Taxation of nonstock, nonprofit organizations
Exclusively not for profit: Taxation of nonstock, nonprofit organizations
June 06, 2011
Ballroom, Dusit Thani Hotel
Nonstock, nonprofit organizations (NSNPs) are created to achieve specific purpose other than generating profit. Though labeled as “tax exempt corporations”, their tax exemption is not absolute. Moreover, they are required to comply with regulatory requirements of the BIR and other government agencies to continue to fully enjoy their tax exemption and other privileges.
This seminar discusses the rules on the taxation of NSNPs – when are they exempt and when they become taxable. It likewise discusses the requirements for tax exemption of NSNPs and conditions that must be satisfied to maintain their tax exempt status. Issues relating to tax treatment of specific items of income or activity of NSNPs shall also be dealt with in the seminar.
The seminar will cover.....
I. Non-stock, non-profit organizations (NSNPs)
1. Nature, rationale and classification
2. Relevantlaws and regulations
3. Setting up a NSNP
II. Income tax exemption
1. Scope of income tax exemption
- Income from core activities
- Income from real and personal properties and proprietary activities
- Passive income (i.e., interest from bank deposits, dividends, etc.)
2. Securing tax-exempt status
- 3-year operation rule and other conditions
- Documentary requirements
- Maintenance and renewal of registration
3. Special issues on income tax of NSNPs
- Establishing proprietary nature of educational institutions and hospitals
- Contributions to perpetual care fund (Memorial Parks)
- Receipts of association dues, membership fees, power and water collections and other assessments/charges (Condominium Corporations and Homeowner’s Association)
III. VAT and other tax liabilities
1. Value-Added Tax (VAT)
- Local purchase and importation of goods and services
- Sale of goods and service for profit and incidental transactions
- Contributions and donations
- Transfer of land and common areas (condominium corporations)
2. Percentage Tax (PT)
3. Documentary Stamp Tax (DST)
4. Local Tax
IV. Donations to NSNPs
1. Donor’s tax exemption
2. Deductibility of donations
- Utilization, substantiation and other requirements
3. Accreditation and registration as donee institution
- PCNC accreditation process
- Securing BIR certificate of registration as qualified donee institution
- Renewal, withdrawal and revocation of certificate of accreditation and BIR registration
4. Compliance requirements
- Issuance of notice and certificate of donation
; V. Tax filing and other compliance obligations
1. Filing of annual income tax return and/or AIR
2. Withholding tax obligations
- As employer and income payor
- Filing and reportorial requirements
VI. Handling BIR audit
1. Examination of ITR, books of accounts, and AIR
2. Common audit findings
Please download the registration form from the “Events and Seminars” section in the link below.
The registration fee is:
• P9,500.00 plus 12% VAT – includes handouts, snacks, lunch and CPE accreditation.
• 5% discount if paid by May 30, 2011.
• P&A Tax Partners/Managers
This tax seminar is recommended for tax compliance officers, tax accountants, controllers, and legal officers who handle their company’s tax compliance requirements.