Homegrown CORPORATION

Restrictive Educational Institutions (PEIs) and Hospitals. The standards pertinent to conventional
enterprises will likewise apply to exclusive instructive establishments and emergency clinics which are
not-for-profit, EXCEPT the accompanying:

1. Dependent upon SPECIAL INCOME TAX RATE gave under Section 27(B) of the Tax Code as corrected
by RA 11534 - CREATE Law:

➔ Restrictive instructive organizations and emergency clinics which are not-for-profit will pay an
expense of 10% (10%) on their available pay. Given that starting July 1, 2020 until June 30, 2023, the
expense rate in this forced will be one percent (1%).

➔ Given, further, that if the gross pay from irrelevant exchange, business, or other movement surpasses
50% (half) of the complete gross pay inferred such instructive establishment or clinics from all sources,
the expense will either be 20% or 25%, as recommended in Section 27(A) of the Tax Code, as revised by
Create Act, will be forced on the whole available pay.

➔ Inconsequential TRADE, BUSINESS, OR OTHER ACTIVITY - is a movement which isn't considerably

identified with the activity or execution of the school or clinic's main role or capacity.

Outline DOMESTIC CORPORATIONS

Restrictive and instructive foundations; and Nonprofit emergency clinics

TRAIN LAW: 10%

Make ACT:

July 1, 2020 to June 31, 2023: 1%

Starting July 1, 2023: 10%

2. PEIS are NOT SUBJECT TO MCIT

3. CAPITAL EXPENDITURES for extension of school offices may not be promoted however rather
guaranteed as OUTRIGHT EXPENSE. This standard will not matter, in any case, to a non benefit medical
clinic.

Uncommon principles on Capital Expenditures of Proprietary Educational Institutions:

The available pay of an exclusive instructive foundation is registered in a similar way as a standard
homegrown company.

➔ To deduct use in any case considered as capital costs of depreciable resources caused during the
available year like capital uses for the extension of school offices; or

➔ To underwrite such use and guarantee derivation from gross pay for a recompense for devaluation
thereof.

Relevant INCOME TAX OF EDUCATIONAL INSTITUTIONS IN THE PHILIPPINES

Instructive Institutions

Customary Income

Easy revenue

Capital Gains

Restrictive Educational Institutions

For the most part 10% or 1% of net gain (Special Corporations)

Assuming inconsequential pay is higher than related pay:

TRAIN Law: 30%

Make Act: 20% or 25%

FWT

CGT

Non-Stock Non-Profit instructive organizations (NSEIs)

Philippine Constitution, Art. XIV, Sec. 4(3):

All incomes and resources of non-stock, non-benefit instructive organizations utilized really,
straightforwardly and solely for instructive purposes will be excluded from duties and obligations; and

Absolved under Sec. 30, NIRC.

The accompanying

FWT

CGT