Caliboso, Daysie C.

BSBA-MM2

1. HOW TAX EXEMPTION?

- Ang tax exemption ay ang karapatang ibukod ang lahat o ilang kita mula sa pagbubuwis ng mga
pederal o estadong pamahalaan. Para mag-apply para sa tax exemption, kailangan mong
malaman ang mga partikular na form ng tax exemption na kakaiba sa iyong uri ng negosyo.
- Kapag naisama na, ang mga nonprofit at iba pang organisasyon ay maaaring mag-aplay para sa
tax exemption sa pamamagitan ng paghahain ng IRS Form 1023 sa IRS sa loob ng 27 buwan
pagkatapos ng pagsasama. Ang artikulong ito ay naglalaman ng isang hakbang-hakbang na
proseso ng pag-aaplay para sa tax exemption.
- The BIR is the one who giving tax exemption
- A corporation claiming tax exemption must be able to show clearly that it is organized and
operated for the purposes under Section 30 of the NIRC

2. WHAT ARE THE PROCESS TO AVAIL TAX EXEMPTION FROM THE GOVERNMENT?
 For Non-Stock, Nonprofit Educational Institutions
- Original copy of the application letter for the issuance of Tax Exemption Ruling
- Certified True Copy of the Certificate of Good Standing issued by the Securities and
Exchange Commission
- Original copy of the Certification under Oath of the Treasurer as to the amount of the
income, compensation, salaries or any emoluments paid to its trustees, officers and other
executive officers
- Certified True Copy of the Financial Statements for the last three years
- Certified True copy of government recognition/permit/accreditation to operate as an
educational institution issued by the Commission on Higher Education (CHED), Department
of Education (DepEd), or Technical Education and Skills Development Authority (TESDA);
- If the government recognition/permit/accreditation was issued five years prior to the
application, an original copy of a current Certificate of Operation/Good Standing or other
equivalent document issued by the appropriate government agency (CHED, DepEd, or
TESDA) shall be submitted as proof that it is operating as non-stock and nonprofit
educational institution
- Original copy of the Certificate of Utilization of Annual Revenues and Assets by the
Treasurer or his equivalent of the non-stock and nonprofit educational institution

3. WHO CAN BE GRANTED?

 Individuals with no income, minimum wage earners, and those whose taxable income does not
exceed PHP 250,000.
 For example is si PEDRO at PEDRA are they both individual. But, PEDRO is taxable meaning mas
mataas ang ranko ni PEDRO kay PEDRA. So PEDRA is minimum wage earners, PEDRA is tax
exempt kasi nga minimum lang ang siya and PEDRO is taxable because manager siya so mas
mataas ang sahod niya and di siya pasok sa exemption.
 Cooperatives registered in the Cooperative Development Authority (CDA) which transact
business with members only.
Example are mga magsasaka, mangingisda, mga katutubo, with person with disabilities, mga
driver at iba pa.
 CDA-registered cooperatives which transact business with members and non-members, with
accumulated reserves and undivided net savings of not more than PHP 10 million.
 Non-stock, nonprofit educational institutions.
 Non-stock, nonprofit corporations that fall under Section 30 of the National Internal Revenue
Code