BIR Ruling No. 796-2019

REPUBLICOFTHE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

u Quez:on City

Certificate of Tax Exemption No:

n.796-2019

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that TANZA PROPERTIES I, INC., with Taxpayers Identification Number (TIN) is exempt frorm income tax and creditable withholding tax on

consisting of 696_house _and lot units used solely for family home or dwelling purposes, horizontal, PHirst Park Homes Tanza Phase 1A -- BrgyTanauan,Tanza,Cavite located at Brgy. Tanauan,Tanza. Cavite, a project duly registered with the Board of (4) years beginning from June 2017 or actual start of commercial operations/selling. its income received directly in connection with its economic and low-cost housing project Investments (BOI) under Registration No. dated May 29, 2017, for a period of four

whichever is earlier, but in no case earlier than the date of registration of the project with the

Code of 1987" and Section 2.57.5 (B) (2) of Revenue Regulations (RR) No. 2-98, as amended. BOl, pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments

Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and belcw, or house and lot and other residential dwe lings valued at P3,199,200.00 and below, is exenot from value-added tax (VAT) pursuant to Section 109 (1) (P) of the National Internal Revenue Code of 1997, as amended.Provided, hcwever, that beginning January 01,2021, the

with selling price of not more than P2,000.000.00. exemotion from VAT shall only apply to sale of house and lot and other residential dwellings?

appropriate taxes under the National Internal Revenue Code of 1997, as amended. purposes such as leasing, retail stores, offices, etc., shall be subject to the payment of BOI Certificate of Registration, the excess is 5 lots3), including those units used for commercial However, the sale of house and lot units in excess of the 696 house and lot units (per

applicable BIR rules and regulations and the Terrns and Conditions stated at the back hereof. The Company is liable, however, for all other applicable taxes nct discussed above. The grant of tax exemption herein is subject tc the cormpliance with the provisions of

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

Issued this day of_DEC 1 7 201g

K-I-LMAT Commsinerfmegay Ren4 CAESAR R.DULAY

Sale of lot onlyregardless of the price, shall be subject to VAT starting January 01,2021 pursuant to RA No.10963. Per License to Sell Nos. 3Covered by HLURB License to Sell Nos. dated May 03, 201'7 issued by the Housing and Land Us Regulatory Board (HLURB). dated May 08.2017.

(PHirst Park Homes Tanza Phase IA) TANZA PROPERTIES I,INC CTE No. Date ssued_ DEC 1 7-2019 0796-2019

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

The exemption frorn income and creditable withholding taxes covers only income directly

attributable to the revenues generated from the registered project, PHirst Park Hones Tanza

family home or dwelling purposes, located at Brgy. Tanauan Tanza, Cavite. Such exemption shall Phase 1A -- Brgy. Tanauan, Tanza, Cavite, consisting of 696 house and lot units used solely for and lot units covered by License to Sell Nc. not cover revenues froin units with selling price exceeding P3,000,000.00. Moreover, the 696 house shall not be sold for more than P1,700,000.00

per house and lot.

2.The Company is obligated to comply with the following sales revenues:

Year (No. of Units) Volurne (in PhP000) Value

3 36 2 11

Total 701

3. In the computation of the project's ITH, interest income from in-house financing shall not be

considered as part of the revenues ger.erated 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 provis ions of the Specific Terms and Conditions of its BOI Registration.

Pursuant to Section 4 of Republic Act (RA) No. 107085, 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 1997, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOI a cornplete annual tax incentives report of its income-based tax incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base, as imay 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.

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

required under Chapter XIII and Section 57 of the National Internal Revenue Code of 1997, as and any of its emplovees received cornpensation income subject to compensation withhold-ng tax, or if it makes payments to individuals or corporations subject to the withholding taxes as source as

amended, and implerented by Revenue Regulations (RR) No. 2-98, as amended.

The Company is required to file on or befere 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 un der 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 ascertaining whether

it i 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.

While the company is obligat ci to construct 701 house and let units,the exemption from income and CWT covers only revenues generated from the 696 house ard lot mits allowed per HLURB License to Sell No. dated May(8.2017

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

Promotion Agencies