BIR Ruling No. 629-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 629-20 17

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

June 10, 2015, for a period of 3 years beginning from June 2015 or actual start of commercial withholding tax on its income received directly in connection with its project, Monticello Villas Phase 2, consisting of 595 units located at Brgy. Balabag, Pavia, Iloilo City, a project 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 Identification Number duly registered with the Board of Investments (BOI) under Registration No. Investments Code of 1987". This certifies that PROPERTY COMPANY OF FRIENDS, INC., with Tax is exempt from income tax and creditable dated

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 1997'Tax Code, as amended. Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

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

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 DEC 1 9 2017

a

K-1 Commissioner of Internal Revenue CAESAR R. DULAY 0119 8 3

Page 2 of 2 Property Company of Friends, Inc. Date issued 12 19-2017 CTE No. 629-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withhoiding taxes covers only income directly revenues from units with selling price exceeding P1,250,000.00. of 595 units, located at Brgy. Balabag, Pavia, Iloilo City. Such exemption shall not cover attributable to the revenues generated from the project, Monticello Villas Phase 2 consisting

2. The Company is obiigated to construct and sell 595 housing units based on the following schedules/sales revenues:

Year 2 (No. of Units) Volume 238 179 Value{PhP}

Total 5 5 178

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 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 1997 Tax payment of taxes. provided under E.O. 226, within thirty (30) days from the deadline for filing of tax returns and Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax incentives VAT and duty exemptions, deductions, credits or exclusions from the tax base, as may be

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 Tax Code of withholding tax, or if it makes paymcnts to individuals or corporations subject to the 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98. as amended

7. 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.

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 of 1997, as amended. 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 Tax Code

1 The maximum selling price is F 2 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment Promotion Agencies. per house and lot pursuant to HLURB License to Setl No.