BIR Ruling No. 640-2020

BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: PSH-0640-22

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

price of said units does not exceed P450,000.00' per house and lot. a project duly registered with the Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. Identification Number (TIN) withholding tax (CWT) pursuant to Section 20 (d) (1) of Republic Act (RA) No. 7279, as amended by RA No. 10884 (Balanced Housing Development Program Amendments) dated July 17, 2016, on its income received directly in connection with its sale of socialized house and lot units for residential and dwelling purposes to qualified beneficiaries in Villa Lara - Phase 2C Subdivision, consisting of 204 house and lot units, located at Jubay, Lilo-an, Cebu, This certifies that KENRICH DEVELOPMENT CORPORATION with Taxpayers and License to Sell No. is exempt from income tax and creditable , provided that the selling

below, or house and lot and other residential dwellings valued at P3, 199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internall Revenue Code of 1997, as amended. Provided, however, that beginning January 01, 2021, the exemption from VAT shall only apply to sale of house and lot and other residential dwellings with selling price of not more than P2,000,000.00. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

being covered by RA No. 7279, shall be subject to the payment of appropriate taxes. 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. covered by the tax exemption clause in Section 20 of RA No. 7279. Thus, the documents the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liable, however, for other applicable taxes not discussed above. conveying the properties shall be subject to DST imposed under Section 196 of the National for such realties or on their fair market value determined in accordance with Section 6 (E) of Internal Revenue Code of 1997, as amended, based on the consideration contracted to be paid This Certificate of Tax Exemption is being issued on the basis of the facts and Issued this The grant of tax exemption herein is subject to the compliance with the provisions of It is observed, however, that documentary stamp tax (DST) is not one of the taxes day of_NOV 19 2

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-K-1-LMAT Commissioner of Internal Revenue CAESAR R. DULAY 037939

Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. Per HLURB License to Sell No. dated September 12, 2017.

KENRICH DEVELOPMENT CORPORATION (Villa Lara- Phase 2C) Date issued: CTE No.: NOV 19 223 PSH--20

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

1. The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the 204 socialized house and lot units in Villa Lara -- Phase 2C Subdivision, located at Jubay, Lilo-an, Cebu.

The developer shall submit the sworn statement of the buyer that he is eligible as a socialized housing beneficiary under Section 5 (A) of Revenue Regulations (RR) No. 11-97 to the Bureau (CAR) for the transfer of the title of the socialized housing unit. of Internal Revenue (BIR) during the processing of the Certificate Authorizing Registration

3 It is understood that the CAR shall only be issued after it is established upon proper verification

by the Revenue District Officer (RDO) concerned that, considering the rules on valuation of real property, the actual selling price per sale transaction of the socialized house and lot packages in this case does not really exceed P450,000.00.

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