BIR Ruling No. 475-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No

FSH-0475-2620

CERTIFICATE OF TAXEXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that MASAITO DEVELOPMENT CORPORATION, with Taxpayer's

tax (CWT) pursuant to Section 20 of Republic Act (RA) No. 7279, as amended by RA No. 10884 Identification Number (TIN) is exempt from income tax and creditable withholding

(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 to qualified beneficiaries in Masaito

purposes, located at Brgy. San Agustin, Trece Martires City, Cavite, a project duly registered with the Homes Trece Phase 3, consisting of 935 house and lot units, used solely for family home or dwelling

Housing and Land Use Regulatory Board (HLURB) under Certificate of Registration No. and

License to Sell No. , provided that the ceiling price per house and lot package does not exceed P450,000.00.

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or

Section 109(1)(P) of the 1997 Tax Code, as amended. Provided, however, that beginning January 1 house and lot and other residential dwellings valued at P3,199,200.00 and below, is VAT-exempt under

2021, the VAT exemption shall only apply to sale of house and lot and other residential dwellings' with selling price of not more than Two Million Pesos (P2,000,000.00).

developer/seller shall be liable to pay the documentary stamp tax on the documents conveying the Section 6 (E) of the same Code, whichever is higher. Likewise, lots/units classified as Economic Housing, not being covered by R.A. No. 7279, shall be subject to the payment of appropriate taxes. the tax exemption clause in Section 20 of RA No. 7279. Such being the case, the owner/project properties imposed under Section 196 of the Tax Code of 1997, as amended, based on the consideration contracted to be paid for such realties or on their fair market value determined in accordance with It is observed, however, that documentary stamp tax (DST) is not one of the taxes covered by

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

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

Issued this day of AUG 2 0 2020

1oesamra

K-1-JAC Commissioner of Internal Revenue CAESAR R.DULAY 036326

1 Sale of lot only,regardless of the price, shall be subject to VAT starting January 01,2021 pursuant to RA No.10963.

Page 2 of 2 MASAITO DEVELOPMENT CORPORATION CTENo.P-075-22 Date issued AUG 2 0._2020

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 935 socialized house and lot units in Masaito Homes Trece Phase 3, with selling price not exceeding P450,000.002

per house and lot package, located at Brgy. San Agustin,Trece Martires City,Cavite

2. 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 BIR during the processing of the Certificate Authorizing Registration (CAR) for

the transfer of the title of the socialized housing unit.

3.It is understood that the Certificate Authorizing Registration (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.

4 List of non-saleable lots per HLURB License to Sell No. , granted by the HLURB,

Southern Tagalog Region, to wit:

Community Facilities Community Facilities Parks/Playground Parks/Playground Excluded Lots Description All Roads Easement Alleys Block No. 26 44 40 44 45 1 (portion area = 527.25 m2) Lot No. 1&2 1 to 7

2 Per HLURB License to Sell No.