BIR Ruling No. 354-2018

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

Certificate of Tax Exemption No: 18

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

period of four (4), years beginning from June 2016 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 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. creditable withholding tax on its income received direcuy in connection with its economic and low-cost housing projectGrand Monaco- Bellevue2- Sunset Drive, Brookside Drive, Brookside Subdivision Brgy. San IsidroCainta Rial, a project duly registered with the Board of Investments (BOI) under Registration No. Subdivision, Brgy. San Isidro, Cainta, Rizal, consisting of 62 housing units located at Sunset Taxpayers Identification Number (TIN) This certifies that GRAND MONACO ESTATE DEVELOPERS, INC., with is exempt from income tax and dated June 03,2016.for a

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 National Internal Revenuc Code of 1997, as amended. Moreover, the sale by the Company of residential lot valued at P1,919.500.00 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. 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. payment of appropriate taxes under the National Internal Revenue Code of 1997, as amended. 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 However, the sale of units in excess of 62 residential units shall be subject to the day of MAR G 8 2018

ua

-K-I-LMAT Commissioner of Internal Revenue CAESAR R. DULAY

014166

GRAND MONACO ESTATE DEVELOPERS, INC Grand Monaco-Bellevue 2 CTE No. Date issued 3-8-201 354-2018

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1.The exemption from income and creditable withholding taxes covers only income directly

attributable to the revenues generated from the project, Grand Monaco -Bellevue 2-- Sunset Drive, Brookside Subdivision Brgy. San Isidro, Cainta Rizal, consisting ot 62 housing units, located at Sunset Drive, Brookside Subdivision, Brgy. San Isidro, Cainta, Rizal. Such exemption shall not cover revenues from units with selling price exceeding P3,000,000.00.

2 The Company is obligated to construct and sell 62 housing units based on the following

schedules/sales revenues:

Year (No. of Units Volume Value (Php)

2 3 22 28

Total 4 62 3

3 In the computation of the project's ITH, interest income from in-house financing shall not be

considered as part of the revenues generated from the registered housing project.

4 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.

5. Pursuant to Seotion 4 of Republic Act (RA) No. 10708', the Company is required to file its tax

based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be provided under E.O. 226, within the periods prescribed under RA No. 10708's returns and pay its tax liabilities, on or before the deadline as provided under the National of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income- Internal Revenue Code of 1997, as amended, using the electronic system for filing and payment

Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016.

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 subject to compensation withholding taxes as source as required under Chapter XIII and Section 57 of the National Internal Revenue Code of 1997, as amended, and implemented by Revenue Regulations (RR) withholding tax, or if it makes payments to individuals or corporations subject to the No. 2-98, as amended.

1 The Company is required to file on or before the 15t 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 shall be subject to

periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it is complying with the conditions under which it has been granted tax exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the National Internal Revenue Code of 1997, as amended.

An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Adninistered by Investmcnt Promotion Agencies.

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