Summary
RMC No. 24-2016 reiterates Department of Finance Order No. 149-95 on requirements for non-stock non-profit educational institutions.
Key points
- Annual documents. These institutions submit annually to the Revenue District Officer (RDO), with the annual information return and duly audited financial statement, three documents: a depository bank certification of interest income earned from passive investments not subject to the 20% final withholding tax under Section 24(e) of the Tax Code, as amended; a certification of actual utilization of that income; and a Board Resolution by the school administration on proposed projects funded from money deposited in banks or placed in money markets.
- Examples of projects. Such projects include construction or improvement of school buildings and facilities, and acquisition of equipment, books and the like.
- RDO audit. The RDO audits the annual information return to check compliance with the conditions of the certificate of exemption and any tax liabilities.
Who is affected
- Non-stock non-profit educational institutions
Deadlines and effectivity
- Submission: annually, with the annual information return and audited financial statement
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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