BIR Ruling No. 659-2017

REPUBLIGOF THF PHLIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: 559-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that AXEIA DEVELOPMENT CORP., with Tax Identification Number

is exempt from income tax and creditable withholding tax on its income received directly in connection with its project, The Cambria Phase 1, consisting of 416 housing units located at Brgy. Sto. Domingo, Bay, Laguna, a project duly registered with the of four (4) years beginning from April 2013 or actual start of commercial operations/selling. whichever is earlier, but in no case earlier than the date of registration of the project with the Board of Investments (BOI) under Registration No. dated April 17, 2013, for a period

BOI, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended.

below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended. Moreover, the sale by the Company of residential lot valued at P1.919,500.00 and

The grant of tax exemption herein is subject to the compliance with the provisions of applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable, however, to all other applicable taxes not enumerated above.

This Certificale of Tax Exemption is being issued on the basis of the facts and documents as represented and submitted. However, if upon investigation, the BIR ascertains that the facts are different, then this Certificate shall be considered null and void.

Issued this day of DEC_19 2017

Ms

K-1 Commissioner of Internal Revenue CAESAR R. DULA 011921

Page 2 of 2 Axeia Development Corp. Date issued_ 12-19-201? CTE No. 650-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

I. The cxemption from income and creditable withholding taxes covers oniy income directly revenues from units with selling price exceeding PhpI,250,000.00. attributable to the revenues generated from the project, The Cambria Phase 1 consisting of 416' units, located at Brgy. Sto. Domingo, Bay, Laguna. Such exemption shall not cover

2 The Company is obligated to construct and sell 416 low-cost mass housing units based on the

following schedules/sales revenues:

Year 1 Volume (No. of Units) 1O Value (Phn

Total 416 103 101 106

3. In the computation of the project's ITH, interest income from in-house financing shall not bc considered as part of the revenues generated from the registered housing project.

The Company's entitlement to ITH for its BOf-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

5.Pursuant to Section 4 of Republic Act (RA) No. 107083. the Company is required to file its tax VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be payment of taxes. returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax incentives. provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and

6. The Company shall be constituted as a withholding agent for the government if it acts as employer and any of its employees received compensation income subicct to compensation withholding tax, or if it makes payments to individuals or corporations subject to the withholding taxes as source as required under Chapter XIII and Section 57 of the Tax Code of 1997. as amended and implemented by Revenue Regulations (RR) No. 2-98. as amended.

7. The Company is required to file on or before the 1sth day of the fourth month following the close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during the taxable year.

8. Finally, the Company's books of accounts and other pertinent records shal! be subject to exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the Tax Code periodic examination by revenue enforcement officers of this Bureau for the purpose of of 1997, as amended. ascertaining whether it is compiying with the conditions under which it has heen granted tax

units. Thus. the exemption shall be limited only to the 416 units. While the HLURB License to Sell for the project covers 41 7 lots/units. its BOI Registration covers only 4 16 2 Per HLURB License to Sell issued for the project, the maximum selling price per iot/unit shall be at Investment Promotion Agencies. P1.250,000.00 3 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by