BIR Ruling No. 608-2020

S REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No:

BOI-LEH-0608 -2020

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

income received directly in connection with its economic and low-cost housing project (horizontal), Amaia Scapes Iloilo Sector 1A and 1B -- Brgy. San Jose, San Miguel, Iloilo, consisting of 3142 housing units used solely for family home or dwelling purposes, located at (TIN) Brgy. San Jose, San Miguel, Iloilo, a project duly registered with the Board of Investments (BOI under Registration No. years beginning from September 2016 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 Investments Code of 1987 and Section 2.57.5 (B) (2)'of Revenue Regulations (RR) No. 2-98, BOI, pursuant to Executive Order (EO)"No.226, otherwise known as"the "Omnibus as amended. This certifies that AMAIA LAND CORP.1, with Taxpayers Identification Number is exempt from income tax and creditable withholding tax on its dated September 29, 2016, for a period of four (4)

exemption from VAT shall only apply to sale of house and lot and other residential dwellings 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 exempt from value-added tax (VAT) pursuant to Section 109 (1) (P).of the National Internal Revenue Code of 1997, as amended'Provided, however, that beginning January 01, 2021, the Moreover, the sale by the Company of residential lot valued at P1,919,500.00 and

the BOI, if any, including those 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 1997, as amended. However, the sale of housing units in excess of the 314 housing units registered with

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 hereof. 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 of_OCT 2 7 2020

18wawa

K-1-LMAT Commissioner of Internal Revenue CAESAR R.DULAY 037282

2 Sector iA: 192 housing units per License to Sell No 1 Formerly: First Communities Realty, Inc. and Sector 1B: 122 housing units per License to Sell No.

3Sale of lot only, regardless of the price, shall be subject to VAT starting January 01, 2021 pursuant to Republic Act (RA) No. 10963.

(Amaia Scapes Iloilo Sector IA and 1 B) AMAIA LAND CORP Date issued: CTE No.: BOI-LEH- 0608-2020

TERMS AND CONDITIONS OFTHE CERTIFICATE OF TAX EXEMPTION

1. The exemption from income and creditable withholding taxes covers only income directly cover revenues from units with selling price exceeding P3,000,000.00. Moreover, the 122 housing home or dwelling purposes, located at Brgy. San Jose, San Miguel, Iloilo. Such exemption shall not units covered by License to Sell No. attributable to the revenues generated from the project, Amaia Scapes Iloilo Sector 1A and 1B house and lot. -Brgy.San JoseSan Miguel,Iloilo,consisting of314 housing units used solely for family shall not be sold for more than P1,700,000.00 per

2. The Company is obligated to construct and sell 314 housing units based on the following schedules/sales revenues:

Year (No. of Units) Volume (PhP'000) Value.

56 2 3 96 96

Total 4 314 66

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.

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. 107084, the Company is required to file its tax 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 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 the BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax Revenue Code of 1997, as amended, using the electronic system for filing and payment of taxes of

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.

The Company is required to file on or before the 15th day of the fourth month following the close Information Return under oath; stating its gross income and expenses incurred during the taxable of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual

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.

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

PAGE2OF2