BIR Ruling No. 665-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-0 665 -2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

creditable withholding tax on its income received directly in connection with its economic and Taxpayer Identification Number (TIN) This certifies that 8990 HOUSING DEVELOPMENT CORPORATION, with is exempt from income tax and

low-cost housing project, Deca Homes Talomo Phase i and Phase 2 -- Brgy. Bago Gallera, Talomo Dist., Davao City, consisting of 3,1841 house and lot units used solely for family

or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than duly registered with the Board of Investments (BOD) under Certificate of Registration No. 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 home or dwelling purposes, located at Brgy. Bago Gallera, Talomo Dist., Davao City, a project Revenue Regulations (RR) No. 2-98, as amended. dated March12, 2020, for a period of four (4) years beginning from March 2020

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is exempt from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal exemption from VAT shall only apply to sale of house and lot and other residential dwellings? Revenue Code of 1997 as amended. Provided, however, that beginning January 01, 2021, the

with selling price of not more than P2,000,000.00.

the National Internal Revenue Code of 1997, as amended. 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 However, the sale of house and lot units in excess of the 3,184 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 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

1eranue

K-1-MDT Commissioner of Internal Revenue CAESAR R. DULAY 038652

2 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to RA No. 10963. 1 Covered by Certificate of Registration (COR) No. 27588 and the following Licenses to Sell (LTS) issued by the Housing and Land Use Regulatory Board (HLURB): LTS No. LTS No. Deca Homes Talomo Phase 1 Deca Homes Talomo Phase 2 Total 3,184 house and lot units 1.766 house and lot units 1,418 house and lot units

8990 HOUSING DEVELOPMENT CORPORATION (Deca Homes Talomo Phase 1 and Phase 2) CTE No.: Date issued: BOI-LEH-0665-2-020

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

Solely for family home or dwelling purposes, located at Brgy. Bago Gallera, Talomo Dist., Davao The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Deca Homes Talomo Phase 1 and Phase 2 -- Brgy. Bago Gallera, Talomo Dist., Davao City, consisting of 3,184 house and lot units used City. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 3,184 house and lot units covered by License to Sell Nos. and 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 Talomo Phase 1 and Php2.0M and used solely for family home or dwelling purposes and not for commerciai Phase 2 -- Brgy. Bago Gallera, Talomo Dist., Davao City) with selling price not exceeding 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 housingproject is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

4 Pursuant to Section 4 of Republic Act (RA) No. 107083, the Company is required to file its 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 be provided under E.O. 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. 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

5.The Company shall be constituted as a withholding agent for the government if it acts as employer 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 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.

The Company is required to file on or before the 15th day of the fourth month following the close Information Return under oath, stating its gross income and expenses incurred during the taxable of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual

year.

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

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

as amended.

3 An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by Investment

Promotion Agencies.

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