BIR Ruling No. 668-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH -0668 -202G

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that PRIMEX LAND, INC., with Taxpayer Identification Number (TIN)

is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project, Deca Homes Meycauayan -- Brgy. Saluysoy, City of Meycauayan, Bulacan, consisting of 5,180 house and lot units used solely for family home or dwelling purposes, located at Brgy. Saluysoy, City of Meycauayan, Bulacan, a proiect dulv registered with the Board of Investments (BOI)

years beginning from March 2020 or actual start of commercial operations/selling, whichever under Certificate of Registration No. dated March 12, 2020, for a period of four (4)

is earlier, but in no case earlier than the date of registration of the project with the 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 residentiai dwellings valued.at P3,199,200.00 and below, is Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal 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.

registered with the BOI, if any, including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. However, the sale of house and lot units in excess of the 5,180 house and lot units

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, for all other applicable taxes not discussed above.

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

that the facts are different, then this Certificate shall be considered null and void.

Issued this day of DEC 1 7 2020

arsal

CAESAR R. DULAY Commissioner of Internal Revenue K-1-MDT 038660

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

PRIMEX LAND, INC. (Deca Homes Meycauayan) Date issued: CTE No.: BOI-LEH-066 02

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1.. Th exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Deca Homes Meycauayan -- Brgy. Saluysoy, City of Meycauayan, Bulacan, consisting of 5,180 house and lot units used solely for

exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. family home or dwelling purposes, located at Brgy. Saluysoy, City of Meycauayan, Bulacan. Such Moreover, the 5,180 house and lot units covered by License to Sell No. shall not be sold

for more than P1,700,000.00 per house and lot.

2.In the computation of the project's ITH, the following shall apply:

Only income generated from the sale of housing units (Deca Homes Meycauayan -- Brgy. Saluysoy, City of Meycauayan, Bulacan) with selling price not exceeding Php2.0M and used solely for family home or dwelling purposes and not for commercial purposes such as leasing, retail stores, offices, etc. shall be qualified.

b Interest income from in-house financing shall not be considered as revenues generated

from the registered activity.

3. The Company's entitlement to ITH for its BOI-registered housing project is subject to the

compliance with the'provisions of the Specific Terms and Conditions of its BOI Registration.

Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the National Internal

the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of

incentives. VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may

Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. be provided under E.O. 226, within the periods prescribed under RA No. 10708's Implementing

5 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 subject to compensation withholding tax, amended, and implemented by Revenue Regulations (RR) No. 2-98, as amended. 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 National Internal Revenue Code of 1997, as

6. The Company is required to file on or before the 15th 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.

t

1 Finally, the Company's books of accounts and other pertinent records shall be subject to periodic

examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether

as amended. and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997. it is complying with the conditions under which it has been granted tax exemption or tax incentives

2 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies.

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