BIR Ruling No. 611-2017

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: 1--14-307 511-7017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that 8990 HOUSING DEVELOPMENT CORPORATION, with T'ax

Identification Number (TIN) is exempt from income tax and creditable

withholding tax on its income received directly in connection with its low-cost housing project. Deca Homes Baywalk - Talisay II, Dumlog, Talisay City, Cebu. consisting of 881 housing units located at Talisay I1. Dumlog. Talisay City, Cebu, a project duly registered with the Board of Investments (BOl) under Registration No. dated October 08. 2014. for a period of 3 years beginning from October 2014 or actual start of commerciai 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.

Moreover, the sale by the Company of residential lot valued at P1,919.500.00 and beiow, 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 of 1997. as amended.

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

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 ofDEC 1 4 217

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TK-I-VDPM / LMAT Commissioner of Internal Revenue CAESAR R. DULAY 011732

8990 HOUSING DEYELOPMENT CORPORATION (Deca Homes Baywalk - Talisay I CTE NO. Date issued 611-2C i7 14-201

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption from income and creditable withholding taxes covers only income directly attributable to the revenues generated from the project, Deca Homes Baywalk - Talisay li, price exceeding P3.000.000.00. Moreover, the 881 housing units covered by license to Sell Dumlog, Talisay City, Cebu, consisting of 881' housing units located at Talisay I1. Dumlog. Talisay City. Cebu. Such exemption shall not cover revenues from housing units with selling No. for lot oniy. shall not be sold for more than P1.250.000.00 per house and lot and P500.000.00

2. The Company is obligated to construct and sell 881 housing units based on the following schedules/sales revenues:

Year Total 3 2 (No. of Units) Volume 309 16 881 456 Value (Php '000)

3 In the conputation 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 BO1-registered housing project is subject to the conpliance with the provisions of the Specific Terms and Conditions of its BOI Registration.

5 Pursuant to Section 4 of Republic Act (RA) No. 10708'. the Company is required to file its tax returns and pay its tax liabilities. on or before the deadline as provided under the National Internal Revenue Code of 1 997, as amended, using the electronic system for filing and payment Implementing Ruies and Regulations and Joint Memorandum Circular No. 1-2016 dated of taxes of the BIR. It shall file with BOI a complete annual tax incentives report of its incomc- base. as may be provided under E.O. 226. within the periods prescribed under RA No. 10708's September I, 2016. based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax

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 XHI1 and Section 57 of the Nationai Internal Revenue Code of :997, as anended, and impleinented 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 tax able year. Information Return under oath, stating its gross income and expenses incurred during the

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 Administered hy Investment Promotion Agencies.

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