DAGUPAN CITY –There is only one school here that is operating as a non-stock, non-profit educational institution, which is duly exempted from paying business tax, according to One Stop Business Center manager Carmen Q. Olpindo.
Olpindo identified the institution as the Colegio De Dagupan “whose Articles of Incorporation is duly registered at the Securities and Exchange Commission,” she said.
Olpindo, however, clarified that Colegio De Dagupan is not exempted from paying regulatory fees such as mayor’s permit and sanitary permit, which is different from business tax and the operation of its canteen which has a gross sale of P3, 106,618 and an annual business tax of P18, 639.72.
Recently, three schools questioned the city government’s continued imposition of business tax on their institutions despite a tax exemption given them by the Department of Finance.
They cited Section 28(3), Article VI of the 1987 Constitution which provides that “charitable institutions, churches and parsonages or convents appurtenant thereto, non-profit cemeteries, and all lands, buildings and improvements, actually, directly and exclusively used for religious, charitable or educational purposes shall be exempt from taxation.”
Olpindo opined that educational institutions, which are only non-stock and non-profit, are exempted from paying the business tax.
“University of Luzon in their Articles of Incorporation is not a non-stock, non-profit institution that is why we asked them to pay their business tax of around P877, 127.36 based on their declared gross receipts or sales of P116, 950,048 in 2010,” she said.
University of Pangasinan, which is also not a non-stock, non-profit has declared a gross receipt or sale of P289, 055,172. Its annual business tax is P2, 167,913.80 and is paying a quarterly tax of P541, 978.45.
The Lyceum Northwestern University declared a gross receipt/sale of P36, 006,084.15 with an annual business tax of P270, 045.64 or quarterly tax of P67, 511.41. (CIO)