BIR Ruling No. 645-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Certificate of Tax Exemption No: 645-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Salinas 1, Bacoor, Cavite, a project duly registered with the Board of Investments (BOI) in no case earlier than the date of registration of the project with the BOl. pursuant to Sec.2.57.5 (B)(2) of RR No. 2-98, as amended. received directly in conncction with its economic and low-cost housing project, Lessandra Bacoor 7 - Brgy. Salinas 1, Bacoor, Cavite consisting of 245 housing units located at Brgy from March 2015 or actual start of commercial operations/selling, whichever is earlier, but Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987" and under Registration No. This certifies that HOUSEHOLD DEVELOPMENT CORPORATION with TIN is exempt from income tax and creditable withholding tax on its income dated March 27, 2015, for a period of 3 years beginning

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 1997 Tax Code, as amended. Moreover, the sale by the Company of residentiai lot valued at P1,919.500.00 and

applicable BIR rules and regulations and the Terms and Conditions stated at the back hereof. The Company is liabie, 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 ofDEC 19 2017

K - 1 Commissioner of Internal Revenue CAESAR R. DULAY 0 11925

Household Development Corporation. Page 2 of 2 Date issued CTE NO. 12-19-2017 345-2C17

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

t. The exemption from income and creditable withholding taxes covers only income directly attributabie to the revenues generated from the project, Lessandra Bacoor 7 - Brgy exceeding P3,000,000.00. Moreover, the 245 housing units covered by License to Seli No. Salinas 1, Bacoor, Cavite consisting of 245 housing units. located at Brgy. Salinas"1. Bacoor, Cavite. Such exemption shall not cover revenues from units with selling price shall not be sold for more than P1,250,000.00 per house & lot.

2. The Company is obligated to construct and sell 245 housing units based on the following schedules/sales revenues:

Total Year 2 3 (No.of Units) Volume 245 68 98 19 Value (Php '000)

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.

4. 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.

S 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 1997 Tax provided under E.0."226, within the periods prescribed under R.A. 10708's Impleinenting Rules and Regulations and Joint Memorandum Circular No. 1-2016 datcd September 1. 2016. Code, as amended, using the electronic system for filing and payment of taxes of thie 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

6. The Company shall be constituted as a withholding agent for the government if it acts as emptoyer and any of its employees reccivcd compensation incone subject to compensation withholding tax, or if it makes payments to individuals or corporations subiect to the withholding taxes as source as required under Chapter X1l1l and Section 57 of the Tax Code of 1997. as amended and implemented by Revenue Regulations (RR) No. 2-98, as amended.

7. The Company is required to file on or before the ISth 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.

8. Finally, the Company's books of accounts and other pertinent records shall be subject to ascertaining whether it is complying with the conditions under which it has been granted tax periodic examination by revenue enforcement officers of this Bureau for the purpose of exemption or tax incentives and its tax liability. if any, pursuant to Section 235 of' the Tax Code of 1997, as amended.