a depository bank under the expanded foreign currency deposit system shall be subject to seven and one-half percent (7-1/2%) final withholding income tax pursuant to Section 27 (D) (1) in relation to Sec. 57 (A) both of the National Internal Revenue Code of 1997, as amended. 2) VALUE ADDED TAX If FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. is engaged in the sale of goods or services in the course of a business pursuit, including transactions incidental thereto, in general, it shall be liable for VAT. 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% VAT pursuant to Section 107 of the National Internal Revenue Code of 1997, as amended. (BIR Ruling No. 153-11 dated May 17, 2011) 3) WITHHOLDING TAX FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. shall be constituted as withholding agent 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 XIII, Title II of the NIRC, as implemented by Revenue Regulations No. 2-98, as amended, or if it makes income payments to individuals or corporations subject to the withholding tax pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended, and as implemented by Revenue Regulations No. 2-98, as amended. TAXPAYER DUTIES & RESPONSIBILITIES 1) FICCO MUTUAL BENEFIT ASSOCIATION (FICCO MBA), INC. is 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 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 disposition of income. Copy of this Certificate of Tax Exemption shall be attached to the aforementioned Annual Information Return. 2) Under Section 235 of the National Internal Revenue 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 it has been granted tax exemptions or tax incentives, and its tax liabilities, if any. 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 invoices for each sale or transfer of merchandise or for services rendered which are not directly related to the activities for which the Association is registered. (Revenue Memorandum Circular [RMC] No. 76-2003) 4) Finally, it is subject to the payment of registration fee of PhP500.00 as prescribed in Section 236 (B) of the National Internal Revenue Code of 1997, as amended.