BIR Ruling No. 328-2021

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: 11SH-3 28 - 2021

SEY T U 2021

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that LAK-K BUILDERS CO., an entity engaged by the National

Housing Authority (NHA). is exempt from project-related income taxes and creditable

withholding tax pursuant to Section 20(d)(1) of'Republic Act (RA) No. 7279, as amended by

RA No. 10884 (Baianced Housing Development Program Amendments) dated July 17, 2016.

on its income received directly in connection with the construction/development of 2,361

socialized housing units in Tabaco Housing Project Phases 1 & 2, located in Brgy. San

Vicente. Tabaco City, Albay, a socialized housing project of the NHA intended for families

affected by Typhoons Quinta. Rolly and Ulysses under the Build Back Better Task Force.

Moreover, the delivery of the 2,361 socialized housing units shall be exempt from

value-added tax (VAT) pursuant to Section 109(1)(P) of the National Internal Revenue Code

of 1997 (Tax Code), as amended, provided that the selling price thereof does not exceed P3.199.200.00' per house and lot package; provided further, that beginning January 1, 2021. the exemption from VAT shall only apply to sale of house and lot and other residential dwellings.

However, the purchases of goods/articies by LAK-K BUILDERS CO. shall be subject

is an indirect tax which can be passed on by the seller of the goods/services. lt shall be to VAT. even if the said purchases are to be used for the socialized housing project. since VAT understood that LAK-K BUILDERS CO. must issue VAT-exempt official receipts on its gross receipts from the said socialized housing project.

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

Issued this day of_ SF? 1 3 2021

AC ITAOA

K- Commissioner of Internal Revenue CAESAR R. DULAY 045527

M

2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 1, 2021 pursuant to RA No. 10963. 1 As adjusted using the 2010 Consumer Price Index values per Revenue Regulations No. 8-2021