BIR Ruling No. 595-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Certificate of Tax Exemption No PO1-i2H-0595-202

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN

PASINAYA HOMES -Brgys. Catmon & Bulac, Sta. Maria, Bulacan, consisting of 138 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. income received directly in connection with its economic and low-cost housing project, house and lot units used solely for family home or dwelling purposes, located at Brgys. Catmon & Bulac, Sta. Maria, Bulacan, a project duly registered with the Boardof years beginning from June 2020 or actual start of commercial operations/selling, whichever is Investments (BOD) under Registration No. (TIN) This certifies that RAEMULAN LANDS,INC.with Taxpayers Identification Number is exempt from income tax and creditable withholding tax on its dated June 22, 2020, for a period of 4

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

registered with the BOI, if any, including those house and lot units used for commercial purposes such as leasing, retail stores, offices, etc. shall be subject to the payment of appropriate taxes under the National Internal Revenue Code of i1997, as amended. However; the sale of house and lot units in excess of the 138 house and lot units

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

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

Issued this day of 0CT 1.5

10

Commissioner of Internal Revenue CAESAR R.DULAY

K-1-MDT 037049 Q

I+ Sale f lot ony, regardessof the pric, shll e subject to VAT starting January O1, 2021 pursuant to RA No. 10963

RAEMULAN LANDS, INC. (PASINAYA HOMES) (page 2 of 2) Date issued_NCT1 5 202 CTENO.-L595-22

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income. directly not be sold for more than P1,700,000.00 per house and lot. attributable to the revenues generated from the project,PASINAY A HOMES-Brgys.Catmon & Bulac,Sta.Maria, consisting of 138 house and lot located at Brgys. Catmon & Bulac,Sta.Maria Bulacan. Such exemption shall not cover revenues from units with selling price exceeding P2,000,000.00. Moreover, the 138 house and lot units covered by License to Sell No. shall

2.The enterprise shall observe the following project timetable:

Activity Period Land Acquisition Start of Commercial Operations Site preparation and development Building/House construction Secure necessary license/permit/registration from the government/training costs August 2019-February 2019 February 2019 - June2019 July 2019 - August 2020 June 2019 -- June 2022 June 2020

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.

5.Pursuant to Section 4 of Republic Act (RA) No. 107082, the Company is required to file its 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 RA No. 10708's Implementing Rules and Regulations and Joint Memorandum Circular No. 1-2016 dated September 1, 2016. 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 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 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 XIII and Section 57 of the National Internal Revenue 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 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 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 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.

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

Promotion Agencies.