BIR Ruling No. 345-2020

REPUBLICOF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: -L-0345-2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

LANCASTER VILLAGE PHASE 1, consisting of 390 house and lot units used solely for family home or dwelling purposes, located at Brgy. San Sebastian, Kawit, Cavite, a project July 29, 2010, for a period of 4 years beginning from August 2010 or actual start of commercial withholding tax on its income received directly in connection with its low-cost housing project, duly registered with the Board of Investments (BOI) under Registration No. 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 No. 2-98, as Identification Number amended. 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 Moreover, the sale by the Company of residential lots valued at P1,919,500.00 and

VAT-exempt under Section 109(1)(P) of the 1997 Tax Code, as amended.Provided,however.

and other residential dwellings' with selling price of not more than Two Million Pesos that beginning January 1, 2021, the VAT exemption shall apply only to sale of house and lot (P2,000,000.00).

including those units used for commercial purposes such as leasing, retail stores, offices, etc., shall be subject to the applicable taxes under the 1997 Tax Code, as amended.] The sale, however, of house and lot units in excess of the 390 house and lot units,

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

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. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this day of JUN 2 5 2020

1eg

Commissioner of Internal Revenue CAESAR R.DULAY

K 75546

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

Page 2 of 2 Property Company of Friends, Inc. CTENo. Tho(-Lel - 0 3 45 - 2 0 2 3 Date issued JUN 2 5 2020

1. The exemption from income and creditable withholding taxes covers only income directly The Company is obligated to construct and sell 390 house and lot units based on the following schedules/sales revenues: attributable to the revenues generated from the project, LANCASTER VILLAGE PHASE Such exemption shall not cover revenues from house and lot units with selling price exceeding 1, consisting of 390 house and lot units located at Brgy. San Sebastian, Kawit, Cavite. P3,000,000.00. OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

Total Year 3 2 4 1 Volume (No. of Units) 3 0 97 9 9 Value (PhP 000) 153,800 153,800 618,300 156,900 153,800

3.The Company shall adhere to the following selling price as represented:

Total House and Lot Lot Price House Cost P1,400,000 P926,000 Colleen 474,000 [Haven P1,700,000 P1,140,000 560,000

9. 8. 4. In the computation of the project's iTH, interest income from in-house financing shall not be 5 6. Finally,the -Company's books of accounts and other pertinent records shall be subject to exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the Tax Code close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual 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 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 The Company is required to file on or before the i5th day of the fourth month following the Information Return under oath, stating its gross income and expenses incurred during the of 1997, as amended. taxable year. Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its tax 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 R.A. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98, as amended. 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. returns and pay its tax liabilities, on or before the deadline as provided under the 1997 Tax 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.

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