BIR Ruling No. 648-2017

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANGE

Quezon City

Certificate of Tax Exemption No: 648-2017

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

This certifies that COMMUNITIES BATANGAS, INC. with TIN is exempt from income tax and creditable withholding tax on its income received directly in connection with its economic and low-cost housing project. Camella Batangas City - Brgy. Alangilan, Batangas City consisting of 79 housing units located at Brgy. Alangilan. Batangas City, a project duly registered with the Board of Investments (BOI) under September 2014 or actual start of commercial operations/selling. whichever is earlier. but in Registration No. dated September 16, 2014, for a period of 4 years beginning from

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 Sec.2.57.5 (B)(2) of RR No. 2-98, as amended.

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 residential lot valued at P1.919.500.00 and

applicable BIR rules and regulations and the Terms and Conditions stated at the back hercof. The grant of tax exemption herein is subject to the compliance with the provisions of

The Company is liable, however. for all other applicable taxes not discussed above.

This Certificate of Tax Exemption is bcing issued on the basis of thc facts and documents 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 9 2017

A

Commissioner of Internal Revenug CAESAR R. DULAY 011"9 2 6 K-1

Communities Batangas. Inc. CTE No. 648-207 Page 2 of 2 Date issued 1:-19-2017

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, Camella Batangas City - Brgy Batangas City. Such exemption shali not cover revenues from units with setling price exceeding P3.000.000.00. Alangilan, Batangas City consisting of 79 housing units. located at Brgy. Alangilan.

The Company is obligated to construct and sell 79 housing units bascd on the following 2

schedules/sales revenues: Year 3 2 (No. of Units) Volume 23 23 2 Value(Php 000)

8 D Total 79

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 Thc 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.

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 deadlinc as provided under the 1997 Tax Code, as amended, using the electronic system for filing and payment of taxes of the BIR. It shall file with BOl 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 provided under E.O. 226, within the periods prescribed under R.A. 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 governnent 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 X11I and Section 57 of the Tax Code ofj 1997, as amended and implemented by Revenue Regulations (RR) No. 2-98. as amended.

The Company is required to file on or before the lsth day of the fourth month following the ciose 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 shali be subject te periodic examination by revenue enforcement officers of this Bureau for thc 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 Tax Code of 1997, as amended.

' An Act Enhancing Transparency in the Maragement and Accounting of Tax incentives Adininistered by Investment Promotion Agencies.