BIR Ruling No. 428-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No: Bc-0428-202 IUL 3 0 2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that HOUSEHOLD DEVELOPMENT CORP.,INC.,with Taxpayers Identification Number (TIN is exempt from income tax and creditable

housing project, Lessandra Bacoor 4 -- Salinas 1, Bacoor, Cavite consisting of 155 units used withholding tax on its income received directly in connection with its eeonomic-and low-cost

solely for family home or dwelling purposes, located at Brgy. Salinas 1, Bacoor, Cavite, a project duly registered with the Board of Investments (BOI) under Registration No. dated December 29, 2011, for a period of 3 years beginning from December 2011 or actual

start of commercial 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.

apply to sale of house and lot and other residential dwellingst with selling price of not more than P2,000,000.00. below, or house and lot and other residential dwellings valued at P3,199,200.00 and below, is amended. Provided, however, that beginning January 01, 2021, the VAT exemption shall only VAT-exempt under Section 109(1)(P) of the National Internal Revenue Code of 1997, as Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

the payment of appropriate taxes under the National Internal Revenue Code of 1997, as if any, including those house and lot units used for commercial purposes, shall be subject to amended. However, the sale of housing units in excess of the 155 units registered with the BOI.

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

documents as represented and submitted. However, if upon investigation, the sIR 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 fre facts and

Issued this day of JUL3 0 2020

K-1-MDT Commissioner of Internal Revenue 1aee8ara CAESAR R.DULAY 036051

1 Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 purstant to RA No. 10963.

HOUSEHOLD DEVELOPMENT CORP. INC. (LeSSaMidra E8or 4)CTE No.BO- 0 4.2 8 - 2 0 2

page 2 of2) Date issued_lul 3 0 2020

TERMS AND CONDITIONS OF THE CERTIFICATE OF TAX EXEMPTION

1. The exemption from incomei and creditable withholding taxes covers only income_directly attributable to the revenues generated from the Lessandra Bacoor 4 - Salinas 1, Bacoor shall not cover revenues from units with selling price exceeding P2,500,000.00. Moreover, the 155 Units covered by License to Sell No. Cavite, consisting of 155 units located at Brgy. Salinas 1, Bacoor, Cavite. Such exemption shall not be sold for more than P1,250,000.00 per house

and lot package.

2.The Company is obligated to construct and sell 155 units based on the following schedules/sales

revenues:

Year Volume (No. of Units) Value (Php000

38 2 3 S 15

Total 155

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 provisionstof the Specific Terms and Conditions of its BOI Registration.

5 Pursuant to Section 4 of Republic Act (RA) No. 107082, 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 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. 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 pray the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax

6.The Company shall be constituted as a withholding agent for the government if it acts as amployet and any of its employees received compensation income subject to compensation withholdngt te. required under Chapter XIII and Section 57 of the National Internal Revenue Code of 4007.-2as or if it makes payments to individuals or corporations subject to the withholding taxes:as:soirce cas amended, and implemented 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 followtirse t. clorse of its accounting period of a Profit and Loss Statement and Balance Sheet with M Amnua Information Return under oath, stating its gross income and expenses incurred during jecabie year.

8.Finally, the Company's books of accounts and other pertinent records shall be subiet to periodic examination by revenue enforcement officers of this Bureau for the purpose of asceriaining 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.

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