Certificate of Tax Exemption for Scholarship / SPES Requirements
Complete guide to BIR requirements for tax exemption certificates for scholarship and SPES beneficiaries in the Philippines
What you'll learn in this guide
This complete guide to Certificate of Tax Exemption for Scholarship / SPES walks you through the 5 key BIR requirements, the application process, and tips for securing your tax exemption certificate.
For other government document requirements, also see our DTI Business Name Registration Guide, BIR Business Registration Guide, and Barangay Business Permit Guide.
What is a Certificate of Tax Exemption for Scholarship / SPES?
Official BIR Document
A Certificate of Tax Exemption for Scholarship or Special Program for Employment of Students (SPES) is an official document issued by the Bureau of Internal Revenue (BIR) that exempts students and eligible individuals from certain tax obligations.
SPES Program Support
The SPES program, mandated under Republic Act No. 9547, aims to help poor but deserving students pursue their education by providing employment opportunities during summer and Christmas breaks.
Tax Exemption Purpose
This certificate ensures that the financial assistance or income you receive from scholarship programs or SPES employment is not diminished by withholding taxes.
Why Do You Need This Certificate?
Maximizes Financial Assistance
Your scholarship or SPES income remains intact without tax deductions
Simplifies Compliance
Eliminates the need to file tax returns for exempted income
Supports Education Goals
More funds available for tuition, books, and school supplies
Legal Protection
Provides official documentation of your tax-exempt status
Future Reference
Useful for future employment or scholarship applications
How to Apply: Step-by-Step Process
Step 3.1: TIN Verification
Before applying for the tax exemption certificate, ensure your Tax Identification Number (TIN) is active and verified. The BIR requires a valid TIN for all tax-related transactions.
How to verify your TIN:
- Visit the BIR website and use the online TIN verification tool
- Go to your nearest BIR Revenue District Office (RDO)
- Bring a valid ID for in-person verification
Step 3.2: Secure Barangay Certificate of Low or No Income
Obtain a Certificate of Low or No Income from your barangay captain. This document serves as proof that your income falls below the taxable threshold, making you eligible for the tax exemption.
Requirements from the barangay:
- Valid ID
- Proof of residence (barangay clearance or cedula)
- Affidavit of indigency (sometimes required)
- Processing fee (varies by barangay)
đź’ˇ Tips: Visit your barangay hall during office hours, bring photocopies of your documents, and allow 1-3 days for processing.
Step 3.3: Prepare Duly Notarized Affidavit of Low or No Income
This sworn statement provides a legal declaration of your financial situation. It must be notarized by a licensed notary public to be considered valid.
What to include in the affidavit:
- Your full name, age, and address
- Statement declaring your low or no income status
- Source of income (if any) and amount
- Declaration of truthfulness under penalty of law
- Signature and notarization
Where to get notarized:
- Barangay hall (some offer notary services)
- Law offices
- City hall notary section
- Private notary public
Cost: Typically ₱50-₱200 depending on the notary
Step 3.4: Prepare 2 Valid Government-Issued IDs
You need two valid government-issued identification cards for identity verification. Both IDs must be current (not expired) and contain your photo and signature.
Accepted government IDs:
- Passport
- Driver's License
- SSS ID
- PhilHealth ID
- UMID ID
- Postal ID
- Voter's ID
- PRC License (for professionals)
⚠️ Important reminders: Bring original IDs for verification, prepare photocopies (2 copies each), ensure names match across all documents, and check expiration dates before applying.
Step 3.5: Purchase Loose Documentary Stamp (₱30.00)
A Loose Documentary Stamp is required for certain BIR transactions. As of current guidelines, this stamp costs ₱30.00.
Where to buy:
- BIR offices
- Authorized banks
- Post offices
- Some accredited establishments
⚠️ What to remember: The stamp must be loose (not affixed to any document), keep it in a safe place until submission, handle carefully to avoid damage, and purchase only from authorized sellers.
Complete Application Checklist
Before heading to the BIR office, ensure you have all the following documents:
Where to Submit Your Application
Visit your nearest BIR Revenue District Office (RDO) that has jurisdiction over your place of residence or employment. Bring all your documents and ask for the Tax Exemption section.
Important Tips for a Smooth Application
Organize your documents
Arrange them in the order required by the BIR
Dress appropriately
Some BIR offices have dress codes
Arrive early
Beat the crowd and finish faster
Ask questions
Don't hesitate to clarify requirements with BIR personnel
Keep receipts
Secure all official receipts issued by the BIR
Follow up
If processing takes longer than expected, politely follow up
Common Mistakes to Avoid
Incomplete documents
Failing to provide all required documents can lead to delays or rejection of your application
Unnotarized affidavits
Submitting an affidavit that is not properly notarized will render it invalid
Expired IDs
Using expired government-issued IDs will not be accepted
Wrong BIR office
Applying at the wrong RDO can cause complications
Inconsistent information
Ensure all documents have matching personal details
Damaged documentary stamp
A torn or damaged stamp may not be accepted
Ignoring deadlines
Some scholarship programs have specific timelines for tax exemption submission
Frequently Asked Questions
Q: Can I apply for someone else?
A: Generally, personal appearance is required. However, you may be allowed to apply on behalf of a minor with proper authorization and documents.
Q: How long is the certificate valid?
A: The certificate is typically valid for the specific scholarship or SPES program period. Check with your program coordinator for exact validity.
Q: What if I lose my certificate?
A: You may request a replacement from the BIR, but this may require re-application or additional processing.
Q: Is this different from a Tax Exemption Certificate for senior citizens?
A: Yes, they are different certificates with different requirements and purposes.
Q: Can I use this for multiple scholarships?
A: This depends on the specific terms of your scholarship program. Some certificates may be program-specific.
Conclusion
The Certificate of Tax Exemption for Scholarship / SPES is a valuable document that helps Filipino students maximize their educational financial assistance. By preparing the five key requirements—TIN verification, Barangay Certificate of Low or No Income, Notarized Affidavit, Government IDs, and Documentary Stamp—you can secure this exemption and ensure that your scholarship or SPES income goes entirely to your education.
Remember to prepare all documents carefully, follow the correct procedures, and maintain copies for your records. This certificate not only provides financial relief but also represents the government's commitment to supporting the education and development of Filipino youth.
For the most current requirements and procedures, always consult with your local BIR office or your scholarship program coordinator, as policies may be updated periodically.