Question & AnswerQ&A (EXECUTIVE ORDER NO. 324)
Income received by non-stock, non-profit corporations as such organizations is exempt from income tax, but income from properties or any profit-conducted activities must be taxed.
Yes, their interest income from currency bank deposits and similar income are subject to a 20% final withholding tax, except interest from expanded foreign currency deposits which is subject to 7.5% final withholding tax.
Yes, if they have employees receiving compensation income or make income payments subject to withholding tax, they must act as withholding agents as required by the Tax Code and Revenue Regulations.
Paragraph 3, Section 4, Article XIV of the Constitution states that their revenues and assets actually, directly, and exclusively used for educational purposes are exempt from internal revenue taxes of the National Government.
Yes, provided these activities are owned and operated by the educational institution, are ancillary, and located within school premises.
Private educational institutions accredited by the Department of Education, Culture and Sports or the Commission on Higher Education are exempt from value-added tax on their educational activities but not on other activities involving sale of goods and services.
Yes, interest income used directly and exclusively for educational purposes is exempt from the 20% final tax and 7.5% tax on expanded foreign currency deposits subject to filing annual returns and compliance with certification requirements.
They must submit an annual information return, audited financial statement, bank certification of interest income not subject to withholding tax, certification of actual utilization, and board resolution on proposed projects funded by said income.
Yes, they are withholding agents for compensation income of employees and for income payments to others subject to withholding tax under Section 57 of the Tax Code.
Both must maintain books of accounts per Section 235 of the Tax Code, pay an annual registration fee of P500, and issue duly registered receipts or sales invoices for sales or services not related to their registered activities.