BIR Ruling No. 004-2022

BUREAU OF INTERNALREVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: 301-LEH-0-2022

TO ALL WHOM IT MAY CONCERN CERTIFICATE OF TAX EXEMPTION

years beginning from January 2020 or actual start of commercial operations/selling, Investments Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, and lot units used solely for family home or dwelling purposes, located at Brgy. Pulong Buhangin, Sta. Maria, Bulacan, a project duly registered with the Board of Investments (BOI) whichever is earlier, but in no case earlier than the date of registration of the project with the BOI, pursuant to Executive Order (EO) No. 226, otherwise known as the "Omnibus Camella Sta. Maria -- Brgy. Pulong Buhangin, Sta. Maria, Bulacan, consisting of 532 house under Certificate of Registration No. as amended. its income received airecuy in connection with its economic and low-cost housing project. Number (TIN) This certifies that COMMUNITIES BULACAN, INC. with Taxpayer Identification is exempt from income tax and creditable withholding tax on dated December 26,2019, for a period of 4

shall only apply to sale of house and lot and other residential dwellings' with selling price of not more than P3,199,200.002. 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 Revenue Code (Tax Code) of 1997, as amended. Provided, however, that beginning January 01, 2021, the VAT exemption Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

registered with the BOI, (per HLURB License to Sell Nos. 693 units), 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 Tax Code of 1997. as amended. However, the sale of house and lot units in excess of the 532 house and lot units and the excess is

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. 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 JAN 1 a 2022

1asar

K-1-GPS Commissioner of Internal Revenue CAESAR R.DULAY 048452. 4

2 As adjusted using the 2010 Consumer Price Index values pursuant to RR No. 8-2021 dated June I1, 2021. Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963.

Camella Sta. Maria CTENo.Dj-LEi-004=2D22 page 2 of 2 Date issued_jAN12B22

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

l. The exemption from income and creditable withholding taxes covers only income directly or dwelling purposes located at Brgy. Pulong Buhangin, Sta. Maria, Bulacan. Such exemption attributable to the revenues generated from the project, Camella Sta. Maria - Brgy. Pulong shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 516 house and lot units covered by License to Sell No. P1,700,000.00 per house and lot. Buhangin, Sta. Maria, Bulacan, consisting of 532 house and lot units used solely for family home shall not be sold for more than

2..The enterprise shall observe the following project timetable:

Activity Period

Land Acquisition Secure necessary license/permit/registration from the government/training costs September 2017 to September 2019 May 2017

Start of Commercial Operations Site preparation and development Building/House construction November 2017 to December 2028 May 2018 to January 2029 January 2020

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.

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. 107083, the Company is required to file its tax

returns and pay its tax liabilities, on or before the deadline as provided under the Tax Code of 1997.

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 provided under EO No.

226, within the periods prescribed under RA No. 10708's 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 tax,

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 Tax Code of 1997, as amended, and implemented

by RR No. 2-98, as amended.

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.

Finaily, the Company's books of accounts and other pertinent records shall be subject to periodic 8.

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 TaxCode of 1997, as amended.

An Act Enhancing Transparencyin the Management and Accoumting of Tax Incentives Administered-b

Promotion Agencies.